Beijing, China, July 17, 2020
AIIB Approves First Vietnam Loan to Help Private Sector COVID-19 Response
The Asian Infrastructure Investment Bank’s (AIIB) Board of Directors approved a loan of USD100 million to Vietnam’s Prosperity Joint Stock Commercial Bank (VP Bank). AIIB’s first project in Vietnam would help VP Bank expand lending to the private sector—including small and medium enterprises—to help sustain business activities disrupted by the COVID-19 pandemic.
Cofinanced with the International Finance Corporation, the nonsovereign loan will support VP Bank’s capacity to provide critical liquidity support and working capital to clients during the crisis, which in turn will support economic recovery in Vietnam.
“This will be AIIB’s first financial intermediary financing in Southeast Asia that will target support for the private sector,” said AIIB Vice President, Investment Operations, D.J. Pandian. “Small and medium enterprises are the backbone of the economy and by injecting liquidity into the market we can help this critical sector as part of the overall economic recovery in Vietnam.”
While Vietnam’s economy has been growing for decades, supported by booming consumption by the growing and urbanizing middle class, the country is severely affected by COVID-19 and has suffered significantly during the outbreak. Vietnam’s GDP growth fell to 3.8 percent in the first quarter of 2020. The International Monetary Fund forecasts the country’s real GDP growth will drop to 2.7 percent in 2020 from 7.0 percent in 2019.
As of July, AIIB’s Board has approved a total of 16 projects under its COVID-19 Crisis Recovery Facility, amounting to over USD5.9 billion to support 12 members in navigating the challenges of these highly uncertain times. AIIB is reviewing additional projects from its clients.
Additional information about VP Bank’s response to the crisis can be found here.
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, we began operations in January 2016 and have now grown to 102 approved members worldwide. By investing in sustainable infrastructure and other productive sectors in Asia and beyond, we will better connect people, services and markets that over time will impact the lives of billions and build a better future.
Beijing, China, October 23, 2020
AIIB Support Helps Keep Russia’s Railways on Track
To help alleviate the temporary liquidity constraints caused by the decline of long-haul passenger transportation and deferred client payments against the backdrop of the COVID-19 outbreak, AIIB is extending financing to Russian Railways (RZD) in the local currency equivalent of USD300 million.READ MORE
London, UK, October 14, 2020
AIIB debut in GBP market unlocks new financing for sustainable development
The Asian Infrastructure Investment Bank (AIIB) today priced its first GBP-denominated benchmark transaction. The five-year sustainable development bond raised GBP 800 million and will finance AIIB’s mission of financing infrastructure for tomorrow – investing in sustainable infrastructure to unlock new capital, new technologies and new ways in which to address climate change and to connect Asia, and the world.READ MORE
Beijing, China, September 28, 2020
AIIB Approves USD150-M Loan to Improve Digital Connectivity in Indonesia
The Asian Infrastructure Investment Bank (AIIB) is ramping up its investment in digital infrastructure among its members, with a USD150-million nonsovereign loan to Satelit Nusantara Tiga (SNT) for a multi-functional satellite that will cover 45 million people.READ MORE