Beijing, May 11, 2022
AIIB Signs USD200M On-lending Facility to Support Sustainable Infrastructure Development in Bangladesh
The Asian Infrastructure Investment Bank (AIIB) and the Government of Bangladesh have signed a USD200-million on-lending facility to Infrastructure Development Co. Ltd (IDCOL) to finance infrastructure projects in Bangladesh, marking AIIB’s first investment through a financial institution into infrastructure in the country. IDCOL is a government-owned nonbanking financial institution established for infrastructure financing in Bangladesh. AIIB’s investment will provide IDCOL with financing that it will further onlend to private companies to support infrastructure projects.
The large infrastructure deficit in Bangladesh is one of the most critical development challenges facing the country. Bangladesh’s Perspective Plan 2041 highlights the need for an annual investment of USD10 billion in infrastructure over the next two decades. Despite the impressive development achievements, Bangladesh faces several development challenges that were exacerbated by the COVID-19 pandemic.
The project will support Bangladesh’s goal to bridge its infrastructure deficit and achieve sustainable growth, as highlighted by the government’s both short-term and long-term plans. The project will make long-term financing available for infrastructure subprojects in power generation, renewable and low-carbon electricity, information and communications technology infrastructure, cross-regional transportation and others, thereby enhancing economic activity and creating employment opportunities.
“By providing long-term financing to the private sector in Bangladesh, AIIB will promote infrastructure investment, help alleviate the funding constraints faced by private sponsors, and help mobilize private capital by attracting additional financing,” said AIIB Vice President, Investment Operations (Region 1) Urjit R. Patel. “This project also aligns with AIIB’s thematic priority to finance green infrastructure. Aside from further strengthening the partnership between AIIB and Bangladesh to promote sustainable infrastructure development, this will also help facilitate the country’s economic and financial recovery amid the pandemic.”
As of today, AIIB has approved 15 projects amounting to over USD2.8 billion in Bangladesh, in which more than half of the projects are focusing on energy, transport and water sector.
More information about the IDCOL Multi-Sector On-Lending Facility can be found here.
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is financing the Infrastructure for Tomorrow—infrastructure with sustainability at its core. We began operations in Beijing in January 2016 and have since grown to 105 approved members worldwide. We are capitalized at USD100 billion and Triple-A-rated by the major international credit rating agencies. Collaborating with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.
More News Articles
Sharm el-Sheikh, November 22, 2022
AIIB Signs USD500-Million Agreement at COP27 to Support Pakistan’s Economic Resilience
At COP27, the Asian Infrastructure Investment Bank (AIIB) signed a USD500-million loan agreement with the government of the Islamic Republic of Pakistan to support the Building Resilience with Countercyclical Expenditures (BRACE) Program.READ MORE
Sharm el-Sheikh, November 22, 2022
AIIB Supports Egypt’s Efforts to Boost Renewable Energy and Stimulate Climate Action
At COP27, the Asian Infrastructure Investment Bank (AIIB) joined development partners in signing a partnership agreement with Egypt’s Ministry of Electricity and Renewable Energy, Ministry of Environment and Ministry of International Cooperation, to jointly support the country’s efforts to boost renewable energy and stimulate climate action through its country-led program: Nexus on Water, Food and Energy (NWFE).READ MORE
Sharm el-Sheikh, November 15, 2022
AIIB Enhances Commitment to Renewable Energy Infrastructure
The Asian Infrastructure Investment Bank (AIIB) has committed USD40 million to the first fund close of Alcazar Energy Partners II (the Fund). The agreement was signed by Sir Danny Alexander, AIIB Vice President for Policy and Strategy and Daniel Calderon, Co-Founder and Managing Partner of Alcazar Energy Partners-II (AEP-II), at COP27 in Sharm El-Sheikh, Egypt.READ MORE
Sharm el-Sheikh, November 14, 2022
At COP27, AIIB Takes Action to Further Promote Climate-Resilient Infrastructure Investments
The Asian Infrastructure Investment Bank (AIIB) announced at COP27 that it has joined the Coalition for Climate Resilient Investment (CCRI), fostering a strategic partnership to apply climate-resilient solutions.READ MORE