The Asian Infrastructure Investment Bank (AIIB) President Jin Liqun and World Bank Group President Ajay Banga met on June 22 at the Summit for a New Global Financing Pact in Paris, France.
AIIB and the International Bank for Reconstruction and Development (IBRD), which is part of the World Bank Group, have been working together to address the G20 Capital Adequacy Framework Working Group recommendations for multilateral development banks to expand their use of financial innovation to provide additional lending capacity.
The proposal would utilize AIIB’s capital to issue USD1 billion guarantees against sovereign-backed loans made by IBRD, which would provide relief against capital constraints, thus enabling IBRD to provide fresh lending, as well as diversifying and enhancing AIIB’s portfolio, which would in turn enable it to increase lending to low-income borrowers.
Finalization of the project is subject to the respective approval process of both institutions.
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 106 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.