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Multicountry: AIIB Asia ESG Enhanced Credit Managed Portfolio

SUMMARY

STATUS
Approved
MEMBER
Multicountry
SECTOR
Multi-sector
PROJECT NUMBER
000152

FINANCING

APPROVED FUNDING
USD500 million
FINANCING TYPE
Nonsovereign

TIMELINE

CONCEPT REVIEW
August 31, 2018
APPRAISAL REVIEW/FINAL REVIEW
November 12, 2018
FINANCING APPROVAL
December 18, 2018

OBJECTIVE

The objectives of setting up the credit portfolio are to unlock the greatest potential to mobilize private capital for infrastructure from institutional investors, by developing infrastructure as an asset class and deepening the sustainable debt capital market in Asia, catalyzing ESG investment strategies in Emerging Asia by developing the AIIB ESG Framework and launching an ESG Markets Initiative to build capacity amongst market participants and providing financing to infrastructure-related issuers via subscriptions to primary issuances.

DESCRIPTION

The focus of the credit portfolio is to develop the Asia debt capital market with a specific focus on infrastructure-related bonds as an asset class. To maximize impact, the project focuses on corporate bonds issued by infrastructure-related issuers (including quasisovereign) and green bonds, where proceeds are directed to sustainable infrastructure and other productive sector projects. At this initial phase of debt capital market development, project bonds and other infrastructure-related fixed income securities are not the focus of this credit portfolio.

PROJECT FINANCING

For more information about project financing, please review the project summary.

ENVIRONMENTAL AND SOCIAL INFORMATION

A key objective of the Project is to catalyze ESG strategies throughout the debt capital market, and the most effective way to do this is through demonstration of an AIIB ESG Framework that is consistent with the spirit and vision of the AIIB’s Environmental and Social Framework. The Project Team will seek a derogation from AIIB’s Board of Directors of AIIB’s Environmental and Social Policy, and in its place, proposes to use a best-in-class ESG framework that is more suitable for capital markets investment.

Please review the project summary for additional information.

PORTFOLIO MONITORING OFFICER

Emily Zhou

Portfolio Management Officer - Capital Markets

emily.zhou@aiib.org

 

PROJECT DOCUMENTS

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