To mobilize private capital from institutional investors to grow and sustain infrastructure investment in Asia and Latin America.
GIP EM is a closed-end fund with a target size of USD5 billion. The Fund aims to take advantage of the large number of investment opportunities in the infrastructure sector across growing middle-income emerging markets globally with a focus on China, India, Indonesia, Malaysia, the Philippines and Viet Nam in Asia, and Brazil, Chile, Colombia, Mexico and Peru in Latin America.
AIIB’s Environmental and Social Policy (ESP) is applicable to this project. The project has been placed in Category FI, because the financing structure involves the provision of funds through a financial intermediary (the Fund). AIIB will delegate to the Fund Manager the decision-making on the use of AIIB’s proceeds for further investing in accordance with the Environmental, Social and Governance Management System (ESGMS) as agreed with AIIB. The ESGMS will be adopted by the Fund prior to the execution of the financing agreements for this Project.
The Fund Manager’s ESGMS shall include screening, categorizing, appraisal, contracting and monitoring of investments supported by AIIB in accordance with the ESP, the Environmental and Social Exclusion List, regulatory requirements in the jurisdictions of operation and, where applicable, the AIIB Environmental and Social Standards (ESS). AIIB financing will not be utilized to fund portfolio companies’ Category A or high-risk Category B subproject�s.
Coal mining, coal transportation and coal-fired power plants, as well as infrastructure exclusively dedicated to support any of these activities will be excluded from eligibility for financing under the Project. The ESGMS will include processes for timely disclosure of environmental and social (ES) information, conduct of stakeholder engagement activities, and establishment of subproject-level Grievance Redress Mechanisms (GRMs) to address concerns and grievances from both project workers and project-affected people. The Fund Manager will monitor these aspects as part of its portfolio monitoring process. For all investments supported by AIIB, the Fund will seek to require the establishment of a portfolio company-level ESGMS aligned with the Fund ESGMS.
The Fund Manager will be required to periodically disclose the names, locations and sectors of portfolio companies that are being supported by AIIB’s financing, subject to regulatory constraints and market sensitivities. Furthermore, the Fund Manager will be required to create an external communication mechanism to address views of affected people, enquiries or concerns regarding its own ES processes and outcomes as well as ES impacts and performance of the portfolio companies invested by the Fund. The Fund will submit to AIIB an annual ES monitoring report on the ES performance of all AIIB-supported investments. AIIB will conduct regular monitoring of the Fund’s activities, including visits to selected investments when travel restrictions are lifted.