The Asian Infrastructure Investmnet Bank (AIIB) is a multilateral development bank (MDB) established by international treaty and headquartered in Beijing, China, founded to bring countries together to address Asia’s infrastructure funding gap, estimated at USD26 trillion through 2030.1 Our core principles are openness, transparency, independence and accountability.
AIIB is open to shareholders who are dedicated to promoting economic and social development across Asia and beyond. Our membership is open to members of the International Bank for Reconstruction and Development or the Asian Development Bank. Please see our current membership here.
AIIB’s primary focus is on financing projects that benefit the economic and social development of Asia. Projects should support sustainable infrastructure, cross-border connectivity and private capital mobilization.
Projects can be based in any member shareholder, as long as the project will deliver benefits to the Asian region. All financings must meet the conditions set out in AIIB’s Environmental and Social Framework (ESF), which ensures that all projects are contributing to sustainable development.
AIIB developed its ESF, including the ESP, based on consultation with Member Governments, other MDBs and a wide range of external stakeholders, including NGOs and CSOs. The ESF was developed with consideration given to the objectives of the United Nation’s Sustainable Development Goals (SDGs) and the Paris Climate Accord.
AIIB is rated triple-A by Standard & Poors, Moody’s and Fitch Ratings. Our credit strength is based on several factors; 1) significant subscribed capital base of USD100 billion, of which USD20 billion is paid-in (among the highest in absolute terms of all MDBs), 2) conservative financial risk management and liquidity management policies, managed to maintain the triple-A ratings, 3) committed global shareholder base, 4) preferred creditor treatment, 5) diversified loan portfolio across sectors and countries, and 6) experienced management team.
There are no concrete forecasts over a five-year horizon, as AIIB’s portfolio is evolving. Our lending is demand-driven and depends on the financial sustainability of project proposals. AIIB has not put any hard limits on investments by sector as long as AIIB’s risk exposure remains within allowed limits. The only hard limits we maintain on lending are 1) no single country exposure may be more than 50 percent of total available capital, and 2) the sum of the top three country exposures may not account for more than 90 percent of total available capital. In terms of sectors, we expect investments will be made mainly in the energy, transport and urban/water sectors.
AIIB deploys funds available via the Project Preparation Special Fund facility on terms and conditions consistent with the purpose and functions of AIIB. These funds are managed separately and are entirely independent from our Ordinary Resources. Currently, AIIB operations one Project Preparation Special Fund facility, with contributions from China, Hong Kong-China, Korea and the United Kingdom. Monies are transferred to AIIB as grants and do not represent contributions from all members.
AIIB is working with other MDBs to learn from their experiences and enhance AIIB’s operating efficiency, product offerings and reduce costs. We have signed a co-financing framework agreement with the World Bank. We have also signed Memorandums on joint cooperation and co-financing with: the African Development Bank, the African Development Fund, the Asian Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank and Inter-American Investment Corporation, the Islamic Development Bank Group, the New Development Bank and the World Bank Group.
1 Source: "Meeting Asia’s Infrastructure Needs", ADB 2017