The Special Fund Window for Less Developed Members (SFW) makes AIIB loans more affordable for its less developed Members. The facility was first piloted under the COVID-19 Crisis Recovery Facility in May 2020 and has been expanded as a regular facility in March 2022.
The SFW provides interest rate buy-down to eligible sovereign-backed financing projects that are aligned with AIIB’s Corporate Strategy and identified according to AIIB’s regular and rigorous investment process. Such financing will receive a discount of up to 100 basis points from the regular interest for USD-denominated loans, with an interest rate floor of zero. Buy-down can also apply to other hard currency loans provided by AIIB. In such cases, the Bank will calculate an applicable buy-down rate for that currency on a project-by-project basis.
- Member eligibility: AIIB Members classified by the World Bank as International Development Association (IDA)-only countries are eligible. Exceptionally, AIIB Members with IDA Blend status may apply in events of severe and intense natural disasters.
- Project eligibility: Any sovereign-backed financing operations by eligible AIIB Members, excluding policy-based financing.
The SFW is funded by voluntary contributions from AIIB’s Members. Contibutions have been received from the Kingdom of Saudi Arabia; Germany; and China.
