Special Fund Window for Less Developed Members (SFW)

The SFW is AIIB’s new special fund aiming to make AIIB loans more affordable for its less developed members. The facility was first piloted under the COVID-19 Crisis Recovery Facility and has been expanded as a regular facility in March 2022.

Supported Activities

The SFW will provide 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 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.

Eligibility

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.

Funding Source

The SFW will be funded by voluntary contributions from AIIB’s Members. Until new contributions are received, the SFW is currently only available for vaccine financing under the COVID-19 Crisis Recovery Facility, through a reallocation of resources from the Project Preparation Special Fund.

Quick Links

Contact

Information Request

If you require additional details about the information on this webpage, please send us an email:

SEND AN EMAIL

Home About AIIB What We Do Special Funds Resources AIIB Special Fund Window for Less Developed Members