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.
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.
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 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.