The Asian Infrastructure Investment Bank (AIIB) continues its collaborative approach to address the infrastructure gap in Asia by investing US$150 million in the IFC’s Emerging Asia Fund and co-financing a project with the Asian Development Bank (ADB) to improve energy connectivity in India by strengthening its power transmission system.
"To mobilize sufficient funds to address the huge infrastructure needs across Asia, multilateral development institutions must collaborate with each other and a range of other partners," said D.J. Pandian, Vice President and Chief Investment Officer, AIIB. "We will continue to welcome opportunities to combine our investments and talent with other international financial institutions to drive positive economic outcomes for people in the region."
Aligned with its commitment to promote cooperation and partnership with other multilateral development institutions, AIIB will become one of the major investors in the IFC Emerging Asia Fund. This fund will have positive economic impacts on emerging markets by promoting job creation through the availability of capital and expertise. The fund, managed by the IFC Asset Management Company, will among other things, help promote the private equity asset class in emerging markets, such as Bangladesh, Cambodia, China, India, Indonesia, Myanmar, Philippines, Sri Lanka and Viet Nam.
The Bank’s Board of Directors also approved a US$100 million loan for the Transmission System Strengthening Project in the Republic of India to enhance energy connectivity and make substantial contributions to a reliable electricity supply in south India. In partnership with the ADB, this project will construct and install five transmission lines that will help optimize the overall electricity system, improve the generation mix, and better utilize renewable energy resources.
Since launching in 2016, AIIB has approved US$3.49 billion in financing for 21 infrastructure projects in 11 countries. 16 of the projects are co-financed with other multilateral development banks and the remaining five projects are led independently by AIIB.
More information on these and upcoming projects may be found at here.
About AIIB
AIIB is a new multilateral development bank founded to bring countries together to address the daunting infrastructure needs across Asia. Headquartered in Beijing, AIIB commenced its operation in January 2016 and has now grown to 80 approved members from around the world. Its mission is to improve economic and social development in Asia by investing in high quality, financially viable and environmentally friendly infrastructure projects.
