The Asian Infrastructure Investment Bank’s (AIIB) Board of Directors has approved a USD75-million investment into the Asia Investment Fund (AIF), a closed-end private equity fund established in Hong Kong, China that focuses on telecommunication, transportation and energy.
The investment aims to mobilize private capital for infrastructure and other productive sectors by investing in minority equity stakes in Asian companies via a private equity fund. The AIF’s target size is USD3 billion with a 10-year term from the final closing date.
“With this investment, AIIB will be able to construct a well-diversified equity portfolio across AIIB members,” said AIIB Vice President and Chief Investment Officer D.J. Pandian. “This aligns well with AIIB’s Strategy on Investing in Equity. Participating in the AIF will progressively develop our equity capacity while benefiting from a market risk-adjusted return for our long-term financial sustainability.”
AIIB currently is the only multilateral investor in the AIF, which pitches to other global institutional investors.
“The investment presents a good opportunity for AIIB to influence positively the investment processes of a sizable fund by contributing to the environmental, social and governance management system of the fund manager,” said AIIB Director General Dong-Ik Lee. “Investing in the AIF also helps us gain access to both debt financing and equity co-investment opportunities with the portfolio companies of the fund.”
The AIF was established with a USD500-million initial commitment from the Ministry of Finance of the People’s Republic of China, investing as a limited partner in the fund.
Additional information about the project can be found here.
About AIIB
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, we began operations in January 2016 and have now grown to 97 approved members worldwide. By investing in sustainable infrastructure and other productive sectors in Asia and beyond, we will better connect people, services and markets that over time will impact the lives of billions and build a better future.
Baku , November 14, 2024
GCA, AIIB Partner to Strengthen Climate Resilience in Infrastructure Projects
The Global Center on Adaptation (GCA) and the Asian Infrastructure Investment Bank (AIIB) have signed a Letter of Intent (LOI) to establish a strategic partnership aimed at mainstreaming climate adaptation and resilience within infrastructure projects across Asia and Africa.
READ MOREBaku , November 13, 2024
AIIB, ADB Renew Partnership to Tackle Regional Development Challenges
On the margins of COP29 in Baku, Azerbaijan, the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB) renewed their Memorandum of Understanding (MOU) to deepen cooperation in addressing Asia’s most pressing development challenges.
READ MOREBaku, November 12, 2024
Multilateral Development Banks to Boost Climate Finance
Multilateral development banks (MDBs) today issued a joint statement at COP29 in Baku outlining financial support and other measures for countries to achieve ambitious climate outcomes.
READ MOREBeijing, October 29, 2024
AIIB Commits EUR75 Million to Support ENGIE’s Global Renewable Energy Expansion, Decarbonization
The Asian Infrastructure Investment Bank (AIIB) has committed EUR75 million to a EUR500 million sustainability-linked green loan facility to support ENGIE’s global renewable energy portfolio expansion and decarbonization efforts.
READ MORE