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Asian Infrastructure Investment Bank (AIIB)

Key facts

  • Established in 2016
  • Ownership: Public

Latest update: 03/12/2021

Products

  • Equity
  • Loans
  • Other products

Equity


  • AIIB can make direct equity investments in new or existing private or public sector companies, in modalities including:
    - Subscriptions to ordinary shares or preference shares (or a combination of both)
    - A loan convertible into equity—AIIB’s investment may not exceed 30% of the company’s ownership holdings; in exceptional circumstances, the Board may decide to approve a higher, but not controlling share
  • If AIIB’s investment is in jeopardy, it may take control of the company in order to safeguard its investment


Loans


  • AIIB can provide financing on a sovereign basis, directly to AIIB member governments or to entities guaranteed by AIIB member governments
    - Sovereign guarantees must cover debt service defaults caused by a government’s failure to meet a specific obligation in relation to the project being financed or by a borrower’s failure to make a payment under the loan and must be accompanied by a sovereign indemnity"
  • AIIB can also provide financing on a non-sovereign basis to private-sector firms or sub-sovereign entities not backed by a guarantee or counter-guarantee and indemnity provided by an AIIB member government to the bank


Other products


  • AIIB may make an advance to finance preparatory activities for a project to be supported by sovereign-backed financing—such an advance would only be made when there is a strong probability that the financing for which it is granted will be extended
    - Granting a preparation advance does not obligate AIIB to finance or otherwise support the project for which it is granted
    - The maximum aggregate principal amount of all approved preparation advances for any given project may not exceed the lesser of 10% of the total estimated amount of financing for the project, USD 10 million equivalent, or exceptionally higher if approved by AIIB’s president

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