Institution details
Asian Infrastructure Investment Bank (AIIB)
Key facts
- Established in 2016
- Ownership: Public
- B-9 Financial St., Xicheng Dist.
- None
- https://www.aiib.org
Latest update: 03/12/2021
rating type | rating agency | type | rating |
---|---|---|---|
Institution rating | S&P | Foreign currency | AAA |
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
Performance highlights
What's new?
- AIIB welcomed several new members including Lebanon, the Cook Islands, Vanuatu, Belarus, and Ecuador
- Adopted policies on private capital mobilization, public information, project approvals, and a transport sector strategy
- The bank signed an MOU with the African Development Bank and the African Development Fund to collaborate on sustainable economic development
- AIIB has an environmental and social framework with guidelines in respect of: - Environmental and social assessment and management - Involuntary resettlement - Indigenous peoples
- AIIB also has a strict risk management framework to properly assess and mitigate risk
- The bank also has policies on asset liability management, financing, and prohibited practices