Infrastructure Private Capital Mobilization Platform (AIIB-000274)

Regions
  • East Asia and Pacific
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
U
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jul 22, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 54.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 54.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 1,800.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ AIIB website

Updated in EWS Nov 14, 2019

Disclosed by Bank Jan 1, 2019


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Project Description

According to the project website, this proposed AIIB funding would support a "new platform business that will purchase infrastructure loans from financial institutions and distribute them to institutional investors through securitization or other formats."  The purported objectives of this platform would be: (1) to develop infrastructure capital markets for sale to institutional investors; (2) to "mobilize a new pool of institutional capital for Asian infrastructure"; and (3) "to support the recylcing of infrastructure lending of banks' balance sheets."

At the time of disclosure, the environmental and social risk category was "N/A."

Investment Description
  • Asian Infrastructure Investment Bank (AIIB)

By year five, AIIB will have disbursed up to US$ 54 million of equity capital to the platform, with the remaining US$ 126million funded by other investors and partners. Total debt financing of up to US$ 1.8 billion could be raised to support the platform. The proceeds will be used mainly for funding loans and investments and support operations of the platform.

Contact Information

AIIB

Stefen Shin / Senior Financial Institutions Relationship Office

Email: Stefen.Shin@aiib.org

ACCOUNTABILITY MECHANISM OF AIIB

In addition, the AIIB has a Bank Oversight Mechanism. According to AIIB's policies, "people who believe they have been or are likely to be adversely affected by a failure of the Bank to implement the ESP may also submit complaints to the Bank's oversight mechanism in accordance with the policies and procedures to be established by the Bank for such mechanism." However, at the time of writing, it is unclear what the exact scope and function of this Oversight Mechanism will be.

For information on how to make submissions to the PPM, please visit the PPM web page: https://www.aiib.org/en/policies-strategies/operational-policies/policy-on-the-project-affected-mechanism.html