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."
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.
Stefen Shin / Senior Financial Institutions Relationship Office
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