Multi-country: Asia Climate Bond Portfolio (AIIB-000312)

Regions
  • East Asia and Pacific
Where the impacts of the investment may be experienced.
Specific Location
Region-wide
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
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
Aug 27, 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)
$ 500.00 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)
$ 500.00 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)
$ 500.00 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 May 21, 2020

Disclosed by Bank May 21, 2019


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Project Description

According to the bank document, the project seeks to address the underdevelopment of the climate bond market in AIIB members through a managed fixed income portfolio of US$ 500 million. It expects to mobilize another US$ 500 million from climate change-focused institutional investors. The project also seeks to allocate a portion of the investment proceeds for market education, engagement and issuer support.

The project seeks outperformance by identifying, analyzing and selecting climate champions—issuers who are well placed to thrive in the coming climate change environment. The selection of climate champions will be based on the Climate Change Assessment Framework. The Asia Climate Bond Portfolio has four main objectives:

1. Increase climate finance flows for sustainable infrastructure in emerging market (EM) Asia through the debt capital markets by identifying and investing in climate champions.

2. Create a Climate Change Assessment Framework to assess climate change investment risk and opportunity and fulfill the Paris Agreement’s objectives.

3. Catalyze and mobilize investment from one or more climate change-focused institutional investors, which will further validate the Climate Change Assessment Framework.

4. Provide market education and engage with B-list issuers to support their transformation to become A-list climate champions.

Investment Description
  • Asian Infrastructure Investment Bank (AIIB)

A Separately Managed Account of US$500 million

Contact Information

Contact Points:

1/ AIIB Contact: Stefen Shin

Title: Senior Financial Institutions Relationship Officer

Email address: stefen.shin@aiib.org

2/ Investment Advisor Contact: Vanessa Wang

Title: MD and Head of North Asia Institutional Business, Amundi

Email address: Vanessa.wang@hk.amundi.com

In view of the derogation from the application of AIIB’s, the Policy on the Project-Affected People’s Mechanism (PPM) would also not apply to this project.

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.