Multilateral Cooperation Center for Development Finance Presentation
AIIB Financial Instruments
•
Sovereign-Backed
Financing
Sovereign-backed loans will have
an average maturity of up to 20
years and a max. maturity limit of
up to 35 years.
• AIIB continues to co-finance
projects with other lenders in
addition to expanding its
standalone portfolio.
• Public sector loans conduct a full
assessment of the project's
benefits, risks and borrower
implementation capacity.
Non-sovereign-Backed
Financing
• Borrowers could range from sub
sovereign public entities to
private enterprises.
• The terms and conditions will be
set on a commercial basis and
reflect the expected risk to the
Bank and market conditions.
• AIIB's exposure can be up to 35
percent of the long-term capital of
the obligor, or for a new project, up
to 35 percent of the project's value.
Equity
investments
Equity investments
• Fair terms,
• Clear potential exit strategy
Acceptable internal rate of
return.
• Limits: up to 10 percent of
available capital
• AIIB would be a minority investor
and shall not seek a controlling
interest in the target entity or
enterprise.
.
•
Guarantees
Partial Debt Guarantee are
available to clients.
• Private sector operations
•
Incorporates partial debt
guarantees and unfunded
risk participations.
Projects involving guarantees will
be appraised, processed, and
monitored the same way as loans.
• For capital headroom and exposure
management purposes, guarantees
will be treated as if they were on
the balance sheet (i.e. treated the
same way as loans).
AIIB
CO
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