Jun 12, 2019 (China Knowledge) - The China-backed Asia Infrastructure Investment Bank (AIIB) has increased its pace of lending since last year and expects to see even more activity this year.
The AIIB which specializes in infrastructure projects in Asia that may face trouble raising funds through other financing channels has made about USD 8 billion worth of investments in 40 projects this year, increasing by 25% from the USD 6.4 billion in loans the bank had made as of November last year.
Over the last 6 months, the AIIB has approved 8 new projects in countries such as Indonesia, Nepal, Bangladesh and Sri Lanka, highlighting growing momentum in the bank’s investment pipeline and portfolio.
Currently, the AIIB is made up of 97 member countries with China remaining as its largest shareholder with 26% of its voting shares. India and Russia rank second and third with 7.6% and 6% of its voting shares respectively.
As a multilateral institution, the AIIB remains relatively well-positioned to weather the current uncertain economic climate driven by the ongoing trade war. However, with the recent escalation of trade tensions, the AIIB is starting to see some impact on investments.
Increased geopolitical uncertainty has resulted in a downturn in infrastructure investments by the private sector which has also led to greater pressure for the bank.
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