AIIB, Four Local Banks To Mobilise Up To US$6 Bln For ASEAN Infrastructure Projects
KUALA LUMPUR, Oct 30 (Bernama) -- The Asian Infrastructure Investment Bank (AIIB) has inked cooperation agreements with four local banks to mobilise up to US$6 billion (US$1=RM4.1835) for sustainable and technology-enabled infrastructure projects across the ASEAN region.
The banks are Malayan Banking Bhd (Maybank), CIMB Bank Bhd, AMMB Holdings Bhd, and Bank Pembangunan Malaysia Bhd.
AIIB stated in a press release today that the initial term of the agreements will be up to October 2031.
The agreements were signed following the ASEAN Summit in Kuala Lumpur, reflecting their commitment to advancing green and inclusive infrastructure, strengthening regional connectivity and catalysing private capital mobilisation to meet ASEAN’s growing infrastructure needs.
“Under these new partnerships, the institutions will support investments in key sectors such as renewable energy, power transmission and distribution, transport, digital infrastructure and telecommunications.
“The initiative combines the Malaysian banks’ regional expertise in developing and managing large-scale infrastructure assets with AIIB’s capacity to provide long-term capital through both debt and equity financing instruments,” said AIIB.
Its chief investment officer, public sector (Region 1) and financial institutions and funds (global) clients, Kim-See Lim, said the banks that were part of this agreement each bring something different to the table in terms of the presence across Asia, in terms of the various niches of asset classes that they finance in Malaysia and beyond.
“What AIIB brings is the convening power of this financial institution, the environmental, social, and governance standards into the projects, and also the ability to catalyse and bring in additional capital that is needed for regional connectivity projects such as the Asia Power Grid (APG),” she told a press conference after the cooperation agreement signing ceremony, here today.
Commenting on the APG, Kim said that as ASEAN is projected to become fourth fourth-largest collective economy by 2030, the energy demands and energy capacity needs to step up to bring more prosperity and economic growth to the region.
"We look forward to being a part of the region's energy transition," she said.
AIIB is a multilateral development bank dedicated to financing “infrastructure for tomorrow”, with sustainability at its core.
Kim said AIIB, which is AAA-rated by major international credit rating agencies, has accrued over US$64 billion from over 300 projects in 38 countries since the company was founded in 2016.
-- BERNAMA