The Beijing-headquartered Asian Infrastructure Investment Bank (AIIB) launched a new framework to help the investor community better. This framework is to assess how AIIB is living up to its sustainability commitments.
The multilateral development bank said the framework outlines how AIIB is adhering to the principles set out in its environmental and social framework that guides project selection. In addition, the bank will assess its role in helping its members to meet their commitments under the Paris Agreement and the UN Sustainable Development Goals.
The document presents a summary of the policies, strategies, processes and mechanisms that govern AIIB’s commitment to sustainable financing activities. It also increases transparency around AIIB’s operations by setting out the use and management of proceeds, and how AIIB tracks the impact of its financing.
“The Sustainable Development Bond Framework is designed to facilitate bond investors’ assessment of AIIB’s commitment to sustainable development. It also increases the transparency of the environmental and social impact generated by AIIB financing,” said AIIB Treasurer Domenico Nardelli. “Under its mission of Financing Infrastructure for Tomorrow, AIIB will continue to scale up its sustainable and inclusive investments to meet clients’ needs for low-carbon and climate-resilient infrastructure.”
It further stated that an annual reporting on the Bank’s overall portfolio level and project-level environmental and social benefits will be made available on the AIIB official website.
The framework applies to all debt issued by AIIB in all markets and currencies. All AIIB bonds are Sustainable Development Bonds providing investors with an opportunity to improve social and economic outcomes in Asia. With a borrowing programme of USD10 billion for 2021, AIIB will continue to build its presence in the capital markets as a frequent borrower.
The framework was designed with Crédit Agricole CIB as Sole Structuring Advisor on sustainability. “In the same way that AIIB’s Environmental and Social Framework is the cornerstone of its mission, AIIB’s Sustainable Development Bond Framework is the assurance to investors that funds raised are intended to achieve environmentally and socially sustainable development outcomes,” said Myriam Zapata, Managing Director, Debt Capital Markets, Crédit Agricole CIB.