Monday, 9 October 2017

Asian Infrastructure Investment Bank (AIIB)


 AIIB is a new multilateral financial institution founded to bring countries together to address the daunting infrastructure needs across Asia.

 The bank has 52 member states while another 18 are prospective members with its headquarters at Beijing, China.

 United States and Japan are not its members.

 It aims to stimulate growth and improve access to basic services by furthering inter connectivity and economic development in the region through advancements in infrastructure.

 AIIB offer sovereign and non-sovereign finance for projects in energy and power, transportation and telecommunications, rural infrastructure and agriculture development, water supply and sanitation, environmental protection, urban development and logistics.

 The loans will have an interest rate of London Interbank Offered Rate (LIBOR) plus 1.15 % and a repayment period of 25 years with 5 years in grace period.

 It has authorized capital of US 100 billion dollars and subscribed capital of USD 50 billion.

 China, India and Russia are the three largest shareholders of AIIB, taking 30.34%, 8.52%, 6.66% stake respectively.

 Their voting shares are 26.06%, 7.5% and 5.92% respectively.

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