About Asian Infrastructure Investment Bank (AIIB)

AIIB multilateral development bank backed by China and is seen as a riva

l to the World Bank and Asian Development Bank (ADB).
It has been established to infrastructure projects including energy, tra
nsportation, urban construction and logistics as well as education and healthcar
e in Asia-Pacific region.
Headquarters: Beijing.
Members: Total there are 57 members, of which 37 are regional and 20 non-r
egional Prospective Founding Members (PFM).
Authorized capital: It will be of 100 billion US dollars. The initial su
bscribed capital will be around 50 billion US Dollar and the paid-in ratio will
be 20 per cent.
Regional character of the Bank: Its regional members (Asian) will be the
holding around 75 percent of shares i.e. they will be majority shareholders. Th
ey have been allocated their capital share on quota basis i.e. based on their ec
onomic size.
Voting share: For each member country it is based on the size of their e
conomy and not on authorised capital share to the Bank.
Largest shareholders: China is highest contributor with 30.34 percent st
ake in authorized capital. It has 26.06 per cent of the voting rights along with
veto powers for certain key decisions. India is second largest shareholder with
8.52 per cent stake and voting share of 7.5 per cent.
ASIAN INFRASTRUCTURE INVESTMENT BANK
Important Points to know about Asian Infrastructure Investment Bank (AII
B):

IMPORTANT POINTS TO KNOW

1). Asian Infrastructure Investment Bank (AIIB) is an international fina
ncial institution focused on crediting infrastructure construction in the AsianPacific region
2). Was proposed by China in 2013, supported by
37
regional members
20 non-regional members
3). AIIB to compete with
World Bank of India
Asian Development Bank
4). AIIB headquarters in Beijing, China
5). Initially consisted of
1
Founding member(FM)
Burma
56 Prospected Founding Members(PFM)
6). General Secretary

Jin Liqun

Former Finance Minister of China

7). On July 2015, 57 PFMs were supposed to become FMs by

Signing the 60-Articles of Agreement in 2015
Ratifying the 60-Articles of Agreement in 2015 or 2016
8). 7-countries from the PFM did not sign the Articles of agreement. The
y are
1
2
3

Denmark
Malaysia
Kuwait

4
5
6
7

Holland
Philippines
South-Africa
Thailand

9). Shares are based on the size of each member country s economy
10). 3- categories of votes exist:
Basic votes: equal for all members and constitute 18% of the total votes
Share votes: equal to the number of shares
Founding Member votes: each FM gets 600 votes
11). China is the highest share holder with 30.34% and voting share 26.0
6%
12). India 2nd highest share holder with 8.52% and voting share of 7.5%
13). Russia 3rd highest share holder with 6.66% and voting share of 5.92
%
14). Maldives is the smallest PFM
About Asian Infrastructure Investment Bank (AIIB).
AIIB Current Affairs
The China-led Asian Infrastructure Investment Bank (AIIB) has approved f
irst set of loans totalling US 509 million dollars to finance projects in four c
ountries viz. Bangladesh, Pakistan, Indonesia and Tajikistan.
These loans for the four projects were approved in Board of Directors me
eting of AIIB held at its headquarters in Beijing, China.
Projects approved
Bangladesh: US 165 million dollars loan for a Power Distribution System
Upgrade and Expansion Project.
Indonesia: US 216.5 million dollars loan for a National Slum Upgrading P
roject. It is expected to be co-financed with the World Bank.
Pakistan: US 100 million dollars loan for Shorkot-Khanewal Section of Na
tional Motorway M-4. It will be co-financed with the Asian Development Bank (ADB
) and the United Kingdom s Department for International Development (DFID).
Tajikistan: US 27.5 million dollars loan for the Dushanbe-Uzbekistan Bor
der Road Improvement Project. It will be co-financed with the European Bank for
Reconstruction and Development (EBRD).
These 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 per
iod. These projects spanning in the energy, transport and urban development sect
ors will help to bridge the region s critical infrastructure financing gap. It wil
l also help to strengthen regional connectivity