AIIB has lent $10bn to India to date, says Misra
The Asian Infrastructure Investment Bank (AIIB) says India has emerged as its biggest lending market with large scale of infrastructure being undertaken across the country.
“Lending to India will continue to grow as the bank balance sheet will also grow,” AIIB South Asia Director General Rajat Misra said on 25 Oct 2023.
Financing of a lot more new infrastructure projects are under discussion betrween AIIB and the Indian Government for next year, he said, pointing out that for this year the bank has lent more than US$1.3 billion to Indian projects.
AIIB lending in 2023 included US$438 million for Chennai Metro Rail Phase 2 Project (Balance Corridor 5) and US$250 million for Second Dam Rehabilitation and Improvement Project.
AIIB has also participated in the funds of fund of the National Infrastructure Investment Fund of India and invested in a number of private sector developments including renewables and solar plants.
AIIB, formed in Dec 2015, has to date funded sovereign Indian infrastructure projects to the tune of US$10 billion. This works out to more than 20 percent of AIIB’s total infrastructure project funding.
Misra was made it clear that AIIB undertakes a “very thorough due diligence” on each project in evaluating financing viability.
As an insulation against capital market vagaries, AIIB invests in sovereign projects or which are guaranteed by the government. It is also involved in private sector developments such as renewables.
The AAA-rated bank, capitalized at US$20 billion, has rated India as top borrower, followed by China, Turkey, Indonesia and Bangladesh. Fiinews.com
