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China-led Asian Infrastructure Investment Bank (AIIB) is planning to issue its first US dollar-denominated bond with minimum worth of $1 billion by June 2018.
FACTS FOR PRELIMS
The minimum size of the issuance will be one billion dollars, but as demand for the first bond issue may increase AIIB anticipates of having to issue a larger size.
The maturity of the bond will be between three and five years depending on investor demand at the time. he bank plans to cap its total borrowing volume at US $3 billion dollars in 2018.
AIIB is a multilateral development bank initiated by China. Its purpose is to provide finance to infrastructure development and regional connectivity projects in the Asia-Pacific region. Its goals are to boost economic development in Asia-Pacific region, provide infrastructure, and promote regional cooperation and partnership.
It prioritises investment in energy, power generation, transport, rural infrastructure, environmental protection and logistics in Asia.
It was officially established in December 2015 and opened for business in January 2016. It is headquartered in Beijing. It has an authorised capital of US $100 billion. So far it has 84 members including India.
China is the largest shareholder of AIIB with 26.06% voting shares. India is the second largest shareholder with 7.5% followed by Russia 5.93% and Germany with 4.5%.
SOURCE – INDIAN EXPRESS.