Project Notice |
|
| PNR | 33381 |
| Project Name | Infrastructure Private Capital Mobilization Platform |
| Project Detail | AIIB is considering investing in a new platform business that will purchase infrastructure loans from financial institutions and distribute them to institutional investors through securitization or other formats. This will support private capital mobilization and builds infrastructure as an asset class. The purchase of such loans is predicated on the hypothesis that financial institutions that currently originate and hold such loans to maturity will increasingly be constrained from doing so with the advent of Basel lll regulations. Objective AIIB’s aspirations and objectives for this project are: a. To help develop infrastructure capital markets as an asset class through the creation of investable debt securities in the Asian infrastructure sector: The project’s primary objective is to create debt securities backed by infrastructure loan assets for sale to institutional investors. b. To mobilize a new pool of institutional capital for Asian infrastructure: Banks are a predominant source of private sector financing for infrastructure projects in Asia but are limited in ability to continuously increase such long-term lending due to a preference for shorter maturities as a result of regulatory constraints imposed by Basel III. Institutional investors have significant assets under management that could match the long-term nature of infrastructure assets. The ability to address existing market frictions associated with investing in infrastructure debt would help crowd-in this alternative source of capital. c. To support the recycling of infrastructure lending of banks’ balance sheets: A secondary objective is to provide banks which lend to infrastructure projects a way to free up their balance sheet tied up in infrastructure loans. This can create a positive infrastructure finance loop for banks. With the new platform serving as a reliable off-taker of such loans, banks would be incentivized to redeploy freed up capital to new Asian infrastructure projects. |
| Funded By | Asian Infrastructure Investment Bank (AIIB) |
| Sector | Information Technology |
| Country | China , Eastern Asia |
| Project Value | Plz Refer Document |
Contact Information |
|
| Company Name | Asian Infrastructure Investment Bank (AIIB) |
| Address | Senior Financial Institutions Relationship Officer Email Address Stefen.shin@aiib.org |
| Web Site | https://www.aiib.org/en/projects/proposed/2019/infrastructure-private-capital-mobilization-platform.html |
