June and July 2017 have been extremely eventful for the AIIB
31 July 2017
The Bank held its 2nd Annual Board of Governors Meeting on Jeju Island, Republic of Korea between 16 and 17 June 2017. The meeting was immediately preceded by the Board of Directors Meeting that was also held on Jeju Island between 14 and 15 June.
The Governors engaged in wide ranging discussions topics that included amongst other investment opportunities in member countries; the promotion of renewable energy; the financing of infrastructure and improved global governance.
A significant achievement at these Meetings was the adoption of the AIIB’s first sector strategy: the Energy Sector Strategy – Sustainable Energy for Asia. The adoption of this pragmatic policy is significant due to its importance as a will guide the Bank support its members’ as they transition to renewable energy. The results were achieved through contact consultation between members as well as two rounds of public consultation over a ten month period.
During the Jeju meeting, the Directors approved four projects totalling US$484 million across three sectors including energy and transport. Thereafter in early July, the Bank a milestone by approving a US$ 329 million on a sole funder basis for a transport sector project in India. This brought total loan projects approved to-date to US$2.83 billion across five sectors in nine Asian countries; a significant achievement for an organisation that is 18 months old.
The three main rating agencies Moody’s Investor Services, Fitch Ratings and S&P Global Ratings then announced the assignment of their highest rating for both the Bank’s long- and short term issuances from. Constant themes across the agencies were the AIIB’s strong capital base; strength of the governance and risk management frameworks; conservative policies; and strong liquidity. S&P Rating further singled out the strength of the Management team who have a significant depth of experience in managing critical departments in Multilateral Institutions.
Continued strong interest to join the AIIB has resulted in membership increasing to 80 as at 5 July 2017. Since March 2017, 23 new prospective members had joined the 57 Founding Members, with the Bank gauging various levels of interest from further new potential members.
Within our constituency, Singapore completed its 12-month rotation as the constituency’s Alternate Director with Vietnam assuming the incoming Alternate Director role for the next 12-months from 1 July 2017. The constituency acknowledged Singapore’s strong contribution to achieving the constituency’s goals and strong contribution to the development of various polices adopted in the last 12 months including the Energy Sector Strategy.