The fifth Annual Meeting of the Asian Infrastructure Investment Bank (AIIB) has been launched on July 28, via video conferencing keeping in mind the precautionary steps to be taken in the wake of the global coronavirus pandemic.
Stefen Shin, Principal Investment Officer at the Investment Operation Department at AIIB, said that the Asian Infrastructure Investment Bank (AIIB) is working on a project titled ‘Asia Climate Bond Portfolio’ with an aim to better finance companies that abide by the Paris Agreement. The motive behind the project is to promote climate finance in capital markets.
Speaking about the investment Stefen Shin said, “AIIB is going to invest 500 million (U.S.) dollars into AIIB members across the world and there will be about 40 to 50 bonds that that portfolio will be purchasing.”
He added that the “bonds will have characteristics of having what we called ‘climate champions.’” According to Shin the “climate champions” are companies that do well on the Paris Agreement’s three suggested areas, namely, mitigation, adaptation and resilience.
Shin said because the Paris Agreement started just in 2015 and “there hasn’t been enough time for people to digest the cooperation to really apply throughout their overall cooperative structure.”
Furthermore, the AIIB has closely cooperated with its sister multilateral banks such as the Asian Development Bank and the World Bank to finance the COVID-19 facility.