AIIB, EIB sign accord to jointly finance infrastructure
Two banks to help address global challenges like climate change, sustainable transport and availability of clean water
The European Investment Bank and the Asian Infrastructure Investment Bank on May 30 signed a framework agreement to jointly finance strategically important projects.
"The agreement is crucial to expand our partnership in addressing the monumental infrastructure financing needs around the world," says Jin Liqun, president of the AIIB.
The AIIB was created with the goal of promoting regional cooperation and partnership to address development challenges, he says, adding that joint efforts between the two banks could be a steadying force in a complex global economic environment and create enduring positive developmental results.
Werner Hoyer, president of the EIB, says the two banks share similar business models and he is looking forward to working with the AIIB to address global challenges, in particular programs that will help tackle climate change, ensuring the provision of sustainable transport and clean water.
The two did not provide details, but it is believed the first investment project in which the banks cooperate will be located in India. That's where the EIB decided to provide a 450 million euro ($499 million) long-term loan this year to finance the first metro line in Lucknow, the capital of Uttar Pradesh.
Hoyer says such programs can improve the construction of urban infrastructure and fit his bank's criteria to invest in economically, socially, and ecologically sustainable projects.
"China's Belt and Road Initiative will provide more opportunities along the countries affected to make investments in valuable projects," he says.
The EIB and the AIIB have already established a strong track record of cooperation, including sharing technical and financial expertise.
Hoyer recently made an official visit to China, with a focus on strengthening the EIB's partnership with the country to address climate change.
The EIB is the world's largest lender for climate-related investment and global leader in issuing green bonds. Last year, EIB support for climate finance outside Europe represented 30 percent of overall lending, according to Hoyer.
