AIIB launches platform to attract institutional investors into Asian infrastructure debt market

The Asian Infrastructure Investment Bank is developing a pooled-capital platform designed to attract insurance companies, pension funds and other institutional investors into Asian infrastructure debt, as the region faces a persistent annual funding gap of up to US$700 billion.

Kim-See Lim, AIIB's chief investment officer, told reporters the initiative remains at a very early stage, with further details expected within six to nine months. The bank plans to bring together a group of like-minded investors to establish common investment terms for infrastructure as an asset class.

Mobilising Private Capital at Scale

Lim made the remarks following a joint private capital mobilisation conference co-hosted by the AIIB and the Hong Kong Monetary Authority on Tuesday. The Beijing-headquartered multilateral lender has mobilised around US$17.5 billion in private capital, both directly and indirectly, from its inception through the end of 2025.

That base, however, needs to expand far more rapidly through the new platform, Lim stressed. "It needs to be done faster and ... on a greater scale," she said.

Bridging a US$1.7 Trillion Need

The initiative responds to Asia's stark infrastructure shortfall. A 2017 report by the Asian Development Bank estimated the region required US$1.7 trillion in annual infrastructure investment through 2030. Lim pointed to a persistent shortfall of up to US$700 billion a year, underscoring the urgency of drawing institutional capital into long-term infrastructure financing.

Source: South China Morning Post