Bangladesh poised for AIIB's climate finance first

07 Mar '24

1 min read

Pic: AIIB

Insights

Bangladesh likely to become the first recipient of climate finance from the AIIB.
The country currently ranks as the fifth-largest borrower from the AIIB, with approvals totalling around $3.5 billion.
AIIB acting vice-president Rajat Misra expressed willingness to expand lending to Bangladesh substantially during meeting with finance minister.

The Asian Infrastructure Investment Bank (AIIB) is poised to increase financing to Bangladesh in the coming years, with the country likely to become the first recipient of climate finance from the multilateral development bank.

During a recent meeting with finance minister Abul Hassan Mahmood Ali in capital Dhaka, AIIB acting vice-president Rajat Misra expressed willingness to expand lending to Bangladesh substantially.

Bangladesh currently ranks as the fifth-largest borrower from the AIIB, with approvals totalling around $3.5 billion.

Misra emphasised AIIB’s focus on infrastructure financing, aligning with Bangladesh’s rapid infrastructure development, including the new metro rail projects.

Moreover, AIIB is actively developing a policy on climate finance and is in advanced discussions with Bangladesh on a climate finance project.

If approved, this project would mark AIIB’s first venture into climate finance.

Misra highlighted the valuable partnership between AIIB and Bangladesh in both infrastructure and climate finance.

Finance minister Mahmood Ali on his part expressed satisfaction with AIIB’s investment and lending policies, which cater to Bangladesh’s requirements.

The minister emphasised the close collaboration between AIIB and Bangladesh, welcoming the bank’s support in various projects.

Fibre2Fashion News Desk (DR)

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