AIIB sets up managed credit portfolio to boost ESG standards

The Asian Infrastructure Investment Bank's board of directors has approved $500 million for a managed credit portfolio, which aims to develop infrastructure as an asset class, develop debt capital markets for infrastructure, and promote the integration of Environmental, Social and Governance (ESG) standards in Asian capital markets.

Focusing on infrastructure-related bonds as an asset class, the AIIB Asia ESG Enhanced Credit Managed Portfolio will comprise corporate bonds issued by infrastructure-related issuers, including quasi-sovereign bonds and green bonds, with proceeds directed to sustainable infrastructure and other productive sectors, said the Beijing-headquartered multinational development bank in a statement posted on its website on Wednesday.

At the initial phase of debt capital market development, project bonds and other infrastructure-related fixed income securities are not the focus of this credit portfolio, according to a project summary released by the bank.