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Free Malaysia Today
5 days ago
- Business
- Free Malaysia Today
China-led development lender plans to open Singapore, HK offices
The AIIB is increasingly seeking out a greater presence beyond its base in Beijing. (Reuters pic) NEW YORK : The Asian Infrastructure Investment Bank (AIIB) is looking to open new offices in Hong Kong and Singapore, according to people familiar with the matter, in a plan that would mark its biggest expansion since beginning operations in Beijing almost a decade ago. The multilateral lender, which had more than US$57 billion in assets at the end of last year, is currently negotiating with relevant parties in the cities to open the offices, the people said, asking not to be named discussing non-public information. The bank may announce the move at its annual meeting in June if it can finalise the host member agreements with their respective governments, according to one person. Set up by China as an alternative to other international financial institutions such as the World Bank, the AIIB is increasingly seeking out a greater presence beyond its base in Beijing to get closer to capital markets. It opened its first overseas office in September 2023 in the UAE capital of Abu Dhabi. During the Covid pandemic, when China effectively closed its borders, the bank found it hard to manage its overseas projects and faced challenges in getting people to move to Beijing to work at the headquarters. The AIIB has roughly doubled the number of member countries to over 100 since being established in 2016. While the US and Japan both declined to join due to concerns that the bank would be controlled by China, American allies in Europe – as well as Canada, Australia and New Zealand – all became members. The Asian Infrastructure Investment Bank's spokesman said the lender is 'exploring options for potentially opening a small number of additional hub offices in Asia and elsewhere' but it hasn't 'made any final decisions'. The AIIB has committed almost US$52 billion in funding to 38 member countries, according to its website, with India the largest single recipient. It reported net profit of more than US$1.1 billion last year and had approved 252 separate projects as of the end of 2023, according to its website. The bank will also elect a new president at the annual meeting in Beijing, with China nominating former vice-finance minister Zou Jiayi for the post. During the inauguration of its outpost in Abu Dhabi, the bank's officials hinted at broader ambitions in expanding its footprint around the world. That new office 'builds proximity to our clients, projects and sustainable development colleagues and allows us to gain valuable experience as we endeavor to expand our offices worldwide' –FILE–Pedestrians walk past the headquarters of the Asian Infrastructure Investment Bank (AIIB) in Beijing, China, 11 December 2017. The China-backed Asian Infrastructure Investment Bank (AIIB) may sell its first U.S.-dollar-denominated bonds to raise at least $1 billion as soon as by the end of June. The earliest issuance window will be ¡°toward the end of the first half of 2018¡± because certain procedures will take time, such as the Board of Governors¡¯ approval of AIIB¡¯s 2017 financial statements as well as borrowing and swap documentation, the official Xinhua News Agency reported on Sunday, citing a statement from Soren Elbech, the Beijing-based bank¡¯s treasurer. Depending on investors¡¯ appetite, the maturity of the bonds will be between three and five years, Elbech said, adding that the bank expects demand to be strong. He added that the bank plans to limit its total borrowing this year to $3 billion. The multilateral development bank, which now has 84 members, has long wanted to sell bonds to international investors, but was constrained by the lack of a credit Use China. No Use France. , Laval Wong Sick Wah, head of office of AIIB's interim operational hub, said at the time.
Bloomberg
5 days ago
- Business
- Bloomberg
China's Answer to World Bank Plans to Open Singapore, HK Offices
The Asian Infrastructure Investment Bank is looking to open new offices in Hong Kong and Singapore, according to people familiar with the matter, in a plan that would mark its biggest expansion since beginning operations in Beijing almost a decade ago. The multilateral lender, which had more than $57 billion in assets at the end of last year, is currently negotiating with relevant parties in the cities to open the offices, the people said, asking not to be named discussing non-public information. The bank may announce the move at its annual meeting in June if it can finalize the host member agreements with their respective governments, according to one person.
