The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank (MDB) and an international financial institution, headquartered in Beijing, China. It was first proposed by China in 2013 and formally commenced operations on January 16, 2016, with an initial authorized capital of US$100 billion. The bank was established to address the massive infrastructure funding gap in Asia, which existing institutions were not adequately meeting. China's initiative was also driven by a desire for greater influence in global financial governance, having been frustrated by the slow pace of reforms in the US-dominated World Bank and Asian Development Bank (ADB).
The AIIB's mission is "Financing Infrastructure for Tomorrow," focusing on sustainable development and regional connectivity. Its mechanism involves providing both sovereign-backed and non-sovereign-backed financing, including loans and guarantees, for projects in sectors like energy, transport, and urban development. A key governance feature is its non-resident Board of Directors, intended to be more efficient than the resident boards of older MDBs. The AIIB is connected to China's Belt and Road Initiative (BRI), having been initially conceived as a financing tool for the project. It cooperates with other MDBs, including co-financing projects with the World Bank Group.
In a significant recent change, the AIIB fully operationalized its Paris alignment commitment on July 1, 2023, requiring all new financing operations to align with the Paris Agreement. The bank aims to dedicate over 50% of its annual financing to climate-related investments by 2030. Furthermore, in 2024, it introduced the Climate-Focused Policy-Based Financing (CPBF) instrument and launched its first Health Strategy in December 2024.