AIIB Approves $8.4B Financing, Signs $400M Climate Loan with Bangladesh

The Asian Infrastructure Investment Bank (AIIB) has allocated $8.4 billion to 51 projects in 2024 across sectors including energy, water, transport, sustainable cities, digital, and social infrastructure, aiming to reduce carbon emissions and enhance access to essential services. Among these, Bangladesh has signed a $400 million loan agreement with AIIB to support the Climate Resilient Inclusive Development Program – Subprogram 2, focused on policy reforms to combat climate change. The program, led by Bangladesh's Finance Division, targets creating an enabling environment for climate priorities, facilitating climate adaptation, and accelerating mitigation measures across government ministries. The loan has a 35-year maturity with a five-year grace period and an interest rate based on the Secured Overnight Financing Rate plus a variable spread. Officials from both Bangladesh and AIIB expressed confidence that this funding will bolster institutional capacity and promote sustainable, climate-conscious development policies. This initiative aligns with AIIB's broader commitment to financing sustainable projects to foster socio-economic resilience and environmental sustainability.