AIIB to invest in IFC fund

BEIJING - The Asian Infrastructure Investment Bank (AIIB) has announced it will invest $150 million in the International Finance Corporation (IFC)'s Emerging Asia Fund to address the infrastructure gap in Asia.

The bank will become one of the fund's biggest investors, according to a statement.

The IFC, a member of the World Bank Group, offers investment and advisory services to help private sector growth and poverty reduction in developing countries.

"To mobilize sufficient funds to address the huge infrastructure needs across Asia, multilateral development institutions must collaborate with each other and a range of other partners," said D.J. Pandian, vice-president and chief investment officer of the AIIB.

Pandian said the bank will continue to work with other international financial institutions to help the region's development.

The AIIB also approved loans of $100 million for an electricity transmission project in India, which will build five lines to optimize the electricity system, improve the generation mix, and better utilize renewable energy resources.

The project will be co-financed by the Asian Development Bank.

Since launching in 2016, the AIIB has approved $3.59 billion for 21 infrastructure projects in 11 countries, with 16 co-financed with other lenders.