Change & Operations
Asian Infrastructure Investment Bank
The Asian Infrastructure Investment Bank (AIIB) engaged actoRx to establish a partial risk guarantee and partial credit guarantee strategy. Deliverables included, in particular, a strategic proposal for the new AIIB guarantee programme based on a demand and supply analysis, as well as a benchmarking with peers. In addition, actoRx delivered a product application for partial debt guarantees and provided further input in order to provide a sound basis for decisions on the product range that were appropriate for AIIB.
Services
Strategy
Change & Operations
Background
Guarantees have a reputation for being market-friendly instruments crowding in private sector financing. The lending decision usually stays with the private lender, also building capacity in sustainable long-term financing through positive signalling. Multilateral development banks, bilateral development finance institutions and export credit agencies guarantee and insure significant amounts in numerous sectors, for example, in infrastructure.
Approach
actoRx supported AIIB to successfully introduce a partial debt (credit) guarantee on loans or bonds, including single unfunded risk sharing for non-sovereign operations. This applied for guarantees and specific debt instruments denominated in USD, other hard, or local currency where the bank was operationally ready. The official launch was communicated at an event with public banks and government agencies at the Bank’s headquarters in Beijing.