Multicountry: AIIB Venture Capital (“VC”) Investment Program for Green and Technology-Enabled Infrastructure (the “VC Program”)

approved

The proposed VC Program contemplates investing in small-scale VC funds to drive and support the development of innovative technologies and new business models that are central and scalable for green and technology-enabled infrastructure across AIIB members. Through the Program, AIIB has the dual role of a facilitator and an influencer in accelerating the adoption of innovations in promoting sustainable infrastructure. The Program will follow strategy, of investing in small-scale VC funds with reserved funding for follow-on co-investments. The Program will focus on green and infrastructure-related technologies, as well as new business models catalytic to sustainable infrastructure development, contributing to AIIB's mandate of building i4t.  VC investment space is characterized by fast transaction speed, a smaller average ticket size, and a unique risk-return profile. The proposed Program adopts a portfolio-driven approach to mitigate risk through diversification and has established a systematic approach of selectively identifying VC fund managers with rigour as per the pre-defined investment guideline under a proposed streamlined approval process. Implementation Working Group (a coordinated VC dedicated working group)'s live discussion and evaluation process from all relevant departments will be applied, followed by single stage Final IC and President Approval. IWG unanimous no objection is required before proposed VC fund is taken to IC for single review. The program would work to have a diversified portfolio to ensure proper risk allocation across various sectors and geographies.