In an exclusive interview, Najeeb Haider, Principal Strategy Officer, Asian Infrastructure Investment Bank (AIIB) tells RAHUL KAMAT about the bank’s future strategies and the key sectors for investments in India.
In the entire process of funding, we have identified a three-tier approach. Given that we are just a two-year-old institution, we have started co-financing projects with other financial institutions like Asian Development Bank, International Finance Corporation etc. In fact, we would continue with this exercise. At present, what we are very focused on is building our own pipeline of transactions. We are structuring such transactions in a manner that we attract private capital to fund sustainable projects.
According to a study by McKinsey, by 2020, over $6 trillion assets will be under management and a small portion is expected to be deployed in infrastructure. So we are working on strategies to encourage institutional investors to invest in emerging markets. Hopefully, our strategies will result in mandates over the coming years. Once we execute these mandates, we believe they will attract another pool of institutional investments.
We have set thematic priorities. Sustainable infrastructure is one priority that is key in selecting our project. The projects have to be economically, environmentally, and socially sustainable. These are some of the key criteria we look at. We also have sector priorities. Energy, transport, and sustainable cities are three sectors we have prioritise. They will grow over time. So, we have a combination of projects in one or two of the categories we are focussed on and also what the country needs. It is the government that has to bring the sustainable projects on table, so that we can take them forward for funding. In India, we have six projects with a commitment of over $1.7 billion.