AIIB grants 1st loan to China to reduce dependence on coal

The Asian Infrastructure Investment Bank (AIIB) 11 December 2017 approved its first loan to China, its largest shareholder, to reduce its dependence on coal by over 600,000 tonnes annually by building a natural gas distribution network for villages. The USD 250-million-loan will fund a project to connect 216,750 households in approximately 510 villages to the natural gas distribution network.

With an authorised capital of USD 100 billion, China is the largest shareholder with 26.06 per cent voting shares. India is the second largest shareholder with 7.5 per cent followed by Russia 5.93 per cent and Germany 4.5 per cent. AIIB President Jin Liqun said Chinas commitment to reducing its reliance on coal will change lives and improve the environment.

It is only fitting that our first investment in China will introduce sustainable infrastructure that will reduce greenhouse gas emissions and help invigorate one of the most important economic hubs in Asia. The investment in the project also marks AIIBs first corporate loan. The project, undertaken by the Beijing Gas Group Company, will entail construction of natural gas distribution networks in villages and low-pressure gas pipelines and household connections

Translate »