China infrastructure bank gets Aaa-okay – China’s latest business and technology news

Business & Technology

A summary of the top news in Chinese business and technology for July 7, 2017. Part of the daily SupChina newsletter, a convenient package of China’s business, political, and cultural news delivered to your inbox for free. Subscribe here.

People use an escalator outside the headquarters of ChemChina (China National Chemical Corporation) in Beijing, China, February 4, 2005. REUTERS/Stringer/File Photo

The China-backed Asian Infrastructure Development Bank (AIIB), crucial to the rollout of Belt and Road infrastructure projects, is “a step closer to issuing its first bonds” this week, Caixin reports. Moody’s Investors Service became on June 29 the first international credit ratings firm to give the AIIB an Aaa rating, the “the same level as the World Bank and the Asian Development Bank (ADB), and reflecting its view that the AIIB’s debt would be of the highest quality and carry minimal risk,” Caixin says.

The bank, which opened for business in January 2016 with $100 billion in capital, has been ambitious in its operations even as it awaits formal credit ratings approval. Caixin compares the AIIB with the European Bank for Reconstruction and Development (EBRD), noting that while that bank waited two years after establishment to make its first loan, the AIIB has already “given the go-ahead to 16 projects involving $2.5 billion in loans and equity investment.”