The China-backed Asian Infrastructure Investment Bank (AIIB) has hired Aberdeen Standard Investments (ASI) to manage a US$500m (€444.4m) portfolio of infrastructure-related bonds.
In a joint statement, the duo said the AIIB Asia ESG Enhanced Credit Managed Portfolio managed by ASI on behalf of the Beijing-headquartered bank, will have environmental, social and corporate governance (ESG) factors fully integrated into the investment process and portfolio management.
The portfolio targets Asian infrastructure-related bonds including both green and unlabelled issuances.
DJ Pandian, AIIB vice president and CIO, said: “We believe that institutional investors are a key part of the solution to finance Asia’s infrastructure investment needs over the coming decades.
“Integrating ESG standards into capital markets in Emerging Asia will be important to achieving long-term sustainable development goals.”
Standard Life Aberdeen chairman Douglas Flint, said: “We are truly honoured to be entrusted by AIIB with this important partnership.
“Having been investing in Asia for three decades, Aberdeen Standard Investments shares AIIB’s commitment to deepening the region’s capital markets and building a sustainable ESG ecosystem for investing.”
AIIB also announced today that it has approved a US$75m investment into the Asia Investment Fund (AIF), a closed-end private equity fund that focuses on telecommunication, transportation and energy.
The fund’s target size is US$3bn with a 10-year term from the final closing date.
AIIB currently is the only multilateral investor in AIF, a fund set up with a US$500m initial commitment from the Ministry of Finance of the People’s Republic of China, investing as a limited partner in the fund.