SAMARKAND: The ninth annual meeting of the Asian Infrastructure Investment Bank (AIIB) featured a panel discussion titled ‘Mobilizing Private Capital through Capital Market Innovative Instruments,’ which discussed key strategies for attracting private investment in green and climate infrastructure, Trend reports.
Among those who addressed the panel were Najeeb Haider, Director General, Project and Corporate Finance Clients Department, Global AIIB; Antoine Castel, Chief Risk Officer, AIIB; Mae Adel, Advisor to the Minister of Finance for Capital Markets Operations, Ministry of Finance, Egypt; Keith LauHead of Portfolio Management, Infrastructure Financing and Securitisation (IFS) and Stéphane DubosManaging Director, Co-Head of Low Carbon Energies, Natixis.
During the session, participants highlighted that innovative capital market instruments such as asset securitization and project bonds can significantly accelerate capital flows to infrastructure projects in developing countries. These instruments enable t
he redistribution of long-term assets from traditional bank lenders to institutional investors, which in turn stimulates sustainable development.
‘Using capital market instruments to finance the infrastructure gap introduces new complexities and risks due to the involvement of multiple actors’, said panelist Antoine Castel, Chief Risk Officer, AIIB. ‘Therefore, a robust regulatory framework is essential to maintain system stability and efficiency, while protecting the interests of all stakeholders.’
The important role of guarantees in attracting private capital for green and climate projects was also emphasized. Guarantees reduce risks and make projects more attractive to private investors, which is particularly relevant for emerging markets. This approach is fully in line with AIIB’s priorities to mobilize private capital and develop sustainable infrastructure.
‘When we talk about the capital markets I think it’s front and centre what AIIB is focusing on with respect to our strategy of private capital mob
ilisation. Being the only 21st century multilateral development bank, we aim to to be very client focused and respond to our clients requirement and in doing that we also aim to be innovative because we feel if we are to respond to what our clients require in the times that we live in, we need to be innovative, we need to be responsive. At AIIB we have 4 thematic priorities. One of them is private capital mobilisation and it’s very closely linked to the other 3 priorities,’ highlighted moderator Najeeb Haider, AIIB Director General, Project and Corporate Finance Clients Department, Global.
The panel discussion demonstrated how AIIB has successfully used these financial instruments to mobilize capital for both sovereign and non-sovereign partners. Participants noted that these strategies help bridge the financing gap for infrastructure projects, which in turn contributes to long-term sustainable economic growth.
Source: Trend News Agency