India becomes Asian Infrastructure Investment Bank's top market for funding infrastructure projects

SINGAPORE: Given the sheer size of infrastructure development taking place across the country, India has emerged as the biggest project funding market for the Asian Infrastructure Investment Bank (AIIB), a top bank official said on Wednesday. Stating that financing of a lot more new infrastructure projects is under discussion for next year, AIIB South Asia Director General Rajat Misra said, "Lending to India will continue to grow as the bank balance sheet will also grow."

Misra was speaking to PTI on the sidelines of Singapore International Energy Week here.

Formed in December 2015, the AIIB has to date funded sovereign Indian infrastructure projects to the tune of USD 10 billion.

This works out to more than 20 per cent of AIIB's total infrastructure project funding. For this year, the bank has lent more than USD 1.3billion to Indian projects, including USD 438 million for the Chennai Metro Rail Phase 2 Project (Balance Corridor 5) and USD 250 million for the Second Dam Rehabilitation and Improvement Project.

He also pointed out that AIIB has "a very thorough due diligence and each project is evaluated on its viability."

After India, the bank has rated China, Turkey, Indonesia and Bangladesh as top borrowers.