The Asian Infrastructure Investment Bank (AIIB) and the French Development Agency (Agence Française de Développement or AFD) have signed a strategic Co-Financing Framework Agreement at AIIB’s headquarters.
Read also – ADB to Support Policy Reform to Boost Trade and Competitiveness in Cambodia
It aims to deepen their collaboration in furtherance of common development objectives, promote sustainable development and advance climate-resilient infrastructure projects globally.
Read also – Sylndr Raises USD 7.4 Million Funding led by EFG Hermes
AIIB and AFD have agreed to cofinance agreements under a framework to simplify procedures and enhance the effectiveness and efficiency of their development cooperation. The agreement is the first of its kind between the AFD and a multilateral development bank (MDB) and sets forth a mutual reliance framework that allows both institutions to leverage their comparative advantages in specific sectors or countries.
Over the past years, AIIB and AFD have collaborated on several projects in Egypt, India and Türkiye, primarily through parallel co-financing led by an MDB. Both institutions are committed to delivering impactful solutions to the pressing global challenges of climate change and sustainable development. The two organizations aim to combine their strengths and work together more effectively in project preparation and monitoring, improving the speed and efficacy in responding to client’s needs.
“This partnership with AFD reinforces AIIB’s commitment to ensuring multilateral and public development banks work better together to leverage our respective strengths,” said Jin Liqun, AIIB President and Chair of the Board. “Together, we can more effectively deliver innovative financing solutions and catalyze investments that create long-term value for millions of people for a better tomorrow.”
Rémy Rioux, Chairman of Agence Française de Développement, said: “Our first cofinancing framework agreement paves the way for an impactful collaboration between the two public development banks (PDBs) in support of climate, nature and the Sustainable Development Goals (SDGs). This framework sets also a standard for public development banks. They demonstrate their ability to respond to the G20’s recommendations for a more coherent, collaborative and open financial architecture. This is a shared objective with the global coalition of PDBs, which will gather in Cape Town on 26-28 February 2025 for the Finance in Common Summit with AIIB as co-partner.”
The agreement paves the way for deeper collaboration, enabling AIIB and AFD to play a pivotal role in advancing innovative solutions, mobilizing critical investments and making a meaningful contribution to global efforts toward a greener future.
The announcement builds on the longstanding and strong partnership between AIIB and AFD, including their Memorandum of Understanding signed in June 2023, which outlines the scope of cooperation across areas of common interests; as well as their joint collaboration in the upcoming Fifth Finance in Common (FiCS) Summit.
About AIIB
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is Financing Infrastructure for Tomorrow in Asia and beyond—infrastructure with sustainability at its core. We began operations in Beijing in 2016 and have since grown to 110 approved members worldwide. We are capitalized at USD100 billion and AAA-rated by the major international credit rating agencies. Collaborating with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.
About AFD
AFD Group contributes to the implementation of France’s policies for sustainable development and international solidarity. The Group includes Agence Française de Développement (AFD), which finances the public sector, NGOs, research and training; its subsidiary Proparco, which is dedicated to the private sector; and Expertise France, a technical cooperation agency. The Group finances, supports and accelerates the transitions needed for a fairer, more resilient world.
With our partners, we are building shared solutions with and for the people in more than 150 countries, and in 11 French Overseas Departments and Territories. As part of the commitment of France and the French people to achieving the Sustainable Development Goals, our teams are at work on 4,200 projects in the field. Our objective is to reconcile economic development with the preservation of common goods, from peace, the climate and biodiversity to health, education and gender equality, towards a world in common.
