Asia Climate Bond Tender

Scope The project seeks to address the underdevelopment of the climate bond market in AIIB members through a managed fixed income portfolio of USD500 million. Itexpects to mobilize another USD500 million from climate change-focused institutional investors. The project also seeks to allocatea portion ofthe investment proceeds for market education engagement and issuer support.The projectobjective is to develop the climate bond markets throughtheestablishment of a managed fixed income portfolio.The project seeks outperformance by identifying analyzingand selecting climate championsissuers who are well placed to thrive in the coming climate change environment. Selection of climate champions will be based on the Climate Change Assessment Framework.The Asia Climate Bond Portfolio hasfour main objectives1.Increase climate finance flows for sustainable infrastructure in emerging market EM Asia through the debt capital marketsby identifying and investing in climate champions.2.Create a Climate Change Assessment Framework to assess climate change investment risk and opportunity and fulfill the Paris Agreements objectives.3.Catalyze and mobilize investment from one or more climate change-focused institutional investorswhich will further validate theClimate Change Assessment Framework.4.Provide market education and engage with B-listissuers to support their transformation to become A-list climate champions.Based on estimates from initial analysisthe Project team has estimated the cumulative avoided emissions to be between 200 and 350 total carbon dioxide equivalent avoided emissions per USD1 million per year.In order to monitor the development results of AIIBs investment in the Asia Climate BondPortfolio the following monitoring indicators are being contemplatedTons of carbon dioxide equivalent avoided emissionsfor labeled green bonds.Primary issuanceas percentageof total portfolio assetsunder management AUM.Number of private sector investorsmobilized.Amount of private capital mobilized.Number of B-list climate champions engaged for that year