A strategic partnership is forged between the Asian Infrastructure Investment Bank (AIIB) and the Aberdeen Standard Investments (ASI) to develop debt capital markets for infrastructure, drive responsible investing in fixed income and build a sustainable ESG ecosystem in emerging markets in Asia.
The partnership entails the US$500 million AIIB Asia ESG Enhanced Credit Managed Portfolio managed by ASI on behalf of AIIB, which will comprise primarily Asian infrastructure related bonds including both green and unlabelled issuances, with ESG factors fully integrated in the investment process and portfolio management.
AIIB Vice President and Chief Investment Officer D.J. Pandian 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. We look forward to partnering with Aberdeen Standard Investments to achieve our shared vision of sustainable capital markets in Asia.”
Additionally, the two companies will work closely on the Sustainable Capital Markets Initiative, which aims to catalyse ESG investing strategies, act as an engine of change to improve ESG standards and build capacity around responsible investing with various market participants including corporate bond issuers, rating agencies and index providers to improve disclosure and expand ESG rating coverage in Emerging Asia.
The projects aim to unlock the potential of ESG investing and mobilise private capital to support Asia’ sustainable development.
Standard Life Aberdeen Chairman Sir Douglas Flint, CBE, mentioned, “The significant need for more infrastructure investment in Asia offers a real opportunity to embed ESG principles, while countries and communities accrue the long-term social and economic value that comes from the asset class.”
The portfolio will be managed by ASI’s Asian fixed income team based in Singapore. It has a strong emphasis on ESG to support AIIB’s mission to improve social and economic outcomes in Asia. All bonds will be screened, assessed and managed in accordance with both AIIB and ASI’s ESG investing principles.
AIIB is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, the organisation began operations in January 2016 and have now grown to 97 approved members worldwide. The party had its first annual meeting outside of Asia, in Luxembourg, on 12-13/7/2019.
Aberdeen Standard Investments is the asset management business of Standard Life Aberdeen plc, an investment company.
