AIIB approves 1st equity investment, 2 loans for infrastructure projects

The China-initiated Asia Infrastructure Investment Bank (AIIB) on Thursday approved its first equity investment and two loans totaling 324 million U.S. dollars.

The AIIB's board of directors approved the bank's first equity investment of 150 million dollars that will be used to help attract the much needed private investment capital for infrastructure projects in India, according to the press release by the AIIB.

The two loans of 174 million dollars will support transport and power projects in Georgia and Tajikistan.

"Approving our first equity investment is another milestone for the Bank and will enhance our potential to source and fund high quality, private sector projects," said D.J. Pandian, vice president and chief investment officer of the AIIB.

South Korea will host the second annual meeting of the AIIB's board of governors for two days from Friday at the country's southern resort island of Jeju.

The board of directors meeting was held before the annual meeting of governors. The first annual meeting of the board of governors was held in Beijing last year.

Officially launched in January 2016, the Beijing-based AIIB is a multilateral development bank initiated by China and supported by a wide range of countries and regions, which will provide financing for the infrastructure improvement in Asia.

Catalyzing private capital was broadly acknowledged as a critical component to addressing the infrastructure gap in Asia.

The three investments, approved on Thursday, aligned with the AIIB's priorities to support sustainable infrastructure, improve cross-border connectivity and mobilize private capital.