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Treasury Overview

AIIB Treasury has been active since 2016. Treasury’s mandate involves funding investment operations, managing capital and debt-funded liquidity, offering financing solutions to clients, as well as overseeing the general banking and treasury risk management operations for AIIB. Core functions include:

Client Solutions

The team is focused on delivering sustainable financing solutions to AIIB sovereign and nonsovereign clients. Products under development include guarantees, local currency lending products, syndications and hedging solutions. These activities are targeted for deployment starting in 2019.

Capital Markets Funding

Over time, AIIB will access the markets via a range of currencies, formats and maturities, to fund AIIB’s general lending operations. All funds raised will be centralized in the AIIB’s Operational Liquidity account.

Liquidity and Investment Management

Treasury overseas AIIB's operational liquidity to ensure sufficient cash flow to meet financial commitment, such as loan disbursements and general operating expenses.  In addition, Treasury proactively manages a portfolio of funds over and above operational liquidity to optimize portfolio returns while ensuring capital preservation. This is executed within clearly defined credit, liquidity and market risk parameters. Investments are diversified across several markets to deliver a favorable risk-return dynamic.

Risk Management and Strategy

Treasury professionals work in partnership with external counterparts to hedge credit, foreign exchange, interest rate and market risk. They are guided by AIIB’s conservative set of financial and risk management policies. Long-term financial planning and modeling are conducted by Treasury’s Strategy team.