KUALA LUMPUR (Oct 30): The Asian Infrastructure Investment Bank (AIIB) has signed agreements with four local banks to mobilise up to US$6 billion (RM25.19 billion) in financing for sustainable and technology-enabled infrastructure projects across the Asean region. 

The agreements with Malayan Banking Bhd (KL:MAYBANK), CIMB Group Holdings Bhd (KL:CIMB), AMMB Holdings Bhd (KL:AMBANK) and government-owned development financial institution Bank Pembangunan Malaysia Bhd will support investments in key sectors such as renewable energy, power transmission and distribution, transport, digital infrastructure and telecommunications. 

The agreements were signed following the Asean summit in Kuala Lumpur, with an initial term lasting until October 2031, the AIIB said in a statement on Thursday.

The initiative reportedly combines the Malaysian banks’ regional expertise in developing and managing large-scale infrastructure assets with the AIIB’s capacity to provide long-term capital through both debt and equity financing instruments.

“The AIIB is honoured to partner with these leading Malaysian institutions,” said the AIIB's chief investment officer, public sector (Region 1) and financial institutions and funds (global) clients, Kim-See Lim. 

“These agreements reaffirm our shared commitment to financing infrastructure that is green, technology-enabled and regionally connected. We look forward to working together to support resilient and forward-looking infrastructure across the Asean region,” she added.