# EDGAR Filing Document

**Accession Number:** 0001733112
**File Stem:** 0001193125-26-151636
**Filing Date:** 2026-4
**Character Count:** 538153
**Document Hash:** f7e2906af904b2e1657c86da1140a398
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-151636.hdr.sgml**: 20260413

**ACCESSION NUMBER**: 0001193125-26-151636

**CONFORMED SUBMISSION TYPE**: 18-K

**PUBLIC DOCUMENT COUNT**: 8

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260413

**DATE AS OF CHANGE**: 20260410

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Asian Infrastructure Investment Bank
- **CENTRAL INDEX KEY:** 0001733112
- **STANDARD INDUSTRIAL CLASSIFICATION:** FOREIGN GOVERNMENTS [8888]
- **ORGANIZATION NAME:** International Corp Fin
- **EIN:** 000000000

**FILING VALUES:**
- **FORM TYPE:** 18-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 333-228613
- **FILM NUMBER:** 26856253

**BUSINESS ADDRESS:**
- **BUSINESS PHONE:** 86-10-8358-0000

**MAIL ADDRESS:**
- **STREET 1:** AIIB HQ, TOWER A, ASIA FINANCIAL CENTER
- **STREET 2:** NO. 1 TIANCHEN EAST ROAD, CHAOYANG
- **CITY:** BEIJING
- **STATE:** F4
- **ZIP:** 100101

##### [**Table of Contents**](#toc)
**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM 18-K** 

**For Foreign Governments and Political Subdivisions Thereof** 

**ANNUAL REPORT** 

**of** 

## ASIAN INFRASTRUCTURE INVESTMENT BANK
**(Name of Registrant)** 

**Date of end of last fiscal year: December 31, 2025** 

**SECURITIES REGISTERED\*** 

**(As of the close of the fiscal year)** 

---

| | | |
|:---|:---|:---|
| **Title of Issue** | **Amount as to**<br> **Which Registration**<br> **is Effective** | **Names of**<br> **Exchanges on**<br> **Which Registered** |
| N/A | N/A | N/A |

---

**Name and address of person authorized to receive notices** 

**and communications from the Securities and Exchange Commission:** 

**KRYSTIAN CZERNIECKI** 

**Sullivan & Cromwell LLP** 

**Neue Mainzer Strasse 52** 

**60311 Frankfurt am Main, Germany** 

\* The registrant files annual reports on Form 18-K on a voluntary basis.

------

##### [**Table of Contents**](#toc)
**TABLE OF CONTENTS** 

---

| | |
|:---|:---|
|  [EXPLANATORY NOTE](#tx108041_1) | i |
|  [FORM 18-K](#tx108041_2) | i |
|  [SIGNATURE](#tx108041_3) | iv |
|  [EXHIBIT 1 — SCHEDULE OF FUNDED DEBT AT DECEMBER 31, 2025](d108041dex1.htm) |  |
|  [EXHIBIT 2 — FINANCIAL STATEMENTS AS OF AND FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025](d108041dex2.htm) |  |
|  [EXHIBIT 3 — DESCRIPTION OF THE REGISTRANT AND RECENT DEVELOPMENTS](d108041dex3.htm) |  |
|  [EXHIBIT 4 — CONSENT OF PRICEWATERHOUSECOOPERS](d108041dex4.htm) |  |

---

**EXPLANATORY NOTE** 

This annual report on Form 18-K for the fiscal year ended December 31, 2025 is filed by the Asian Infrastructure Investment Bank ("AIIB"), a multilateral development bank established and operating under the Articles of Agreement, an international treaty to which governments are parties and which was open for signature on June 29, 2015 and entered into force on December 25, 2015, with a mandate to (i) foster sustainable economic development, create wealth and improve infrastructure connectivity in Asia by investing in infrastructure and other productive sectors and (ii) promote regional cooperation and partnership in addressing development challenges by working in close collaboration with other multilateral and bilateral development institutions. This annual report on Form 18-K, as subsequently amended, is intended to be incorporated by reference into any future prospectus filed by AIIB with the Securities and Exchange Commission to the extent such prospectus indicates that it intends this report to be incorporated by reference.

**FORM 18-K** 

*The information set forth below is to be furnished:* 

*1.* *In respect of each issue of securities of the registrant registered, a brief statement as to:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *The general effect of any material modifications, not previously reported, of the rights of the holders of such securities.* 

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *The title and the material provisions of any law, decree or administrative action, not previously reported, by reason of which the security is not being serviced in accordance with the terms thereof.* 

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(c)* *The circumstances of any other failure, not previously reported, to pay principal, interest, or any sinking fund or amortization installment.* 

Not applicable.

i

------

##### [**Table of Contents**](#toc)
*2.* *A statement as of the close of the last fiscal year of the registrant giving the total outstanding of:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *Internal funded debt of the registrant. (Total to be stated in the currency of the registrant. If any internal funded debt is payable in foreign currency, it should not be included under this paragraph (a), but under paragraph (b) of this item.)* 

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *External funded debt of the registrant. (Totals to be stated in the respective currencies in which payable. No statement need be furnished as to intergovernmental debt.)* 

See Exhibit 1.

*3.* *A statement giving the title, date of issue, date of maturity, interest rate and amount outstanding, together with the currency or currencies in which payable, of each issue of funded debt of the registrant outstanding as of the close of the last fiscal year of the registrant.* 

See Exhibit 1.

---

| | |
|:---|:---|
| *4. (a)* | *As to each issue of securities of the registrant which is registered, there should be furnished a break-down of the total amount outstanding, as shown in Item 3, into the following:*  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(1)* *Total amount held by or for the account of the registrant.* 

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(2)* *Total estimated amount held by nationals of the registrant (or if registrant is other than a national government by the nationals of its national government); this estimate need be furnished only if it is practicable to do so.* 

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(3)* *Total amount otherwise outstanding.* 

See Exhibit 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *If a substantial amount is set forth in answer to paragraph (a)(1) above, describe briefly the method employed by the registrant to reacquire such securities.* 

Not applicable.

*5.* *A statement as of the close of the last fiscal year of the registrant giving the estimated total of:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *Internal floating indebtedness of the registrant. (Total to be stated in the currency of the registrant.)* 

Not applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *External floating indebtedness of the registrant. (Total to be stated in the respective currencies in which payable.)* 

See Exhibit 1.

*6.* *Statements of the receipts, classified by source, and of the expenditures, classified by purpose, of the registrant for each fiscal year of the registrant ended since the close of the latest fiscal year for which such information was previously reported. These statements should be so itemized as to be reasonably informative and should cover both ordinary and extraordinary receipts and expenditures; there should be indicated separately, if practicable, the amount of receipts pledged or otherwise specifically allocated to any issue registered, indicating the issue.* 

See Exhibit 2.

ii

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##### [**Table of Contents**](#toc)

---

| | |
|:---|:---|
| *7. (a)* | *If any foreign exchange control, not previously reported, has been established by the registrant (or if the registrant is other than a national government, by its national government), briefly describe such foreign exchange control.*  |

---

None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any foreign exchange control previously reported has been discontinued or materially modified, briefly describe the effect on any such action, not previously reported.

Not applicable.

Unless otherwise expressly indicated, references contained in any exhibit to this annual report on Form 18-K to websites or documents, including where a link is provided, are textual references only and information in or accessible through such websites or documents does not form part of and is not incorporated in this annual report on Form 18-K.

*This annual report comprises:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *The cover page and pages numbered i to v consecutively.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The following exhibits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Schedule of funded debt at December 31, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Financial statements as of and for the year ended December 31, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Description of the registrant and recent developments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Consent of PricewaterhouseCoopers

This annual report is filed subject to the Instructions for Form 18-K for Foreign Governments and Political Subdivisions Thereof.

iii

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##### [**Table of Contents**](#toc)
**SIGNATURE** 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this annual report to be signed on its behalf by the undersigned, thereunto duly authorized, at Beijing, People's Republic of China, on the 10th day of April, 2026.

---

| | |
|:---|:---|
| ASIAN INFRASTRUCTURE INVESTMENT BANK | ASIAN INFRASTRUCTURE INVESTMENT BANK |
| By: | /s/ Domenico Nardelli |
| Name: | Domenico Nardelli |
| Title: | Acting Chief Financial Officer |

---

iv

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##### [**Table of Contents**](#toc)
**EXHIBIT INDEX** 

---

| | |
|:---|:---|
| **Exhibit**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Number** | **Description** |
| 1. | [Schedule of funded debt at December 31, 2025](d108041dex1.htm) |
| 2. | [Financial statements as of and for the year ended December 31, 2025](d108041dex2.htm) |
| 3. | [Description of the registrant and recent developments](d108041dex3.htm) |
| 4. | [Consent of PricewaterhouseCoopers](d108041dex4.htm) |

---

v

## Ex-1

**Exhibit 1** 

SCHEDULE OF FUNDED DEBT AT DECEMBER 31, 2025

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Currency** | **Value Date** | **Interest %** | **Maturity Date** | **Initial amount in<br>currency of<br>borrowing (in<br>millions)** | **Amount<br>outstanding in<br>currency of<br>borrowing (in<br>millions)** | **Amount<br>outstanding in<br>millions of U.S.<br>dollars <sup>(1)</sup>** |
| &nbsp;&nbsp;&nbsp; U.S. dollars | January 27, 2021 | 0.500 | January 27, 2026 | 3000 | 3000 | 3000 |
| &nbsp;&nbsp;&nbsp; Indonesian rupiah | February 10, 2021 | 4.500 | February 10, 2026 | 500000 | 267000 | 16 |
| &nbsp;&nbsp;&nbsp; Indian rupee | February 10, 2021 | 5.000 | February 10, 2026 | 2500 | 1220 | 14 |
| &nbsp;&nbsp;&nbsp; Mexican pesos | March 10, 2021 | 5.000 | March 5, 2026 | 500 | 152 | 8 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | April 15, 2021 | Floating Rate | April 15, 2026 | 500 | 500 | 500 |
| &nbsp;&nbsp;&nbsp; Australian dollars | May 6, 2021 | 1.000 | May 6, 2026 | 500 | 500 | 334 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | December 1, 2021 | Floating Rate | April 15, 2026 | 200 | 200 | 200 |
| &nbsp;&nbsp;&nbsp; Indian rupee | December 8, 2021 | 6.000 | December 8, 2031 | 1500 | 1500 | 17 |
| &nbsp;&nbsp;&nbsp; Australian dollars | January 18, 2022 | 1.900 | January 18, 2027 | 500 | 500 | 334 |
| &nbsp;&nbsp;&nbsp; Pound sterling | January 20, 2022 | 1.125 | September 15, 2026 | 500 | 500 | 672 |
| &nbsp;&nbsp;&nbsp; Indian rupee | January 25, 2022 | 5.750 | January 25, 2027 | 5000 | 5000 | 56 |
| &nbsp;&nbsp;&nbsp; Philippine pesos | January 27, 2022 | 4.250 | January 27, 2027 | 3800 | 2700 | 46 |
| &nbsp;&nbsp;&nbsp; Euro | April 25, 2022 | 0.973 | April 26, 2027 | 150 | 150 | 176 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | June 10, 2022 | 3.020 | June 10, 2027 | 250 | 250 | 250 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | August 16, 2022 | Floating Rate | August 16, 2027 | 500 | 500 | 500 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | August 17, 2022 | 3.150 | August 17, 2027 | 150 | 150 | 150 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | September 14, 2022 | 3.750 | September 14, 2027 | 2000 | 2000 | 2000 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | September 16, 2022 | 2.910 | September 16, 2026 | 350 | 350 | 50 |
| &nbsp;&nbsp;&nbsp; Indian rupee | September 16, 2022 | 6.000 | December 8, 2031 | 1000 | 1000 | 11 |
| &nbsp;&nbsp;&nbsp; Indian rupee | September 27, 2022 | 6.000 | December 8, 2031 | 1100 | 1100 | 12 |
| &nbsp;&nbsp;&nbsp; Turkish lira | September 29, 2022 | 30.000 | September 29, 2027 | 500 | 500 | 12 |
| &nbsp;&nbsp;&nbsp; Australian dollars | December 15, 2022 | 1.900 | January 18, 2027 | 50 | 50 | 33 |
| &nbsp;&nbsp;&nbsp; Pound sterling | January 11, 2023 | 4.375 | June 11, 2026 | 650 | 650 | 873 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | January 18, 2023 | 4.000 | January 18, 2028 | 2000 | 2000 | 2000 |
| &nbsp;&nbsp;&nbsp; Indian rupee | January 20, 2023 | 6.000 | December 8, 2031 | 900 | 900 | 10 |
| &nbsp;&nbsp;&nbsp; Pound sterling | January 30, 2023 | 4.375 | June 11, 2026 | 100 | 100 | 134 |
| &nbsp;&nbsp;&nbsp; Mexican pesos | February 2, 2023 | Zero Coupon | February 2, 2043 | 2700 | 2700 | 150 |
| &nbsp;&nbsp;&nbsp; Pound sterling | February 6, 2023 | 4.375 | June 11, 2026 | 250 | 250 | 336 |
| &nbsp;&nbsp;&nbsp; Indian rupee | February 6, 2023 | 6.000 | December 8, 2031 | 2500 | 2500 | 28 |
| &nbsp;&nbsp;&nbsp; South African rand | February 8, 2023 | 7.500 | February 8, 2028 | 500 | 500 | 30 |

---

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; Mexican pesos | February 8, 2023 | Zero Coupon | February 8, 2038 | 4000 | 222 |
| &nbsp;&nbsp;&nbsp; Euro | February 14, 2023 | 3.000 | February 14, 2028 | 1500 | 1758 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | March 13, 2023 | Floating Rate | August 16, 2027 | 50 | 50 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | March 16, 2023 | 4.480 | March 16, 2028 | 150 | 150 |
| &nbsp;&nbsp;&nbsp; Philippine pesos | March 17, 2023 | 4.250 | January 27, 2027 | 1100 | 19 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | April 17, 2023 | 2.665 | April 17, 2026 | 500 | 72 |
| &nbsp;&nbsp;&nbsp; Polish złoty | April 17, 2023 | 6.000 | April 17, 2028 | 100 | 28 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | April 26, 2023 | 2.930 | April 26, 2028 | 1500 | 215 |
| &nbsp;&nbsp;&nbsp; Mexican pesos | May 4, 2023 | Zero Coupon | May 4, 2043 | 2000 | 111 |
| &nbsp;&nbsp;&nbsp; Australian dollars | May 17, 2023 | 4.000 | May 17, 2028 | 500 | 334 |
| &nbsp;&nbsp;&nbsp; Indian rupee | June 13, 2023 | 6.000 | December 8, 2031 | 1600 | 18 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | June 14, 2023 | 2.700 | June 14, 2028 | 2500 | 358 |
| &nbsp;&nbsp;&nbsp; Swiss franc | June 26, 2023 | 1.750 | June 26, 2030 | 200 | 252 |
| &nbsp;&nbsp;&nbsp; Indian rupee | June 30, 2023 | 6.650 | June 30, 2033 | 4500 | 50 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | July 14, 2023 | 2.600 | July 14, 2027 | 300 | 43 |
| &nbsp;&nbsp;&nbsp; Hong Kong dollars | August 24, 2023 | 4.260 | August 24, 2026 | 200 | 26 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | September 1, 2023 | 2.570 | September 1, 2026 | 300 | 43 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | September 14, 2023 | 4.875 | September 14, 2026 | 2000 | 2000 |
| &nbsp;&nbsp;&nbsp; Mexican pesos | September 28, 2023 | Zero Coupon | May 4, 2043 | 1300 | 72 |
| &nbsp;&nbsp;&nbsp; Pound sterling | January 11, 2024 | 4.000 | July 22, 2027 | 500 | 672 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | January 18, 2024 | 4.125 | January 18, 2029 | 3000 | 3000 |
| &nbsp;&nbsp;&nbsp; Hong Kong dollars | January 25, 2024 | 3.643 | January 25, 2027 | 500 | 64 |
| &nbsp;&nbsp;&nbsp; Indian rupee | January 25, 2024 | 7.200 | January 25, 2029 | 4500 | 50 |
| &nbsp;&nbsp;&nbsp; Pound sterling | February 1, 2024 | 4.000 | July 22, 2027 | 100 | 134 |
| &nbsp;&nbsp;&nbsp; Hong Kong dollars | February 6, 2024 | 3.675 | February 6, 2027 | 700 | 90 |
| &nbsp;&nbsp;&nbsp; Pound sterling | February 9, 2024 | 4.000 | July 22, 2027 | 150 | 201 |
| &nbsp;&nbsp;&nbsp; Indian rupee | March 1, 2024 | 7.000 | March 1, 2029 | 20000 | 223 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | March 7, 2024 | 2.330 | March 7, 2027 | 3000 | 429 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | March 13, 2024 | 4.250 | March 13, 2034 | 1250 | 1250 |
| &nbsp;&nbsp;&nbsp; Hong Kong dollars | March 22, 2024 | 3.945 | March 22, 2027 | 300 | 39 |
| &nbsp;&nbsp;&nbsp; Hong Kong dollars | April 15, 2024 | 4.015 | April 15, 2027 | 300 | 39 |
| &nbsp;&nbsp;&nbsp; Hong Kong dollars | April 23, 2024 | 4.180 | April 23, 2027 | 300 | 39 |
| &nbsp;&nbsp;&nbsp; Indian rupee | April 26, 2024 | 6.650 | June 30, 2033 | 4500 | 50 |
| &nbsp;&nbsp;&nbsp; Indian rupee | May 2, 2024 | 7.000 | March 1, 2029 | 5000 | 56 |
| &nbsp;&nbsp;&nbsp; Hong Kong dollars | May 17, 2024 | 3.675 | February 6, 2027 | 170 | 22 |
| &nbsp;&nbsp;&nbsp; Hong Kong dollars | May 22, 2024 | 4.035 | May 22, 2027 | 300 | 39 |
| &nbsp;&nbsp;&nbsp; Euro | May 23, 2024 | 2.875 | May 23, 2031 | 1000 | 1172 |
| &nbsp;&nbsp;&nbsp; Indian rupee | June 3, 2024 | 7.000 | March 1, 2029 | 5000 | 56 |

---

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; Indian rupee | June 12, 2024 | 6.650 | June 30, 2033 | 7000 | 78 |
| &nbsp;&nbsp;&nbsp; Mexican pesos | June 21, 2024 | Zero Coupon | June 21, 2044 | 5000 | 278 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | June 27, 2024 | 2.960 | June 27, 2034 | 1000 | 143 |
| &nbsp;&nbsp;&nbsp; Indian rupee | July 2, 2024 | 7.200 | July 2, 2031 | 4500 | 50 |
| &nbsp;&nbsp;&nbsp; Indian rupee | July 15, 2024 | 6.650 | June 30, 2033 | 5000 | 56 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | July 30, 2024 | 2.960 | June 27, 2034 | 700 | 100 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | July 31, 2024 | 2.885 | July 31, 2034 | 588 | 84 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | August 6, 2024 | 2.900 | August 6, 2034 | 400 | 57 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | August 22, 2024 | 4.000 | January 15, 2027 | 300 | 300 |
| &nbsp;&nbsp;&nbsp; Hong Kong dollars | August 22, 2024 | 3.018 | August 22, 2029 | 400 | 51 |
| &nbsp;&nbsp;&nbsp; Hong Kong dollars | August 27, 2024 | 3.085 | August 27, 2028 | 400 | 51 |
| &nbsp;&nbsp;&nbsp; Indian rupee | August 29, 2024 | 7.200 | July 2, 2031 | 5500 | 61 |
| &nbsp;&nbsp;&nbsp; Hong Kong dollars | October 16, 2024 | 3.226 | October 16, 2027 | 300 | 39 |
| &nbsp;&nbsp;&nbsp; Hong Kong dollars | October 18, 2024 | 3.225 | October 18, 2029 | 300 | 39 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | October 21, 2024 | 2.050 | October 21, 2029 | 3000 | 429 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | October 23, 2024 | 4.000 | January 15, 2027 | 200 | 200 |
| &nbsp;&nbsp;&nbsp; Indian rupee | October 23, 2024 | 6.900 | October 23, 2034 | 8500 | 95 |
| &nbsp;&nbsp;&nbsp; Hong Kong dollars | October 30, 2024 | 3.275 | October 30, 2029 | 300 | 39 |
| &nbsp;&nbsp;&nbsp; Hong Kong dollars | October 31, 2024 | 3.278 | October 29, 2027 | 160 | 21 |
| &nbsp;&nbsp;&nbsp; Turkish lira | November 15, 2024 | Zero Coupon | November 15, 2029 | 2000 | 47 |
| &nbsp;&nbsp;&nbsp; Vietnamese dong | December 4, 2024 | 5.500 | December 4, 2026 | 400000 | 16 |
| &nbsp;&nbsp;&nbsp; Pound sterling | January 10, 2025 | 4.375 | October 22, 2029 | 500 | 672 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | January 10, 2025 | 2.475 | January 10, 2035 | 100 | 14 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | January 13, 2025 | 2.450 | January 13, 2035 | 400 | 57 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | January 14, 2025 | 2.480 | January 14, 2035 | 200 | 29 |
| &nbsp;&nbsp;&nbsp; Indian rupee | January 14, 2025 | 6.960 | January 14, 2035 | 6000 | 67 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | January 16, 2025 | 4.500 | January 16, 2030 | 2000 | 2000 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | January 16, 2025 | Zero Coupon | January 16, 2031 | 1200 | 172 |
| &nbsp;&nbsp;&nbsp; Australian dollars | January 21, 2025 | 4.600 | January 21, 2030 | 500 | 334 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | January 22, 2025 | 2.440 | January 22, 2035 | 200 | 29 |
| &nbsp;&nbsp;&nbsp; Indian rupee | January 23, 2025 | 7.000 | January 23, 2032 | 9000 | 100 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | January 24, 2025 | Zero Coupon | January 24, 2031 | 800 | 115 |
| &nbsp;&nbsp;&nbsp; Turkish lira | February 3, 2025 | 30.000 | September 29, 2027 | 1500 | 35 |
| &nbsp;&nbsp;&nbsp; Swiss franc | February 10, 2025 | 0.745 | February 10, 2033 | 100 | 126 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | February 14, 2025 | 2.500 | February 14, 2035 | 200 | 29 |
| &nbsp;&nbsp;&nbsp; Mexican pesos | February 21, 2025 | Zero Coupon | February 21, 2045 | 5000 | 278 |
| &nbsp;&nbsp;&nbsp; Hong Kong dollars | February 26, 2025 | 3.847 | February 26, 2028 | 4000 | 514 |
| &nbsp;&nbsp;&nbsp; Vietnamese dong | February 27, 2025 | 6.750 | February 27, 2026 | 300000 | 12 |

---

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---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; Hungarian forint | April 8, 2025 | 6.130 | March 31, 2026 | 2800 | 9 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | April 29, 2025 | 4.375 | April 29, 2032 | 60 | 60 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | April 30, 2025 | 4.883 | April 30, 2035 | 100 | 100 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | May 6, 2025 | 4.670 | May 6, 2032 | 50 | 50 |
| &nbsp;&nbsp;&nbsp; Euro | May 14, 2025 | 2.625 | May 14, 2032 | 1000 | 1172 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | May 20, 2025 | 4.410 | May 20, 2032 | 70 | 70 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | May 20, 2025 | 4.740 | May 20, 2032 | 50 | 50 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | May 20, 2025 | 4.740 | May 20, 2032 | 45 | 45 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | May 20, 2025 | 5.012 | May 20, 2035 | 100 | 100 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | May 21, 2025 | 4.500 | May 21, 2035 | 1000 | 1000 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | May 27, 2025 | 5.040 | May 27, 2035 | 20 | 20 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | July 10, 2025 | 4.500 | July 10, 2035 | 20 | 20 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | July 10, 2025 | 4.600 | July 10, 2035 | 80 | 80 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | July 14, 2025 | 1.640 | July 14, 2027 | 2000 | 286 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | July 14, 2025 | 5.210 | July 14, 2045 | 100 | 100 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | August 7, 2025 | 1.945 | August 7, 2035 | 700 | 100 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | August 11, 2025 | 1.945 | August 11, 2035 | 700 | 100 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | September 10, 2025 | 3.625 | September 15, 2028 | 2000 | 2000 |
| &nbsp;&nbsp;&nbsp; Georgian lari | September 17, 2025 | Floating Rate | September 17, 2030 | 40 | 15 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | October 9, 2025 | 4.300 | October 9, 2035 | 100 | 100 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | October 30, 2025 | 4.145 | October 30, 2035 | 100 | 100 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | October 30, 2025 | 4.180 | October 30, 2035 | 90 | 90 |
| &nbsp;&nbsp;&nbsp; Turkish lira | November 18, 2025 | Zero Coupon | November 18, 2027 | 7700 | 179 |
| &nbsp;&nbsp;&nbsp; **Total <sup>(2)(3)</sup>** |  |  |  |  | 38054 |

---

Notes:

(1) The amount outstanding in millions of U.S. dollars is computed using the exchange rate at December 31,
2025. (2) The figures included in this schedule do not include premiums, discounts and other accounting adjustments that
are included in the total amount of borrowings in the Statement of Financial Position of the Asian Infrastructure Investment Bank ("AIIB") as at December 31, 2025, which is included in the audited financial statements for the year
ended December 31, 2025 in Exhibit 2 of this annual report on Form 18-K.

(3) Totals in this schedule may not sum exactly due to rounding differences.

------

SCHEDULE OF ANNUAL AMORTIZATION OF FUNDED DEBT OUTSTANDING AT DECEMBER 31, 2025

(IN MILLIONS OF U.S. DOLLARS)<sup>(1)</sup>

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**Currency** | **2026** | **2027** | **2028** | **2029** | **2030** | **2031 and after** | **Total<sup>(2)</sup>** |
| &nbsp;&nbsp;&nbsp; Australian dollars | 334 | 368 | 334 |  | 334 |  | 1370 |
| &nbsp;&nbsp;&nbsp; Chinese yuan | 165 | 758 | 572 | 429 |  | 1029 | 2954 |
| &nbsp;&nbsp;&nbsp; Euro |  | 176 | 1758 |  |  | 2345 | 4279 |
| &nbsp;&nbsp;&nbsp; Georgian lari |  |  |  |  | 15 |  | 15 |
| &nbsp;&nbsp;&nbsp; Hong Kong dollars | 26 | 389 | 565 | 128 |  |  | 1109 |
| &nbsp;&nbsp;&nbsp; Hungarian forint | 9 |  |  |  |  |  | 9 |
| &nbsp;&nbsp;&nbsp; Indian rupee | 14 | 56 |  | 384 |  | 702 | 1156 |
| &nbsp;&nbsp;&nbsp; Indonesian rupiah | 16 |  |  |  |  |  | 16 |
| &nbsp;&nbsp;&nbsp; Mexican pesos | 8 |  |  |  |  | 1111 | 1119 |
| &nbsp;&nbsp;&nbsp; Philippine pesos |  | 64 |  |  |  |  | 64 |
| &nbsp;&nbsp;&nbsp; Polish złoty |  |  | 28 |  |  |  | 28 |
| &nbsp;&nbsp;&nbsp; Pound sterling | 2015 | 1007 |  | 672 |  |  | 3693 |
| &nbsp;&nbsp;&nbsp; South African rand |  |  | 30 |  |  |  | 30 |
| &nbsp;&nbsp;&nbsp; Swiss franc |  |  |  |  | 252 | 126 | 378 |
| &nbsp;&nbsp;&nbsp; Turkish lira |  | 226 |  | 47 |  |  | 272 |
| &nbsp;&nbsp;&nbsp; U.S. dollars | 5700 | 3450 | 4150 | 3000 | 2000 | 3235 | 21535 |
| &nbsp;&nbsp;&nbsp; Vietnamese dong | 28 |  |  |  |  |  | 28 |
| &nbsp;&nbsp;&nbsp; **Total<sup>(2)(3)</sup>** | 8313 | 6494 | 7438 | 4660 | 2601 | 8548 | 38054 |

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Notes:

(1) Amounts outstanding in millions of U.S. dollars is computed using the exchange rate at December 31, 2025.

(2) Totals in this schedule may not sum exactly due to rounding differences.

(3) The figures included in this schedule do not include premiums, discounts and other accounting adjustments that
are included in the total amount of borrowings in AIIB's Statement of Financial Position as at December 31, 2025, which is included in the audited financial statements for the year ended December 31, 2025 in Exhibit 2 of this annual
report on Form 18-K.

## Ex-2

**Exhibit 2** 

**Asian Infrastructure Investment Bank** 

**Auditor's Report and Financial Statements** 

**for the Year Ended Dec. 31, 2025** 

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**Contents** 

Management's Report Regarding the Effectiveness of Internal Control over Financial Reporting

Auditor's Report Regarding the Management's Assessment of Effectiveness of Internal Control over Financial Reporting

Auditor's Report Regarding the Financial Statements

Financial Statements

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| | | |
|:---|:---|:---|
| Statement of Comprehensive Income | Statement of Comprehensive Income | 1 |
| Statement of Financial Position | Statement of Financial Position | 2 |
| Statement of Changes in Equity | Statement of Changes in Equity | 3 |
| Statement of Cash Flows | Statement of Cash Flows | 4 |
| Notes to the Financial Statements | Notes to the Financial Statements | 5-88 |
| A. | General Information | 5 |
| B. | Accounting Policies | 6-18 |
| C. | Disclosure Notes | 19-45 |
| D. | Financial Risk Management | 46-83 |
| E. | Fair Value Disclosures | 84-88 |

---

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**Asian Infrastructure Investment Bank** 

**Management's Report Regarding the Effectiveness of Internal Control over Financial Reporting for the year ended Dec. 31, 2025** 

**Responsibility for Financial Reporting** 

**Management's responsibility** 

***Management's report regarding the effectiveness of internal control over financial reporting***

The Management of the Asian Infrastructure Investment Bank ("the Bank") is responsible for the preparation, integrity, and fair presentation of its published financial statements and associated disclosures for the year ended Dec. 31, 2025. The financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards").

The financial statements have been audited by an independent audit firm, which has been given unrestricted access to all financial records and related data, including minutes of all meetings of the Board of Directors and committees of the Board. Management believes that all representations made to the external auditor during its audit were valid and appropriate. The external auditor's report accompanies the audited financial statements.

Management is responsible for establishing, implementing and maintaining effective internal control over financial reporting for financial presentation and measurement in conformity with IFRS Accounting Standards. The system of internal control contains monitoring mechanisms, and actions are taken to correct deficiencies identified. Management believes that internal control over financial reporting – which are subject to scrutiny and testing by Management and are revised, as considered necessary, taking account of any related internal audit recommendations – support the integrity and reliability of the financial statements.

However, even an effective internal control system has inherent limitations, including the possibility of human error and the circumvention of overriding controls. Therefore, it can only provide reasonable assurance with respect to the preparation of financial statements. Furthermore, the effectiveness of an internal control system can change with circumstances, such as changes in business and operating environment, including the increased relevance of technology and considerations on outsourcing of functions/systems/platforms.

The Bank's Board of Directors has appointed an Audit and Risk Committee, which assists the Board in its responsibility to ensure the soundness of the Bank's accounting practices and the effective implementation of the internal control that Management has established relating to finance and accounting matters. The Audit and Risk Committee comprises members of the Board of Directors and external members. The Audit and Risk Committee meets periodically with Management to review and monitor the financial, accounting and auditing procedures of the Bank and its financial reports, and reviews the scope of work and the effectiveness of the internal audit function and internal control system. The external auditor and the internal auditor regularly meet with the Audit and Risk Committee to discuss the adequacy of internal control over financial reporting and any other matters that they believe should be brought to the attention of the Audit and Risk Committee.

The Bank's assessment of the effectiveness of internal control over financial reporting as at Dec. 31, 2025 was based on the criteria established in the Internal Control Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, Management asserts that as at Dec. 31, 2025, the Bank maintained effective internal control over its financial reporting as set out in the financial statements for the year ended Dec. 31, 2025.

I

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**Asian Infrastructure Investment Bank** 

**Management's Report Regarding the Effectiveness of Internal Control over Financial Reporting for the year ended Dec. 31, 2025** 

The Bank's external auditor has provided an audit opinion on the fair presentation of the financial statements for the year ended Dec. 31, 2025. In addition, it has issued an attestation report on Management's assessment of the Bank's internal control over financial reporting as at Dec. 31, 2025.

Asian Infrastructure Investment Bank

Beijing

March 24, 2026

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| | |
|:---|:---|
| /s/ Zou Jiayi | /s/ Domenico Nardelli |
| Zou Jiayi | Domenico Nardelli |
| President | Acting Chief Financial Officer and Treasurer |
|  | /s/ Hui Fong Lee |
|  | Hui Fong Lee |
|  | Controller |

---

II

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![LOGO](g108041pwc.jpg)

**Independent Auditor's Assurance Report** 

To the Board of Governors of the Asian Infrastructure Investment Bank:

We have been engaged to perform a reasonable assurance engagement on the accompanying management's assessment that the Asian Infrastructure Investment Bank (AIIB or the Bank) maintained effective internal control over financial reporting as at December 31, 2025.

**AIIB's Responsibilities** 

AIIB is responsible for the preparation of the management's assessment that the Bank maintained effective internal control over financial reporting as at December 31, 2025 in accordance with the criteria established in the "Internal Control – Integrated Framework" (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). This responsibility includes designing, implementing and maintaining internal control as AIIB determines are necessary to enable the preparation of management's assessment that the Bank maintained effective internal control over financial reporting as at December 31, 2025.

**Our Independence and Quality Management** 

We have complied with the independence and other ethical requirements of the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

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| | |
|:---|:---|
|  | PricewaterhouseCoopers |
|  | 22/F Prince's Building, Central |
|  | Hong Kong SAR, China |
| **www.pwchk.com** | T: +852 2289 8888, F: +852 2810 9888 |

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Our firm applies International Standard on Quality Management, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

**Auditor's Responsibilities** 

It is our responsibility to express an opinion on the management's assessment that the Bank maintained effective internal control over financial reporting as at December 31, 2025 based on our work performed.

We conducted our work in accordance with International Standard on Assurance Engagements 3000 (Revised) "Assurance Engagements Other Than Audits or Reviews of Historical Financial Information". This standard requires that we plan and perform our work to form the opinion.

A reasonable assurance engagement involves performing procedures to obtain sufficient appropriate evidence as to whether the management's assessment that the Bank maintained effective internal control over financial reporting as at December 31, 2025 is properly prepared, in all material respects, in accordance with "Internal Control – Integrated Framework" (2013) issued by COSO. The extent of procedures selected depends on the auditor's judgment and our assessment of the engagement risk. Within the scope of our work we performed amongst others the following procedures: planning and performing the engagement to obtain evidence to support our assurance opinion; forming an independent opinion, based on the procedures we have performed and the evidence we have obtained; and reporting our conclusion to the Board of Governors of the Bank.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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**Inherent Limitation** 

We draw attention to the fact that because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

**Opinion** 

In our opinion, the management's assessment that the Bank maintained effective internal control over financial reporting as at December 31, 2025 is properly prepared, in all material respects, in accordance with "Internal Control – Integrated Framework" (2013) issued by COSO.

**Purpose and Restriction on Use** 

We draw attention to the fact that the management's assessment that the Bank maintained effective internal control over financial reporting as at December 31, 2025 was prepared for reporting on management's assertion with regards to the effectiveness of the Bank's internal controls over financial reporting using "Internal Control – Integrated Framework" (2013) issued by COSO designed for this purpose. As a result, the management's assessment that the Bank maintained effective internal control over financial reporting as at December 31, 2025 may not be suitable for another purpose. This report is intended solely for the Board of Governors of AIIB in connection with reporting on management's assertion with regards to the effectiveness of the Bank's internal controls over financial reporting and should not be used for any other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. Our opinion is not modified in respect of this matter.

/s/ PricewaterhouseCoopers

**PricewaterhouseCoopers** 

Certified Public Accountants

Hong Kong, China, March 24, 2026

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![LOGO](g108041pwc.jpg)

**Independent Auditor's Report** 

To the Board of Governors of the Asian Infrastructure Investment Bank:

**Opinion** 

*What we have audited* 

The financial statements of Asian Infrastructure Investment Bank (the "Bank"), which are set out on pages 1 to 88, comprise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the statement of comprehensive income for the year ended December 31, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the statement of financial position as at December 31, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the statement of changes in equity for the year ended December 31, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the statement of cash flows for the year ended December 31, 2025; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the notes to the financial statements, comprising material accounting policy information and other explanatory
information.

*Our opinion* 

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Bank as at December 31, 2025, and its financial performance and its cash flows for the year then ended in accordance with IFRS Accounting Standards.

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| | |
|:---|:---|
|  | PricewaterhouseCoopers |
|  | 22/F Prince's Building, Central |
|  | Hong Kong SAR, China |
| **www.pwchk.com** | T: +852 2289 8888, F: +852 2810 9888 |

---

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**Basis for Opinion** 

We conducted our audit in accordance with International Standards on Auditing ("ISAs"). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

*Independence* 

We are independent of the Bank in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) as issued by the International Ethics Standards Board for Accountants ("IESBA Code"), as applicable to audits of financial statements of public interest entities. We have also fulfilled our other ethical responsibilities in accordance with the IESBA Code.

**Key Audit Matters** 

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters identified in our audit are summarised as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Measurement of expected credit losses (ECL) for loan and debt securities measured at amortized cost and loan commitments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fair value measurement of financial assets, financial liabilities and derivatives classified as level 2 or level 3 under
IFRS 13

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;**Key Audit Matter** | **How our audit addressed the**<br> **Key Audit Matter** |
| **Measurement of expected credit losses for loan and debt securities measured at amortized cost and loan commitments** |  |
| Refer to Note B3.3.6 to the financial statements "Impairment of financial instruments" in the accounting policies, Note B5.1 "Impairment losses on financial instruments" in the critical accounting estimates and judgments in applying accounting policies, Note C4 "Impairment provision", Note C8 "Loan investments, loan commitments and related ECL allowance", Note C9 "Debt securities at amortized cost", and Note D3 "Credit and other investment risks".<br>As at December 31, 2025, the gross amount of loan investments, loan commitments and debt securities of the Bank were USD29,748.36 million, USD17,340.85 million, and USD11,306.09 million, respectively. An Expected Credit Loss (ECL) allowance of USD 122.76 million was recognized resulting in a net recorded amount of loan investments and loan commitments of USD29,626.58 million and USD17,339.87 million, respectively. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We understood, evaluated and tested the design and operational effectiveness of the internal control relating to the measurement of ECLs for loan investments and debt securities measured at amortized cost and loan commitments. These internal controls primarily included:<br>• Governance over ECL models, including the selection, approval and application of modelling methodology; and the internal control relating to the ongoing monitoring and updates to the model;<br>• Internal control relating to significant management judgments and assumptions including the review and approval of internal credit rating and any subsequent changes, identification of significant increases in credit risk or credit-impaired loans and debt securities, and forward-looking measurement;<br>• Internal control over completeness of key inputs, review and approval of ECL outcomes, the activities of the service organization as well as the controls maintained by service organization.<br>|

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;**Key Audit Matter** | **How our audit addressed the**<br> **Key Audit Matter** |
| **Measurement of expected credit losses for loan and debt securities measured at amortized cost and loan commitments (Cont'd)** |  |
| An Expected Credit Loss allowance of USD8.99 million was recognized resulting in a net carrying amount of debt securities of USD11,297.09 million. For the year ended December 31, 2025, the impairment provisions released on loan investments measured at amortized cost and loan commitments were USD75.96 million, the impairment provisions released on debt securities measured at amortized cost was USD4.85 million. The allowance of ECLs for loan and debt securities measured at amortized cost and loan commitments represent management's best estimates at the balance sheet date applying the ECL models under International Financial Reporting Standard 9: Financial Instruments (IFRS 9).<br>The Bank periodically evaluates the performance of expected credit loss models and the appropriateness of critical inputs and assumptions in the expected credit loss models.<br>The Bank assesses whether the credit risk of loan investments and debt securities measured at amortized cost and loan commitments have increased significantly since their initial recognition, and applies a three-stage impairment model to calculate their ECL. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The substantive procedures we performed, with the assistance of our specialists, primarily included:<br>• We reviewed the modelling methodologies and its application in the determination of ECL;<br>• We assessed the reasonableness of significant judgments and assumptions in relation to the models;<br>• We tested data inputs to the ECL models on a sample basis, including historical data and data at the measurement date, to assess their accuracy and completeness;<br>• We selected samples, in consideration of the financial information and non-financial information of the borrowers, relevant external evidence and other factors, to assess the appropriateness of management's assessment of significant increases in credit risk and credit-impaired loans and debt securities if any;<br>|

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;**Key Audit Matter** | **How our audit addressed the**<br> **Key Audit Matter** |
| **Measurement of expected credit losses for loan and debt securities measured at amortized cost and loan commitments (Cont'd)** |  |
| Management assesses loss allowances using the risk parameter modelling approach which incorporates key parameters, including the probability of default, loss given default, exposure at default, and discount rates.<br>The estimation of ECL involves significant management judgments and assumptions, mainly comprising the following:<br>(1) Determining criteria for significant increase in credit risk and credit impairment;<br>(2) Choosing appropriate models and assumptions for the measurement of ECL;<br>(3) Establishing the number and probability of forward-looking scenarios for each type of product;<br>(4) Assigning exposures through an internal credit rating process; and<br>The Bank has established governance processes and controls for the measurement of ECL.<br>For measuring ECL, the Bank has adopted complex models, employed numerous parameters and data inputs, and applied significant management judgments and assumptions. In addition, the amount of loan investments and debt securities measured at amortized cost and loan commitments are material to the Bank, and the loss allowance and associated impairment loss are important to users of the financial statements. In view of these reasons, we identified this as a key audit matter. | • For forward-looking measurements, we tested management's selection of economic variables, economic scenarios and weightings on a sample basis; assessed the reasonableness of the economic indicators used, and performed sensitivity analyses in weightings of economic scenarios;<br>• We independently recalculated the ECL outputs on a sample basis.<br>Our audit work also included assessing the appropriateness of disclosures relevant to ECL provided in the related notes to the financial statements.<br>Based on our procedures performed, the models, key parameters, significant judgments and assumptions adopted by management, the measurement results and the relevant disclosures were considered acceptable. |

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;**Key Audit Matter** | **How our audit addressed the**<br> **Key Audit Matter** |
| **Fair value measurement of financial assets, financial liabilities and derivatives classified as level 2 or level 3 under IFRS 13** |  |
| Refer to Note B3.3.7 to the financial statements "Determination of fair value" in the accounting policies, Note B5.2 "Measurement of fair value" in the critical accounting estimates and judgments in applying accounting policies, Note C3 "Net gain on financial instruments measured at fair value and foreign exchange", Note C6 "Cash, cash equivalent, and deposits with banks", Note C7 "Investments at fair value through profit or loss", Note C12 "Borrowings", Note C13 "Derivatives" and Note E "Fair Value Disclosures".<br>As at December 31, 2025, the Bank holds financial assets and financial liabilities (including derivatives) measured at fair value classified as level 2 of USD3,988.63 million, and USD37,434.10 million, respectively. Financial assets measured at fair value classified as level 3 totalled USD1,435.17 million with no level 3 financial liabilities.<br>Such financial instruments, measured at fair value, are valued based on a combination of market data and valuation models and are grouped into different levels on the basis of observability of inputs used in the fair value measurement.<br>Financial instruments where no active market or no market price is available are valued at the market prices or by using valuation models based on observable market data. These financial instruments are categorised as level 2 in the IFRS fair value valuation hierarchy. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We understood, evaluated and tested the design and operational effectiveness of key internal control over measurement of the valuation of financial instruments classified as level 2 and level 3. These controls primarily included:<br>• Governance over valuation methodologies, including the selection, approval and application of valuation models; and the internal control relating to the ongoing monitoring and updates to the methodologies and models;<br>• Internal control relating to significant management judgments and assumptions including the review and approval of parameter determination and any subsequent changes; and<br>• Internal control over general IT controls and operational aspects of data input selection and valuation models, including access controls, accuracy and completeness of key inputs and review and approval of valuation outcomes.<br>|

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;**Key Audit Matter** | **How our audit addressed the**<br> **Key Audit Matter** |
| **Fair value measurement of financial assets, financial liabilities and derivatives classified as level 2 or level 3 under IFRS 13 (Cont'd)** |  |
| The Bank also has financial assets for which the fair value measurement has been determined using valuation models where the inputs are unobservable. These financial instruments are categorised as level 3 in the IFRS fair value valuation hierarchy. Management determines the fair value of these financial assets using a variety of techniques. The valuation methods involve inputs from various unobservable inputs such as cash flow and risk-adjusted discount rate.<br>The Bank has established governance processes and controls for the measurement of fair value.<br>We consider that financial instruments classified as level 2 and level 3 in the fair value hierarchy were a key element of the audit because of the materiality of the exposure and the use of judgment in determining fair value. In view of these reasons, we identified this as a key audit matter. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The substantive procedures we performed, with the assistance of our internal valuation specialists, primarily included:<br>• We reviewed the valuation methodologies, and assessed the reasonableness of the significant assumptions and models used by the Bank;<br>• We independently verified valuation parameters and data inputs on a sample basis; and<br>• We performed independent valuation on a sample basis for various types of financial instruments across the entire fair value hierarchy of financial assets and liabilities and compared with the Bank's valuation records.<br>Our audit work also included assessing the appropriateness of disclosures relevant to valuation of financial instruments measured at fair value provided in the related notes to the financial statements.<br>Based on our procedures performed, the methodologies, assumptions and models adopted by management, the measurement results and the relevant disclosures were considered acceptable. |

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**Other Information** 

Management is responsible for the other information. The other information comprises all of the information included in the 2025 Annual Report of the Bank (the "annual report") (but does not include the financial statements and our auditor's report thereon), which is expected to be made available to us after the date of this auditor's report.

Our opinion on the financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

When we read the other information to be included in the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take appropriate action considering our legal rights and obligations.

**Responsibilities of Management and Those Charged with Governance for the Financial Statements** 

Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS Accounting Standards, and for such internal control as management determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Bank's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Bank's financial reporting process.

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**Auditor's Responsibilities for the Audit of the Financial Statements** 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bank's internal control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor's report. However, future events or conditions may cause the Bank to cease to continue as a going concern.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosures about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor's report is YUEN, Kwok Sun.

/s/ PricewaterhouseCoopers

**PricewaterhouseCoopers** 

Certified Public Accountants

Hong Kong, China, March 24, 2026

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**Asian Infrastructure Investment Bank** 

**Statement of Comprehensive Income** 

**For the year ended Dec. 31, 2025** 

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| | | | |
|:---|:---|:---|:---|
| *In thousands of US Dollars* | **Note** | **For the year ended<br>Dec. 31, 2025** | **For the year ended<br>Dec. 31, 2024** |
|  Interest income | C1 | 2160815 | 2227473 |
|  Interest expense | C1 | (1310804) | (1140775) |
|  **Net interest income** |  | **850011** | **1086698** |
|  Net fee and commission income | C2 | 47742 | 42961 |
|  Net gain on financial instruments measured at fair value and foreign exchange | C3 | 252760 | 227576 |
|  Net loss on financial instruments measured at amortized cost | C9 | (4862) | (181) |
|  Impairment provision release | C4 | 81164 | 55840 |
|  General and administrative expenses | C5 | (303668) | (264880) |
|  **Operating profit for the year** |  | **923147** | **1148014** |
|  Accretion of paid-in capital receivables | C10 | 276 | 666 |
|  **Net profit for the year** |  | **923423** | **1148680** |
|  Other comprehensive income |  |  |  |
|  *Items will not be reclassified to profit or loss* |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized gain/(loss) in fair-valued borrowings arising from changes in own credit risk | C12 | 79052 | (142012) |
|  **Total comprehensive income** |  | **1002475** | **1006668** |
|  **Attributable to:** |  |  |  |
|  Equity holders of the Bank |  | **1002475** | **1006668** |

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The accompanying notes are an integral part of these financial statements.

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**Asian Infrastructure Investment Bank** 

**Statement of Financial Position** 

**As at Dec. 31, 2025** 

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| | | | |
|:---|:---|:---|:---|
| *In thousands of US Dollars* | **Note** | **Dec. 31, 2025** | **Dec. 31, 2024** |
|  **Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | C6 | 3295009 | 1922539 |
| &nbsp;&nbsp;&nbsp;&nbsp; Term deposits | C6 | 3138361 | 462012 |
| &nbsp;&nbsp;&nbsp;&nbsp; Treasury investments |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments at fair value through profit or loss | C7 | 12827965 | 12606677 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities, at amortized cost | C9 | 10490939 | 11042476 |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment operations |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loan investments, at amortized cost | C8 | 29626580 | 26637065 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt securities, at amortized cost | C9 | 806153 | 706013 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments at fair value through profit or loss | C7 | 2272696 | 1932264 |
| &nbsp;&nbsp;&nbsp;&nbsp; Paid-in capital receivables | C10 | 219625 | 234336 |
| &nbsp;&nbsp;&nbsp;&nbsp; Derivative assets | C13 | 1312674 | 832061 |
| &nbsp;&nbsp;&nbsp;&nbsp; Property and equipment |  | 7760 | 5592 |
| &nbsp;&nbsp;&nbsp;&nbsp; Intangible assets |  | 6546 | 6776 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other assets | C11 | 655682 | 728631 |
|  **Total assets** |  | **64659990** | **57116442** |
|  **Liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Borrowings | C12 | 39069441 | 32953799 |
| &nbsp;&nbsp;&nbsp;&nbsp; Derivative liabilities | C13 | 841922 | 1175585 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid paid-in capital |  | 174 | 669 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | C14 | 1170215 | 528854 |
|  **Total liabilities** |  | **41081752** | **34658907** |
|  **Members' equity** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Paid-in capital | C15 | 19526400 | 19407500 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reserves |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion of paid-in capital receivables |  | (814) | (418) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized loss in fair-valued borrowings arising from changes in own credit risk |  | (114700) | (193752) |
| &nbsp;&nbsp;&nbsp;&nbsp; Retained earnings |  | 4167352 | 3244205 |
|  **Total members' equity** |  | **23578238** | **22457535** |
|  **Total liabilities and members' equity** |  | 64659990 | **57116442** |

---

The accompanying notes are an integral part of these financial statements.

------

**Asian Infrastructure Investment Bank** 

**Statement of Changes in Equity** 

**For the year ended Dec. 31, 2025** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | **Reserves** | **Reserves** | | |
| <br>*In thousands of<br>US Dollars* |<br>**Note** |<br>**Subscribed<br>capital** |<br>**Less:<br>callable<br>capital** |<br>**Paid-in<br>capital** | **Accretion<br>of paid-in<br>capital<br>receivables** | **Unrealized gain/loss in<br>fair-valued borrowings<br>arising from changes<br>in own credit risk** | **Retained<br>earnings** | **Total<br>member's<br>equity** |
|  **Jan. 1, 2024** |  | **97027300** | **(77621900)** | **19405400** | **(994)** | **(51740)** | **2096191** | **21448857** |
|  Capital subscription and contribution |  | 10500 | (8400) | 2100 |  |  |  | 2100 |
|  Net profit for the year |  |  |  |  |  |  | 1148680 | 1148680 |
|  Other comprehensive loss |  |  |  |  |  | (142012) |  | (142012) |
|  Paid-in capital receivables<br> - accretion effect |  |  |  |  | (90) |  |  | (90) |
|  Transfer of accretion | C10 |  |  |  | 666 |  | (666) |  |
|  **Dec. 31, 2024** | C15 | **97037800** | **(77630300)** | **19407500** | **(418)** | **(193752)** | **3244205** | **22457535** |
|  **Jan. 1, 2025** |  | **97037800** | **(77630300)** | **19407500** | **(418)** | **(193752)** | **3244205** | **22457535** |
|  Capital subscription and<br> contribution |  | 594400 | (475500) | 118900 |  |  |  | 118900 |
|  Net profit for the year |  |  |  |  |  |  | 923423 | 923423 |
|  Other comprehensive income |  |  |  |  |  | 79052 |  | 79052 |
|  Paid-in capital receivables<br> - accretion effect |  |  |  |  | (672) |  |  | (672) |
|  Transfer of accretion | C10 |  |  |  | 276 |  | (276) |  |
|  **Dec. 31, 2025** | C15 | **97632200** | **(78105800)** | **19526400** | **(814)** | **(114700)** | **4167352** | **23578238** |

---

The accompanying notes are an integral part of these financial statements.

------

**Asian Infrastructure Investment Bank** 

**Statement of Cash Flows** 

**For the year ended Dec. 31, 2025** 

---

| | | | |
|:---|:---|:---|:---|
| *In thousands of US Dollars* | **Note** | **For the year ended**<br> **Dec. 31, 2025** | **For the year ended**<br> **Dec. 31, 2024** |
|  **Cash flows from operating activities** |  |  |  |
|  Net profit for the year |  | 923423 | 1148680 |
|  Adjustments for: |  |  |  |
| &nbsp;&nbsp;&nbsp; Interest income from term deposits |  | (108799) | (118539) |
| &nbsp;&nbsp;&nbsp; Interest expense for borrowings | C12 | 1291168 | 1149257 |
| &nbsp;&nbsp;&nbsp; Interest expense for leasing | C1 | 11 | 25 |
| &nbsp;&nbsp;&nbsp; Issuance cost for borrowings | C5 | 10233 | 9047 |
| &nbsp;&nbsp;&nbsp; Accretion of paid-in capital receivables | C10 | (276) | (666) |
| &nbsp;&nbsp;&nbsp; Net loss/(gain) on financial instruments measured at fair value through profit or loss |  | 447067 | (436580) |
| &nbsp;&nbsp;&nbsp; Impairment provision release | C4 | (81164) | (55840) |
| &nbsp;&nbsp;&nbsp; Depreciation and amortization |  | 4889 | 4253 |
|  Increase in loan investments | C8 | (2913018) | (4607191) |
|  (Increase)/decrease in debt securities in investment operations portfolio |  | (177249) | 7182 |
|  Net cash paid for derivatives |  | (416194) | (906212) |
|  Decrease in other assets |  | 71290 | 354242 |
|  Increase in other liabilities |  | 641367 | 294854 |
|  **Net cash used in operating activities** |  | **(307252)** | **(3157488)** |
|  **Cash flows from investing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp; Increase in investment with equity participation |  | (282326) | (326577) |
| &nbsp;&nbsp;&nbsp; Dividends received and return of capital contributions |  | 114357 | 127944 |
| &nbsp;&nbsp;&nbsp; Debt securities at amortized cost purchased in treasury investment portfolio |  | (4474052) | (3511904) |
| &nbsp;&nbsp;&nbsp; Debt securities at amortized cost matured, terminated or sold under treasury investment portfolio |  | 5027239 | 36386 |
| &nbsp;&nbsp;&nbsp; Decrease in other treasury investment |  | 650158 | 2803281 |
| &nbsp;&nbsp;&nbsp; (Increase)/decrease in term deposits |  | (2636876) | 2620000 |
| &nbsp;&nbsp;&nbsp; Interest received from term deposits |  | 69325 | 145344 |
| &nbsp;&nbsp;&nbsp; Increase in intangible assets, property and equipment |  | (5168) | (4744) |
|  **Net cash (used in)/from investing activities** |  | **(1537343)** | **1889730** |
|  **Cash flows from financing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp; Proceeds from borrowings, net | C12 | 20923652 | 14047018 |
| &nbsp;&nbsp;&nbsp; Repayments of borrowings | C12 | (16678372) | (11655017) |
| &nbsp;&nbsp;&nbsp; Interest payments on borrowings | C12 | (1160479) | (1071831) |
| &nbsp;&nbsp;&nbsp; Capital contributions received | C10 | 132719 | 30777 |
| &nbsp;&nbsp;&nbsp; Prepaid paid-in capital received |  |  | 669 |
| &nbsp;&nbsp;&nbsp; Lease payments |  | (455) | (441) |
|  **Net cash from financing activities** |  | **3217065** | **1351175** |
|  **Net increase in cash and cash equivalents** |  | 1372470 | 83417 |
|  Cash and cash equivalents at beginning of year |  | 1922539 | 1839122 |
|  **Cash and cash equivalents at end of year** | C6 | **3295009** | **1922539** |

---

The accompanying notes are an integral part of these financial statements.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

---

| | |
|:---|:---|
| **A** | **General Information**  |

---

The Asian Infrastructure Investment Bank (the "Bank" or "AIIB") is a multilateral development bank. By the end of year 2015, representatives from 57 economies signed AIIB's Articles of Agreement (the "AOA"), which entered into force on Dec. 25, 2015. The Bank commenced operations on Jan. 16, 2016. AIIB's principal office is in Beijing, the People's Republic of China ("China").

For the year ended Dec. 31, 2025, AIIB approved one new membership application. As at Dec. 31, 2025, the Bank's total approved membership is 111, of which 106 have completed the membership process and have become members of AIIB in accordance with the AOA.

AIIB's purpose is to (i) foster sustainable economic development, create wealth and improve infrastructure connectivity in Asia by investing in infrastructure and other productive sectors; and (ii) promote regional cooperation and partnership in addressing development challenges by working in close collaboration with other multilateral and bilateral development institutions.

The legal status, privileges and immunities for the operation and functioning of AIIB in China are agreed in the AOA and further defined in the Headquarters Agreement between the government of the People's Republic of China (the "Government") and the Bank on Jan. 16, 2016.

The Bank's first overseas office, an Interim Operational Hub (the "Hub"), was established in Abu Dhabi, the United Arab Emirates (the "UAE"), upon the government of the UAE and the Bank signing an agreement regarding the establishment of an office in the UAE on April 19, 2023. The Hub provides proximity to global financial centers and connectivity with the international infrastructure ecosystem which is important in maintaining AIIB's growth momentum.

These financial statements were signed by the President, the Acting Chief Financial Officer and Treasurer, and the Controller on March 24, 2026.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

---

| | |
|:---|:---|
| **B** | **Accounting Policies**  |

---

---

| | |
|:---|:---|
| **B1** | **Basis of preparation**  |

---

These financial statements for the Bank have been prepared in accordance with the IFRS Accounting Standards issued by the International Accounting Standards Board (IASB). According to the By-laws of AIIB, the financial year of the Bank begins on Jan.1 and ends on Dec. 31 of each year.

The Bank has adopted all of the IFRS Accounting Standards and interpretations effective for annual periods beginning on Jan. 1, 2025.

The financial statements have been prepared under the historical cost convention, except for those financial instruments measured at fair value.

The preparation of financial statements in conformity with IFRS Accounting Standards requires the use of certain critical accounting estimates. It also requires management to exercise judgment in its process of applying the Bank's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where judgments or estimates are significant to the financial statements are disclosed in Note B5. The financial statements have been prepared on a going concern basis.

---

| | |
|:---|:---|
| **B2** | **New accounting pronouncements**  |

---

In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements, effective for annual reporting periods beginning on or after Jan.1, 2027. The new standard aims to give users of financial statements more transparent and comparable information about an entity's financial performance. The Bank has conducted assessments and developed plans to implement the impact of the new standard and amendments to the existing standards.

In addition to IFRS 18, the IASB issued amendments to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments in May 2024, effective for annual reporting periods beginning on, or after, Jan.1, 2026. The amendments provide further clarification regarding the classification and measurement of financial assets and liabilities. It did not have a material impact on the Bank's operations or financial statements.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

---

| | |
|:---|:---|
| **B** | **Accounting Policies**  |

---

---

| | |
|:---|:---|
| **B3** | **Summary of material accounting policies**  |

---

---

| | |
|:---|:---|
| **B3.1** | **Functional currency and foreign currency transactions**  |

---

The functional currency of the Bank and the presentation currency of the Bank are United States Dollar ("USD" or "US Dollar").

Foreign currency transactions are initially translated into USD using exchange rates prevailing at the dates of the related transactions. At the end of the reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are recognized in profit or loss during the period in which they arise.

Foreign exchange gains or losses arising on financial assets and liabilities denominated in foreign currencies have been presented together with net gains or losses derived from associated derivative instruments in the Statement of Comprehensive Income, to provide reliable and more relevant information about the effects of foreign currency transactions.

---

| | |
|:---|:---|
| **B3.2** | **Cash and cash equivalents**  |

---

Cash and cash equivalents are items which are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Deposits with initial maturity of three months or less and money market funds are classified as cash and cash equivalents.

---

| | |
|:---|:---|
| **B3.3** | **Financial instruments**  |

---

---

| | |
|:---|:---|
| **B3.3.1** | **Financial assets**  |

---

The Bank's financial assets are classified into three categories:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Amortized cost,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Fair value through other comprehensive income ("FVOCI"), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Fair value through profit or loss ("FVPL").

The basis of classification depends on the relevant business model and the contractual cash flow characteristics of the underlying financial asset.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

---

| | |
|:---|:---|
| **B** | **Accounting Policies**  |

---

---

| | |
|:---|:---|
| **B3.3** | **Financial instruments (Continued)**  |

---

---

| | |
|:---|:---|
| **B3.3.1** | **Financial assets (Continued)**  |

---

**(a)** **Classification of financial assets at amortized cost** 

The Bank classifies its financial assets at amortized cost only if both of the following criteria are met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The financial asset is held within a business model having the objective of collecting the contractual cash flows; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The contractual terms give rise, on specified dates, to cash flows that are solely payments of principal or interest
on the principal outstanding.

The Bank applies the effective interest method to the amortized cost of a financial asset.

**(b)** **Classification of financial assets at FVOCI** 

Financial assets at FVOCI comprise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Financial assets having contractual cash flows which reflect solely payments of principal and interest on outstanding
principal, and for which the objective of the related business model is achieved both by collecting contractual cash flows and selling financial assets, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Investments in equity instruments which are neither held for trading nor contingent consideration, and for which the
Bank has made an irrevocable election at initial recognition to recognize changes in fair value through other comprehensive income ("OCI") rather than profit or loss.

For (i) above, interest is calculated using the effective interest method and recognized in profit or loss. Except for gains or losses from impairment and foreign exchange which are recognized in profit or loss, the financial asset is measured at fair value with other changes in fair value recognized in OCI. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified to profit or loss.

For (ii) above, the accumulated fair value changes in OCI will not be reclassified to profit or loss in the future. Dividends on such investments are recognized in profit or loss, unless the dividend clearly represents a recovery of part of the cost of the investment.

**(c)** **Classification of financial assets at FVPL** 

The Bank classifies the following financial assets at FVPL:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Financial assets that do not qualify for measurement at either amortized cost or FVOCI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Financial assets that are designated at initial recognition at FVPL irrevocably, when such designation eliminates or
significantly reduces a measurement or recognition inconsistency that would otherwise arise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Investments in equity instruments that are held for trading; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Investments in equity instruments for which the Bank has not elected to recognize fair value gains or losses through
OCI.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

---

| | |
|:---|:---|
| **B** | **Accounting Policies**  |

---

---

| | |
|:---|:---|
| **B3.3** | **Financial instruments (Continued)**  |

---

---

| | |
|:---|:---|
| **B3.3.2** | **Financial liabilities**  |

---

The Bank's financial liabilities are classified as either financial liabilities through FVPL or other financial liabilities, carried at amortized cost.

**(a)** **Classification of financial liabilities at FVPL** 

Financial liabilities at FVPL have two subcategories: financial liabilities held for trading and those designated as FVPL on initial recognition.

Financial liabilities can be designated at FVPL when one of the following criteria is met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Eliminates or significantly reduces an accounting mismatch which would otherwise arise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) A group of financial liabilities are managed, and their performance is evaluated on fair value basis, in accordance
with a documented risk management strategy; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The financial liability contains one or more embedded derivatives which significantly modify the cash flows otherwise
required.

The amount of change in the fair value of the financial liability that is attributable to changes in the reporting entity's credit risk of that liability shall be presented in OCI. The remaining amount of change in the fair value of the liability shall be presented in profit or loss.

**(b)** **Other financial liabilities** 

Other financial liabilities are measured at amortized cost, using the effective interest method. The interest expenses are recognized in profit or loss.

---

| | |
|:---|:---|
| **B3.3.3** | **Derivatives**  |

---

The Bank measures derivatives at fair value, with all changes in fair value recognized in the Statement of Comprehensive Income. The Bank recognizes all of its contractual rights and obligations under derivatives in the Statement of Financial Position as assets and liabilities, respectively.

The Bank uses derivative instruments primarily for asset and liability management. The Bank has elected not to designate any hedging relationships for accounting purposes.

---

| | |
|:---|:---|
| **B3.3.4** | **Equity instruments**  |

---

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

---

| | |
|:---|:---|
| **B** | **Accounting Policies**  |

---

---

| | |
|:---|:---|
| **B3.3** | **Financial instruments (Continued)**  |

---

---

| | |
|:---|:---|
| **B3.3.4** | **Equity instruments (Continued)**  |

---

A puttable financial instrument includes a contractual obligation for the issuer to repurchase or redeem that instrument for cash or another financial asset on exercise of the put. The puttable instrument that includes such an obligation is classified as an equity instrument when meeting all the generally required features being most subordinate class of shares with identical features and all have the same rights on liquidation.

---

| | |
|:---|:---|
| **B3.3.5** | **Financial guarantee contracts**  |

---

Financial guarantee contracts are contracts that require the issuer to make specified payments to reimburse the holder for a loss it incurred because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument. Issued financial guarantee contracts are initially recognized at fair value, and subsequently measured at the higher of the amount of the loss allowance determined under IFRS 9, and the amount initially recognized less, when appropriate, the cumulative amount of income recognized in accordance with the principles of IFRS 15. Guarantee fees are recognized as fee income throughout the period that the service is rendered.

---

| | |
|:---|:---|
| **B3.3.6** | **Impairment of financial instruments**  |

---

Financial assets of the Bank that are measured at amortized cost (Note B3.3.1(a)), FVOCI (Note B3.3.1 (b) (i)) and certain unrecognized financial instruments such as loan commitments are subject to credit loss estimated through an expected credit loss ("ECL") model, assessed on a forward-looking basis.

At each reporting date, the Bank assesses whether the credit risk of a financial instrument has increased significantly since initial recognition. When making this assessment, the Bank considers the change in the risk of a default occurring over the expected life of the financial instrument. To make this assessment, the Bank compares the risk of a default occurring as at the reporting date with the risk of a default occurring as at the date of initial recognition, based on reasonable and supportable information that is available without undue cost or effort and is indicative of significant increases in credit risk since initial recognition.

At each reporting date, the Bank measures the loss allowance for a financial instrument at either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) An amount equal to the lifetime ECL if the credit risk related to that financial instrument has increased
significantly since initial recognition; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) An amount equal to a 12-month ECL if the credit risk related to that financial
instrument has not increased significantly since initial recognition.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

---

| | |
|:---|:---|
| **B** | **Accounting Policies**  |

---

---

| | |
|:---|:---|
| **B3.3** | **Financial instruments (Continued)**  |

---

---

| | |
|:---|:---|
| **B3.3.6** | **Impairment of financial instruments (Continued)**  |

---

The Bank measures ECL related to a financial instrument in a way that reflects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) An unbiased and probability-weighted amount determined by evaluating a range of possible outcomes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The time value of money; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Reasonable and supportable information that is available without undue cost or effort at the reporting date regarding
relevant past events, current circumstances, and forecasts of future economic conditions.

The Bank identifies financial assets as having credit impairment when one or more events that could have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Refer to Note D3 ECL measurement for the definition of credit-impaired assets.

The Bank recognizes the loss allowance of loan commitments and issued financial guarantees as a provision. If a financial instrument includes both financial asset (i.e., loan investment) and an undrawn commitment (i.e., loan or financial guarantee commitment) component and the Bank cannot separately identify the ECL on the commitment component from those on the financial asset component, the ECL on the commitment is recognized together with the loss allowance for the financial asset. To the extent that the combined ECL exceeds the gross carrying amount of the financial asset, the ECL is recognized as a provision.

---

| | |
|:---|:---|
| **B3.3.7** | **Determination of fair value**  |

---

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price) regardless of whether that price is directly observable or estimated using another valuation technique.

For financial instruments traded in active markets, the determination of fair values of financial assets and financial liabilities is based on quoted market prices.

A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, pricing service, or regulatory agency; and those prices represent actual and regularly occurring market transactions on an arm's length basis. If the above criteria are not met, the market is regarded as being inactive.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

---

| | |
|:---|:---|
| **B** | **Accounting Policies**  |

---

---

| | |
|:---|:---|
| **B3.3** | **Financial instruments (Continued)**  |

---

---

| | |
|:---|:---|
| **B3.3.7** | **Determination of fair value (Continued)**  |

---

For financial instruments not traded in active markets, fair value is determined using appropriate valuation techniques. Valuation techniques include the use of recent transaction prices, discounted cash flow analysis, option pricing models and others commonly used by market participants. These valuation techniques include the use of observable and/or unobservable inputs.

---

| | |
|:---|:---|
| **B3.3.8** | **Offsetting of financial instruments**  |

---

A financial asset and a financial liability are offset, and the net amount presented in the statement of financial position when the Bank currently has a legally enforceable right to set off the recognized amounts, and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.

---

| | |
|:---|:---|
| **B3.3.9** | **Day one profit or loss**  |

---

The best evidence of fair value of a financial instrument at initial recognition is the transaction price, which is the fair value of the payment given or received, unless the fair value of that instrument is evidenced by comparison with other observable current market transactions in the same instrument (without modification or repackaging) or based on a valuation technique whose variables include only data from observable markets.

Sovereign loans are measured at fair value at initial recognition, using the assumptions market participants with similar objectives as the Bank would use when pricing the sovereign-backed loan assets. The market where the Bank enters into such transactions is considered to be the principal market.

In situations where the fair value cannot be determined by observable market inputs, the difference between the transaction price and the fair value, commonly referred to as "day one profit or loss", is either amortized over the life of the transaction, deferred until the instrument's fair value can be measured using market observable data, or realized through settlement.

---

| | |
|:---|:---|
| **B3.3.10** | **Recognition and derecognition**  |

---

The Bank recognizes a financial asset or a financial liability in its Statement of Financial Position when, and only when, the Bank becomes a party to the contractual provisions of the instrument.

A regular way purchase or sale of financial assets shall be recognized and derecognized as applicable using trade date accounting. Loans are recognized when cash is advanced to the borrowers.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

---

| | |
|:---|:---|
| **B** | **Accounting Policies**  |

---

---

| | |
|:---|:---|
| **B3.3** | **Financial instruments (Continued)**  |

---

---

| | |
|:---|:---|
| **B3.3.10** | **Recognition and derecognition (Continued)**  |

---

At initial recognition, the Bank measures a financial asset or financial liability at its fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issuance of the financial asset or financial liability.

Before evaluating whether, and to what extent, derecognition is appropriate, the Bank determines whether the derecognition analysis should be applied to a part of a financial asset or a financial asset in its entirety. The Bank derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Bank neither transfers nor retains substantially all the risks and rewards of ownership and has not retained control of the transferred asset, the Bank derecognizes the financial asset and recognizes separately as assets or liabilities any rights and obligations created or retained in the transfer.

Upon derecognition of a financial asset in its entirety, the difference between the carrying amount of the asset and the sum of the consideration received and receivable and, where applicable, the cumulative gain or loss that had been recognized in other comprehensive income is reclassified to profit or loss, except for those investments in equity instruments designated as FVOCI.

Financial liabilities are derecognized when the related obligation is discharged, cancelled or expired. The difference between the carrying amount of the financial liability derecognized and the sum of the consideration paid and payable is recognized in the profit or loss.

---

| | |
|:---|:---|
| **B3.3.11** | **Modification of contractual cash flows**  |

---

Loans and other financial assets may be renegotiated with the modification of the contractual cash flows. When the original financial asset has been significantly amended it will be recognized and replaced with a new asset. To the extent the original asset is retained, any changes in present value attributable to the modification will be recognized as an adjustment to the carrying value of the asset with the associated gains and losses on modification recognized in the income statement.

---

| | |
|:---|:---|
| **B3.4** | **Investments in associates**  |

---

Associates are those entities in which the Bank has significant influence over, but does not control or jointly control, the financial and operating policy decisions.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

---

| | |
|:---|:---|
| **B** | **Accounting Policies**  |

---

---

| | |
|:---|:---|
| **B3.4** | **Investments in associates (Continued)**  |

---

From June 2024 onwards, investments in associates with the objectives of looking for capital appreciation, rather than assuming responsibility for managing those entities, were made and held through a newly structured independent and centralized function of the Bank. The Bank applied the exemption from adopting the equity method under IAS 28 for the investments in the associates through venture capital, and elected to measure these investments held by the independent and centralized function of the Bank at fair value through profit or loss in accordance with IFRS 9. This election is applied prospectively.

---

| | |
|:---|:---|
| **B3.5** | **Revenue**  |

---

---

| | |
|:---|:---|
| **B3.5.1** | **Interest Income**  |

---

Interest income is calculated using the effective interest method. In this regard, the effective interest rate is applied to the gross carrying amount of a financial asset except for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Purchased or originated credit-impaired financial assets, for which the credit adjusted effective interest rate is
applied to the amortized cost of the financial assets from initial recognition; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Credit-impaired financial assets that have been recognized subsequent to initial recognition, for which the original
effective interest rate is applied to the net carrying value in subsequent reporting periods.

With respect to (ii) above, in subsequent reporting periods, interest income is calculated by applying the effective interest rate to the gross carrying amount if the credit risk of the financial asset improves so that it is no longer credit impaired.

---

| | |
|:---|:---|
| **B3.5.2** | **Front-end and commitment fees**  |

---

Front-end fees received by the Bank relating to the origination or acquisition of a financial asset are an integral part of generating involvement with the resulting financial instrument and, accordingly, are an integral part of the effective interest rate of that financial instrument.

Commitment fees received by the Bank to originate a loan when the loan commitment is not measured at FVPL are treated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If it is probable that the Bank will enter into a specific lending arrangement, it is an integral part of the
effective interest rate of a financial instrument. If the commitment expires without the Bank making the loan, the fee is recognized as income at expiration of the commitment.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

---

| | |
|:---|:---|
| **B** | **Accounting Policies**  |

---

---

| | |
|:---|:---|
| **B3.5** | **Revenue (Continued)**  |

---

---

| | |
|:---|:---|
| **B3.5.2** | **Front-end and commitment fees (Continued)**  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If it is likely that a specific lending arrangement will not be entered into, or the loan commitment fee is directly
related to the undrawn portion of the loan commitment and it changes based on the portion of the unused commitment at that time, it is not an integral part of the effective interest rate of the financial instrument and the fee is accounted for as
income over the commitment period.

---

| | |
|:---|:---|
| **B4** | **Summary of other accounting policies**  |

---

---

| | |
|:---|:---|
| **B4.1** | **Leases**  |

---

Short-term leases no more than 12 months, or low-value leases of assets worth less than USD100 thousand are accounted for as a general administrative expense, recognized in the income statement on a straight-line basis over the period of the lease.

A lease contract conveys the right to control the use of an asset for a specified period of time. The lease liability is measured as the present value of the payments that are not paid at the date of recognition discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the incremental borrowing rate is used. The right-of-use asset is measured at cost, consisting of the lease liability plus any payments made before the commencement of the lease and less any lease incentives. The right-of-use asset is generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.

The right-of-use asset is reported as part of the "property and equipment" in the financial statements, and the lease liability is classified and reported under "Other liabilities" in the financial statements.

---

| | |
|:---|:---|
| **B4.2** | **Employee benefits**  |

---

Employee benefits represent considerations given, and are expenditures incurred by the Bank, in exchange for services rendered by employees or for termination of employment contracts. These benefits include short-term employee benefits and contributions to defined contribution plans.

***Short-term employee benefits***

During the reporting period in which an employee has rendered services, the Bank recognizes the short-term employee benefits payable for those services as a liability with a corresponding increase in the related expense. Short-term employee benefits include base salary and location premiums, pre-retirement medical insurance, life insurance, accidental death and disability provision, death grant, leave, travel accident coverage, long-term disability, multipurpose loans to staff as well as flexible allowance and resettlement allowance which are special allowances for staff recruited globally.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

---

| | |
|:---|:---|
| **B** | **Accounting Policies**  |

---

---

| | |
|:---|:---|
| **B4.2** | **Employee benefits (Continued)**  |

---

***Defined contribution plans***

A defined contribution plan is a retirement plan under which the Bank pays fixed contributions into a separate entity. When an employee has rendered service to the Bank during a period, the Bank recognizes a contribution payable to a defined contribution plan in exchange for that service, along with the related expense. Defined contribution plans include defined contribution retirement plans and post-retirement medical benefit plans.

---

| | |
|:---|:---|
| **B4.3** | **Dividends**  |

---

Dividend distributions to the Bank's members are recognized as a liability in the period in which the dividends are approved by the Board of Governors.

---

| | |
|:---|:---|
| **B4.4** | **Taxation**  |

---

In accordance with Article 51 of the AOA, within the scope of its official activities, the Bank, its assets, property, income, and its operations and transactions, shall be exempt from all taxation and from all custom duties in its member countries. Article 51 also exempts the Bank from any obligation for the payment, withholding, or collection of any tax or duty.

---

| | |
|:---|:---|
| **B4.5** | **Current and noncurrent presentation**  |

---

The Bank presents its assets and liabilities mainly in the order of liquidity as this provides more relevant information.

---

| | |
|:---|:---|
| **B5** | **Critical accounting estimates and judgments in applying accounting policies**  |

---

The Bank makes estimates and assumptions that affect the amounts recognized in the financial statements, and the carrying amounts of assets and liabilities within the next financial year. Estimates and judgments are continually evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Management also makes certain judgments, apart from those involving estimations, in the process of applying the accounting policies. Judgments that have the most significant effect on the amounts recognized in the financial statements and estimates that can cause a significant adjustment to the carrying amount of assets and liabilities within the next financial year include:

---

| | |
|:---|:---|
| **B5.1** | **Impairment losses on financial instruments**  |

---

The measurement of the ECL allowance for financial assets measured at amortized cost requires extensive financial modelling and significant assumptions about future economic conditions and credit behavior (e.g., the likelihood of customers defaulting and the resulting losses).

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

---

| | |
|:---|:---|
| **B** | **Accounting Policies**  |

---

---

| | |
|:---|:---|
| **B5.1** | **Impairment losses on financial instruments (Continued)**  |

---

A number of significant judgments are also required in measuring ECL, which include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Determining criteria for significant increase in credit risk and credit impairment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Choosing appropriate models and assumptions for the measurement of ECL;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Establishing the number and probability of forward-looking scenarios for each type of product; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Assigning exposures through an internal credit rating process.

Details of the inputs, assumptions, and estimation techniques used in measuring ECL are further disclosed in Note D3, which also presents sensitivities of the ECL.

---

| | |
|:---|:---|
| **B5.2** | **Measurement of fair value**  |

---

Measurement of fair value requires the accounting estimates that affect the reported amounts of assets and liabilities at the date of the financial statements. The critical accounting estimates on the fair value of the financial instruments are highly dependent on a number of variables that reflect the economic environment and financial markets of the economies in which the Bank invests.

The Bank is required to use valuation techniques to determine the fair value. The Bank made judgments about the expected timing of future cash flows and the appropriate discount rate to apply. Detailed information is further disclosed in Note E.

---

| | |
|:---|:---|
| **B5.3** | **Structured entities consolidation**  |

---

The Bank manages special funds, including the Project Preparation Special Fund ("PPSF" or "Project Preparation Special Fund"), the Special Fund Window for Less Developed Members ("Special Fund Window" or "SFW"), the Project-Specific Window ("PSW"), and the external special funds (together, the "Special Funds"). The external special funds are considered as special fund resources received by the Bank in its role as implementing entity of multilateral partnership facilities, which include Technical Partner of the Global Infrastructure Facility (the "GIF TP"), the Implementing Partner of the Finance Facility of the Multilateral Cooperation Center for Development Finance (the "MCDF IP") and the Implementing Entity of the Pandemic Prevention, Preparedness and Response Trust Fund (the "PPR IE"), and the Accredited Entity of the Green Climate Fund (the "GCF AE") (the "External Special Funds").

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

---

| | |
|:---|:---|
| **B** | **Accounting Policies**  |

---

---

| | |
|:---|:---|
| **B5.3** | **Structured entities consolidation (Continued)**  |

---

The Bank has made a judgment on whether or not, for accounting purposes, it is the principal or an agent, to assess whether the Bank controls the Special Funds and should consolidate them. The Bank identified the Special Funds assets as a "silo" when conducting its consolidation assessment. When performing this assessment, the Bank considered several factors including, among other things, the scope of its decision-making authority over the structured entities, the rights held by other parties, the remuneration to which it is entitled in accordance with the related agreements for the administration services and the Bank's exposure to variability of returns from other interests that it holds in the structured entities. The Bank is not exposed to any significant variability in its returns and as such is deemed to not control the Special Funds. The Bank performs re-assessment if there are changes in relevant facts or circumstances.

Detailed information about the unconsolidated structured entities is set out in Note C18.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C1** | **Interest income and expenses**  |

---

---

| | | |
|:---|:---|:---|
|  | **For the year ended<br>Dec. 31, 2025** | **For the year ended<br>Dec. 31, 2024** |
|  **Interest income** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Loan investments <sup>(1)</sup> | 1468440 | 1527841 |
| &nbsp;&nbsp;&nbsp;&nbsp; Debt securities | 461309 | 391014 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash, cash equivalents, and deposits | 226870 | 308570 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reverse repurchase agreements | 4196 | 48 |
|  **Total interest income** | **2160815** | **2227473** |
|  **Interest expense** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Borrowings <sup>(2)</sup> | (1308999) | (1140750) |
| &nbsp;&nbsp;&nbsp;&nbsp; Repurchase agreements | (1794) |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Lease | (11) | (25) |
|  **Total interest expense** | **(1310804)** | **(1140775)** |
|  **Net interest income** | **850011** | **1086698** |

---

<sup>(1)</sup> Interest income for loan investments includes amortization of front-end fees, and other incremental and directly related costs in relation to loan origination that are an integral part of the effective interest rate of those loans.

<sup>(2)</sup> Interest expense is accrued mainly based on the notional coupon rate. However, the Bank uses derivatives to manage interest rate and foreign currency risks, and hence, the actual borrowing cost for the Bank is swapped from fixed to floating rate. Please refer to Note C13 Derivatives for details. 

---

| | |
|:---|:---|
| **C2** | **Net fee and commission income**  |

---

---

| | | |
|:---|:---|:---|
|  | **For the year ended<br>Dec. 31, 2025** | **For the year ended<br>Dec. 31, 2024** |
|  Loan and guarantee fees | 47786 | 44609 |
|  MCDF administration fee <sup>(1)</sup>  | 2375 | 2145 |
|  Special Funds administration fee | 1341 | 1112 |
|  Cofinancing service income | 35 | 245 |
|  **Total fee and commission income** | **51537** | **48111** |
|  Cofinancing service fee | (3795) | (5150) |
|  **Total fee and commission expense** | **(3795)** | **(5150)** |
|  **Net fee and commission income** | **47742** | **42961** |

---

<sup>(1)</sup> According to the Governing Instrument of the Finance Facility of the Multilateral Cooperation Center for Development Finance ("MCDF Finance Facility") and the agreement on the terms and conditions of service as the administrator ("Administrator") of the MCDF Finance Facility, the Bank provides administrative and financial services to the MCDF Finance Facility, including hosting of the Secretariat of the Multilateral Cooperation Center for Development Finance ("MCDF"). Therefore, the Bank charges an administration fee for the services provided as the Administrator of the MCDF Finance Facility. The MCDF serves as a multilateral initiative to foster high-quality infrastructure and connectivity investments in developing countries. 

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C3** | **Net gain on financial instruments measured at fair value and foreign exchange**  |

---

---

| | | |
|:---|:---|:---|
|  | **For the year ended<br>Dec. 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**For the year ended**<br> **Dec. 31, 2024** |
|  Money Market Funds (Note C6) | 41310 | 81803 |
|  Investments at fair value through profit or loss (Note C7) | 963343 | 525714 |
|  Borrowings (Note C12) | (1808492) | 194818 |
|  Derivatives (Note C13): |  |  |
|  - Borrowings associated | 1147850 | (1006323) |
|  - Investments operations associated | (583029) | 337458 |
|  - Treasury investments associated | (166739) | 384913 |
|  **Net (loss)/gain on financial instruments measured at fair value through profit or loss** | **(405757)** | **518383** |
|  Net foreign exchange gain/(loss)<sup>(1)</sup> | 658517 | (290807) |
| **Total** | **252760** | **227576** |

---

<sup>(1)</sup> The Bank uses derivatives to hedge net foreign currency exposures. Therefore, the net foreign exchange gains or losses arising from non-USD monetary items can be partially offset by the net gains or losses derived from derivative instruments.

---

| | |
|:---|:---|
| **C4** | **Impairment provision**  |

---

---

| | | |
|:---|:---|:---|
|  | **For the year ended<br>Dec. 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**For the year ended**<br> **Dec. 31, 2024** |
| &nbsp;&nbsp; Loan investments | (75956) | (60077) |
| &nbsp;&nbsp; Debt securities | (4847) | 3997 |
| &nbsp;&nbsp; Guarantees | (361) | 240 |
| **Total impairment provision** | **(81164)** | **(55840)** |

---

---

| | |
|:---|:---|
| **C5** | **General and administrative expenses**  |

---

---

| | | |
|:---|:---|:---|
|  | **For the year ended<br>Dec. 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**For the year ended**<br> **Dec. 31, 2024** |
|  Staff cost <sup>(1)</sup>  | 165533 | 138118 |
|  Professional service expenses | 46329 | 45112 |
|  IT services | 26521 | 25143 |
|  Facilities and administration expenses | 19782 | 16419 |
|  Travel expenses | 18076 | 15261 |
|  Issuance cost for borrowings | 10233 | 9047 |
|  Annual audit fee | 1060 | 1060 |
|  Others | 16134 | 14720 |
| **Total general and administrative expenses** | **303668** | **264880** |

---

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C5** | **General and administrative expenses (Continued)**  |

---

<sup>(1)</sup> Staff costs

---

| | | |
|:---|:---|:---|
|  | **For the year ended**<br> **Dec. 31, 2025** | **For the year ended**<br> **Dec. 31, 2024** |
|  Short-term employee benefits | &nbsp;&nbsp;&nbsp;&nbsp;144278 | 117426 |
|  Defined contribution plans | 19348 | 18968 |
|  Others | 1907 | 1724 |
| **Total** | **165533** | **138118** |

---

Refer to Note C19 for details of key management remuneration.

---

| | |
|:---|:---|
| **C6** | **Cash, cash equivalent, and deposits with banks**  |

---

---

| | | |
|:---|:---|:---|
|  | **Dec. 31, 2025** | **Dec. 31, 2024** |
|  Cash |  |  |
|  Deposits with banks |  |  |
|  - Demand deposits <sup>(1)</sup> | 50503 | 46843 |
|  - Term deposits with initial maturity of three months or less | 2553094 | 1557222 |
|  Money Market Funds <sup>(2)</sup> | 691412 | 318474 |
|  **Total cash and cash equivalents** | **3295009** | **1922539** |
|  Add: term deposits with initial maturity more than three months <sup>(3)</sup> | 3138361 | 462012 |
|  **Total cash, cash equivalents, and deposits with banks** | **6433370** | **2384551** |

---

<sup>(1)</sup> USD26.74 million of demand deposits is segregated for the externally managed portfolios (Dec. 31, 2024: USD27.51 million).

<sup>(2)</sup> Money Market Funds

---

| | | |
|:---|:---|:---|
|  | **For the year ended**<br> **Dec. 31, 2025** | **For the year ended**<br> **Dec. 31, 2024** |
|  As at beginning of year | 318474 | 1150086 |
|  Additions | 23025400 | 22317336 |
|  Disposals | (22693772) | (23230751) |
|  Fair value gain, net | 41310 | 81803 |
|  **Total Money Market Funds** | **691412** | **318474** |

---

Money Market Funds ("MMFs") are rated triple-A equivalent and invest in a diversified portfolio of short-term high-quality assets. The objective of the investment is only to meet short-term cash commitments. The MMFs are subject to an insignificant risk of changes in value, with daily liquidity and an investment return comparable to normal USD denominated money market interest rates. The MMFs are exposed to credit, market and liquidity risks, and are measured at fair value.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C6** | **Cash, cash equivalent, and deposits with banks (Continued)**  |

---

<sup>(3)</sup> Term deposits with initial maturity more than three months have maturities up to 24 months. As at Dec. 31, 2025, USD3.14 billion of term deposits have remaining maturity within 12 months (Dec. 31, 2024: USD0.46 billion).

---

| | |
|:---|:---|
| **C7** | **Investments at fair value through profit or loss**  |

---

---

| | | |
|:---|:---|:---|
|  | **For the year ended**<br> **Dec. 31, 2025** | **For the year ended**<br> **Dec. 31, 2024** |
|  As at beginning of year | 14538941 | 16635658 |
|  Investment, net | (301297) | (2526831) |
|  Return of capital contributions | (100326) | (95600) |
|  Net gain of investments | 963343 | 525714 |
|  **Total investments at fair value through profit or loss** | **15100661** | **14538941** |

---

Analysis of investments at fair value through profit or loss:

---

| | | |
|:---|:---|:---|
|  | **Dec. 31, 2025** | **Dec. 31, 2024** |
|  **Treasury investments** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; External Managers Program (a) | 4720326 | 4456279 |
| &nbsp;&nbsp;&nbsp;&nbsp; Debt securities (b) | 8107639 | 8150398 |
|  **Subtotal** | **12827965** | **12606677** |
|  **Investment operations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Fixed income portfolio and debt securities (c) | 837523 | 676804 |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment with equity participation (d) | 1435173 | 1255460 |
|  **Subtotal** | **2272696** | **1932264** |
|  **Total investments at fair value through profit or loss** | **15100661** | **14538941** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Bank has engaged external asset managers to invest in portfolios of high credit quality debt securities (the
"External Managers Program"). The portfolios are fair value measured and securities are eligible for sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Bank invests mainly in debt securities of high credit quality, such as bonds, certificates of deposit and
commercial papers, which are mostly actively managed within treasury investment portfolio. The debt securities are measured at fair value through profit or loss.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C7** | **Investments at fair value through profit or loss (Continued)**  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Bank has engaged an external asset manager to invest in a fixed-income portfolio, which is to develop the climate
bond markets in Asia, composing of labeled green bonds and unlabeled climate-aligned bonds. Separately, the Bank also invests in securities for infrastructure and development purposes in its investment operations portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Bank holds investments with equity participation which includes limited partnership funds ("LP
Funds"), trust, associates through venture capital and others.

LP Funds are managed by the general partners, who manage all investments on behalf of the limited partners. The Bank, along with other investors, has entered into the LP Funds as a limited partner.

As at Dec. 31, 2025, the Bank held USD125.72 million investments in associates through venture capital (Dec. 31, 2024: USD124.54 million), which are measured at fair value through profit or loss in accordance with IFRS 9 by applying the exemption from adopting the equity method under IAS 28. For the year ended Dec. 31, 2025, these investments recorded a fair value gain of USD7.28 million, which is included in Note C3 (for the year ended Dec. 31, 2024: fair value gain of USD12.37 million). <br>

The total remaining capital commitment for investments with equity participation is USD938.95 million as at Dec. 31, 2025 (Dec. 31, 2024: USD1,059.08 million), based on drawdown notices issued. The investments with equity participation do not have a fixed exit date. <br>

Please refer to Note C19 for the transactions with associates through venture capital.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C8** | **Loan investments, loan commitments and related ECL allowance**  |

---

---

| | | |
|:---|:---|:---|
| **Loan investments** | **Dec. 31, 2025** | **Dec. 31, 2024** |
|  Gross carrying amount | 29748360 | 26835342 |
|  ECL allowance | (121780) | (198277) |
|  **Net carrying amount** | **29626580** | **26637065** |

---

Loan investments are carried at amortized cost. At initial recognition, loan investments are measured at fair value using the assumptions market participants of either sovereign-backed or nonsovereign-backed projects would use when pricing the loan assets. The market where the Bank enters into such transactions is considered to be the principal market. The transaction price normally represents the fair value of loans at their initial recognition.

All sovereign-backed loans to eligible members are subject to the same pricing, taking into account the Preferred Creditor Status ("PCS") and other terms giving the Bank rights more favorable than those available to commercial creditors. The Bank applies commercial pricing practices to nonsovereign-backed loans. The Bank has no intention to sell sovereign-backed loans, nor does it believe there is a secondary market for such loans.

The Bank began offering variable spread loans in 2019 where the lending rate consists of a variable reference rate and a variable spread. The variable spread consists of a fixed contractual lending spread and maturity premium along with a variable borrowing cost margin. The reference rate and the borrowing cost margin are determined at each interest rate reset date and are applicable for the following six months. The borrowing cost margin is based on the cost of the underlying funding for these loans at the time of the reset. As at Dec. 31, 2025, USD21,076.65 million of the total carrying amount of the Bank's loans are variable spread loans (Dec. 31, 2024: USD18,687.87 million).

As at Dec. 31, 2025, USD1,765.89 million of the total carrying amount matures within 12 months (Dec. 31, 2024: USD1,823.01 million).

The following table sets out overall information about the ECL of loan investments and loan commitments issued as at Dec. 31, 2025. The gross amounts of loans are net of the transaction costs and fees that are capitalized through the effective interest method, or EIR method. Loan commitment is recorded based on the legal obligation of the Bank to provide the financing, for which the Bank does not have the full discretion to withdraw.

---

| | | |
|:---|:---|:---|
|  | **Dec. 31, 2025** | **Dec. 31, 2024** |
|  Loan investments, gross carrying amount | 29748360 | 26835342 |
|  Undrawn loan commitments | 17340850 | 13005442 |
|  | 47089210 | 39840784 |
|  Total ECL allowance (a) | (122756) | (198712) |
|  | **46966454** | **39642072** |

---

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C8** | **Loan investments, loan commitments and related ECL allowance (Continued)**  |

---

During the year ended Dec. 31, 2025, new loan investments and loan commitments with an amount of USD9,150.11 million, including sovereign-backed loans of USD7,715.84 million, with risk buckets from low risk to very high risk (Note D3), and nonsovereign-backed loans of USD1,434.27 million, with risk buckets from medium risk to high risk, are included in the assessment of ECL at Dec. 31, 2025 (Dec. 31, 2024: USD7,575.51 million, including sovereign-backed loans of USD6,450.06 million, risk buckets from low risk to very high risk, and nonsovereign-backed loans of USD1,125.45 million, risk buckets from low risk to high risk).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As at Dec. 31, 2025, the total ECL allowance related to loan commitments is USD0.98 million (Dec. 31, 2024:
USD0.44 million), and is presented as a provision in Note C14.

For the year ended Dec. 31, 2025, the impairment provision reversal on loan investments and loan commitments was USD75.96 million (impairment provision reversal for the year ended Dec. 31, 2024: USD60.08 million), as disclosed in Note C4.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C9** | **Debt securities at amortized cost**  |

---

---

| | | |
|:---|:---|:---|
|  | **Dec. 31, 2025** | **Dec. 31, 2024** |
|  **Treasury investments** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Externally managed fixed income portfolio (a) | 351329 | 413661 |
| &nbsp;&nbsp;&nbsp;&nbsp; Internally managed fixed income portfolio (b) | 10140767 | 10631623 |
| &nbsp;&nbsp;&nbsp;&nbsp; ECL allowance | (1157) | (2808) |
|  **Subtotal** | **10490939** | **11042476** |
|  **Investment operations** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment operations bond portfolios (c) | 813989 | 722185 |
| &nbsp;&nbsp;&nbsp;&nbsp; ECL allowance | (7836) | (16172) |
|  **Subtotal** | **806153** | **706013** |
|  **Net carrying amount** | **11297092** | **11748489** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Bank engaged an external asset manager to invest in a treasury investment portfolio of high credit quality
securities. The portfolio adopts a hold-to-maturity business strategy. The debt securities are initially recognized at fair value and subsequently measured at amortized
cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Bank has an internally managed treasury investment portfolio of high credit quality debt securities. The portfolio
adopts a hold-to-maturity business strategy. The debt securities are initially recognized at fair value and subsequently measured at amortized cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Bank has engaged an external asset manager to invest in a fixed income debt securities investment portfolio which
comprises Asian infrastructure-related bonds. Separately, the Bank also invests in other debt securities through private placements. The debt securities are initially recognized at fair value and subsequently measured at amortized cost.

For the year ended Dec. 31, 2025, USD4.86 million net investment loss was recognized as a result of disposal of certain debt securities in the portfolios (for the year ended Dec. 31, 2024: USD0.18 million).

Debt securities at amortized cost are subject to credit losses estimated by applying an ECL model, assessed on a forward-looking basis. As at Dec. 31, 2025, ECL allowances of USD7.84 million and USD1.16 million have been provided respectively to debt securities in investment operations and treasury investment portfolio (Dec. 31, 2024: USD16.17 million and USD2.81 million respectively).

As at Dec. 31, 2025, USD2,395.85 million of the gross carrying amount matures within 12 months (Dec. 31, 2024: USD2,858.41 million).

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C10** | **Paid-in capital receivables**  |

---

According to the AOA, payments for paid-in capital (refer to Note C15) are due in five installments, with the exception of members considered as less developed countries, who may pay in 10 installments. Paid-in capital receivables represent amounts due from members in respect of paid-in capital. These amounts are initially recognized at fair value and subsequently measured at amortized cost. The fair value discount is accreted through income using the effective interest method. For the year ended Dec. 31, 2025, a total discount of USD0.67 million (for the year ended Dec. 31, 2024: USD0.09 million) has been debited to the reserve. An amount of USD0.28 million (for the year ended Dec. 31, 2024: USD0.67 million) has been accreted through income in the current year.

As at Dec. 31, 2025, overdue contractual undiscounted paid-in capital receivables amounted to USD203.98 million (Dec. 31, 2024: USD218.35 million) (Note C15) are not considered impaired.

As at Dec. 31, 2025, USD213.68 million (Dec. 31, 2024: USD226.77 million) of the paid-in capital balance is due within 12 months.

---

| | | |
|:---|:---|:---|
|  | **For the year ended<br>Dec. 31, 2025** | **For the year ended<br>Dec. 31, 2024** |
|  As at the beginning of year | 234336 | 262637 |
|  Paid-in capital receivables originated | 118228 | 2010 |
|  Contributions received | (132719) | (30777) |
|  Transfer from prepaid paid-in capital to contribution | (496) | (200) |
|  Accretion to profit or loss | 276 | 666 |
|  **Total paid-in capital receivable** | **219625** | **234336** |

---

---

| | |
|:---|:---|
| **C11** | **Other assets**  |

---

---

| | | |
|:---|:---|:---|
|  | **Dec. 31, 2025** | **Dec. 31, 2024** |
|  Receivable for unsettled trades | 366863 | 100918 |
|  Reverse repurchase agreements | 151894 |  |
|  Cash collateral receivable (Note C13) | 120879 | 614349 |
|  Prepayments | 11297 | 8729 |
|  Receivable for Special Funds and MCDF administration fees | 2470 | 2756 |
|  Others | 2279 | 1879 |
|  **Total other assets** | **655682** | **728631** |

---

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C12** | **Borrowings**  |

---

---

| | | |
|:---|:---|:---|
|  | **Dec. 31, 2025** | **Dec. 31, 2024** |
|  Borrowings carried at fair value | 36592173 | 31597860 |
|  Borrowings carried at amortized cost | 2477268 | 1355939 |
|  **Total borrowings** | **39069441** | **32953799** |

---

The Bank raises funds through various markets to support its operations and enhance the presence in the key capital markets which provide the Bank with cost-efficient funding levels. The Bank's debt issuance programs include the SEC-registered Shelf, Global Medium-Term Notes Programme, Australian Dollar and New Zealand Dollar Debt Issuance Programme, Renminbi Bond Issuance Program, and Euro Commercial Paper Programme (the "ECP"). Among these funding sources, the SEC-registered fixed-rate global notes have been the primary program of the Bank's borrowing activities. These funding initiatives have enabled the Bank to access diverse sources of capital and strengthen its financial position.

The following table sets out the details of the outstanding amount by denominated currency.

---

| | | |
|:---|:---|:---|
| **Denominated currency** | **Dec. 31, 2025** | **Dec. 31, 2024** |
|  USD | 23179404 | 19669284 |
|  EUR | 4389314 | 2875429 |
|  GBP | 3752804 | 4081553 |
|  CNY | 3027208 | 2696075 |
|  AUD | 1363521 | 931979 |
|  INR | 1202306 | 1070727 |
|  HKD | 1158214 | 760550 |
|  CHF | 394729 | 244061 |
|  MXN | 230293 | 120519 |
|  Others | 371648 | 503622 |
|  **Total** | **39069441** | **32953799** |

---

Borrowings that are paired with swaps are designated as financial liabilities at fair value through profit or loss. The designation significantly reduces accounting mismatches that would otherwise arise if the borrowings were carried at amortized cost while the related swaps are carried at fair value. Interest from borrowings is calculated based on outstanding balances of the borrowings and coupon rates and presented as interest expense in the Statement of Comprehensive Income.

Floating rate notes and ECP are carried at amortized cost with interest expenses recognized under the effective interest rate method.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C12** | **Borrowings (Continued)**  |

---

The fair value changes for financial liabilities that are designated as at fair value through profit or loss that are attributable to changes in the Bank's own credit risk, are recognized in other comprehensive income in accordance with the requirements of IFRS 9. Fair value movements attributable to changes in the Bank's own credit risk are determined using the mark-to-market approach by applying an observable own credit spread curve to the Bank's exposure at the reporting date.

For the year ended Dec. 31, 2025, the fair value gain attributable to changes in the Bank's own credit risk included in the other comprehensive income amounted to USD79.05 million (for the year ended Dec. 31, 2024: fair value loss of USD142.01 million).

The following table sets out information about changes in liabilities arising from borrowing activities, including changes arising from cash flows and noncash changes.

---

| | | |
|:---|:---|:---|
|  | **For the year ended<br>Dec. 31, 2025** | **For the year ended<br>Dec. 31, 2024** |
|  As at beginning of year | 32953799 | 30528131 |
|  Changes arising from cash flows |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Proceeds from borrowings, net | 20923652 | 14047018 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Repayment of borrowings | (16678372) | (11655017) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Interest payments | (1160479) | (1071831) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Issuance cost for borrowings | 10233 | 9047 |
|  Non-cash changes |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Accrued interest | 1291168 | 1149257 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Changes in fair value included in the other comprehensive income | (79052) | 142012 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Changes in fair values included in profit or loss (Note C3) | 1808492 | (194818) |
|  **Total borrowings** | **39069441** | **32953799** |

---

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C13** | **Derivatives**  |

---

As at Dec. 31, 2025, the Bank has entered into several interest rate swap, foreign exchange forward and cross currency swap contracts. The Bank makes use of derivatives primarily to hedge the Bank's borrowings, so as to convert issuance proceeds into the currency and interest rate structure sought by the Bank. The Bank also uses derivatives to manage the net interest rate and foreign exchange risks arising from its financial assets including, but not limited to, loans, certificates of deposit and bond investments.

Derivative contracts are financial instruments valued at each reporting date using valuation techniques that consider observable market data such as yield curves, interest rates, and foreign currency rates. Net interest paid or received on these derivative contracts is included within the net gain on financial instruments.

The following table sets out the contractual notional amounts and fair values of the derivatives as at Dec. 31, 2025 and Dec. 31, 2024. The payments under each of the derivative contracts are subject to enforceable master netting arrangements.

---

| | | | |
|:---|:---|:---|:---|
|  | **As at Dec. 31, 2025** | **As at Dec. 31, 2025** | **As at Dec. 31, 2025** |
|  | **Contractual notional** | **Fair value** | **Fair value** |
|  | **amount** | **Assets** | **Liabilities** |
|  **Derivatives** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest rate swaps | 31152237 | 355304 | 43025 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cross currency swaps | 23918869 | 947854 | 780179 |
| &nbsp;&nbsp;&nbsp;&nbsp; FX forwards | 1543226 | 9516 | 18718 |
|  **Total derivatives** | **56614332** | **1312674** | **841922** |
|  | **As at Dec. 31, 2024** | **As at Dec. 31, 2024** | **As at Dec. 31, 2024** |
|  | **Contractual notional** | **Fair value** | **Fair value** |
|  | **amount** | **Assets** | **Liabilities** |
|  **Derivatives** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest rate swaps | 29233488 | 186848 | 365326 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cross currency swaps | 21170690 | 573143 | 800848 |
| &nbsp;&nbsp;&nbsp;&nbsp; FX forwards | 2202738 | 72070 | 9411 |
|  **Total derivatives** | **52606916** | **832061** | **1175585** |

---

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C13** | **Derivatives (Continued)**  |

---

The table below presents the undiscounted cash flows in/(out) of the derivatives the Bank has entered into as at Dec. 31, 2025 and Dec. 31, 2024.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | | **As at Dec. 31, 2025** | **As at Dec. 31, 2025** | | |
|  | **Less than 1<br>month** | **1-3**<br> **months** | **3-12**<br> **months** | **1-5**<br> **years** | **Over 5**<br> **years** | **Total** |
|  **Total Derivatives** |  |  |  |  |  |  |
|  Interest rate swaps | 51582 | 69856 | (71776) | 313108 | 43361 | 406131 |
|  Gross settling cross currency swaps - inflow | 140887 | 622921 | 4129296 | 16821621 | 6694501 | 28409226 |
|  Gross settling cross currency swaps - outflow | (148443) | (573928) | (4017317) | (16574884) | (6345551) | (27660123) |
|  Gross settling FX forwards - inflow | 477552 | 466446 | 599910 |  |  | 1543908 |
|  Gross settling FX forwards - outflow | (481326) | (470352) | (600388) |  |  | (1552066) |
|  **Total derivatives** | **40252** | **114943** | **39725** | **559845** | **392311** | **1147076** |
|  |  |  | **As at Dec. 31, 2024** | **As at Dec. 31, 2024** |  |  |
|  | **Less than 1<br>month** | **1-3**<br> **months** | **3-12**<br> **months** | **1-5**<br> **years** | **Over 5**<br> **years** | **Total** |
|  **Total Derivatives** |  |  |  |  |  |  |
|  Interest rate swaps | (4530) | 21557 | (254470) | 56429 | (1519) | (182533) |
|  Gross settling cross currency swaps - inflow | 418330 | 424420 | 4273174 | 15688201 | 3926744 | 24730869 |
|  Gross settling cross currency swaps - outflow | (407752) | (425956) | (4328376) | (15440357) | (3843978) | (24446419) |
|  Gross settling FX forwards - inflow | 548271 | 754050 | 816476 |  |  | 2118797 |
|  Gross settling FX forwards - outflow | (534221) | (736215) | (775191) |  |  | (2045627) |
|  **Total derivatives** | **20098** | **37856** | **(268387)** | **304273** | **81247** | **175087** |

---

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C13** | **Derivatives (Continued)**  |

---

The Bank requires collateral in the form of cash against the exposures to derivative counterparties. The Bank records cash collateral in respect of the interest rate swaps and cross currency swaps based on the fair value of the swaps. This amount is presented separately in the Bank's Statement of Financial Position as the cash flows are not applied towards the settlement of net interest payments. The collateral would only be applied against amounts due in the event that some or all the corresponding swaps are terminated early, including, but not limited to, as a result of a default by the relevant counterparty. As at Dec. 31, 2025, the Bank has received cash collateral of USD577.85 million (Note C14) (Dec. 31, 2024: USD264.36 million) from the swap counterparties, and has paid cash collateral of USD120.88 million (Note C11) (Dec. 31, 2024: USD614.35 million) to the swap counterparties.

Due to the collateral arrangements in the Bank's derivatives contracts, the counterparty valuation adjustment ("CVA") and debt valuation adjustment ("DVA") do not have a material impact on the derivative valuations as at Dec. 31, 2025 and Dec. 31, 2024.

The contractual notional amounts of the derivatives and carrying amount of the hedged financial instruments are as follows. The Bank's risk exposures have been well hedged. Therefore, the profit and loss are effectively managed on a net basis.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As at Dec. 31, 2025** | **As at Dec. 31, 2025** | **As at Dec. 31, 2024** | **As at Dec. 31, 2024** |
|  | **Contractual<br>notional amount<br>of derivative** | **Gross carrying<br>amount of<br>economically hedged**<br> **financial**<br> **instruments** | **Contractual<br>notional amount<br>of derivative** | **Gross carrying<br>amount of<br>economically hedged**<br> **financial**<br> **instruments** |
|  Borrowings related hedge | 35467863 | 36592173 | 36211901 | 31597860 |
|  Loans related hedge | 8183892 | 7332184 | 6481437 | 6307348 |
|  Debt securities related hedge in investment operations portfolio | 992744 | 993544 | 617847 | 585619 |

---

Derivatives with notional amount of USD11,969.83 million are under the management of treasury investment portfolio (Dec. 31, 2024: USD9,295.73 million).

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C14** | **Other liabilities**  |

---

---

| | | |
|:---|:---|:---|
|  | **Dec. 31, 2025** | **Dec. 31, 2024** |
|  Cash collateral payable (Note C13) | 577849 | 264357 |
|  Payable for unsettled trades | 288066 | 120698 |
|  Bank overdrafts | 162111 | 48306 |
|  Accrued expenses | 84907 | 35187 |
|  Deferred interest (Note C19) | 37543 | 39087 |
|  Staff cost payable | 9286 | 6929 |
|  Financial guarantee liabilities | 8480 | 10997 |
|  ECL provision for commitment of loan and debt securities | 1236 | 435 |
|  Lease liability | 38 | 481 |
|  Others | 699 | 2377 |
|  **Total other liabilities** | **1170215** | **528854** |

---

---

| | |
|:---|:---|
| **C15** | **Share capital**  |

---

---

| | | |
|:---|:---|:---|
|  | **Dec. 31, 2025** | **Dec. 31, 2024** |
|  Authorized capital | 100000000 | 100000000 |
|  – Allocated |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; – Subscribed | 97632200 | 97037800 |
| &nbsp;&nbsp;&nbsp;&nbsp; – Unsubscribed | 384800 | 974200 |
|  – Unallocated | 1983000 | 1988000 |
|  Total authorized capital | 100000000 | 100000000 |
|  Subscribed capital | 97632200 | 97037800 |
|  Less: callable capital | (78105800) | (77630300) |
|  Paid-in capital | 19526400 | 19407500 |
|  Paid-in capital comprises: |  |  |
|  – amounts received | 19305961 | 19172747 |
|  – amount due but not yet received | 203976 | 218353 |
|  – amount not yet due | 16463 | 16400 |
|  **Total paid-in capital** | **19526400** | **19407500** |

---

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C15** | **Share capital (Continued)**  |

---

In accordance with Articles 4 and 5 of the AOA, the initial authorized capital stock of the Bank is USD100 billion, divided into 1,000,000 shares, which shall be available for subscription only by members.

The original authorized capital stock is divided into paid-in shares and callable shares, with paid-in shares having an aggregate par value of USD20 billion and callable shares having an aggregate par value of USD80 billion.

Payment of the amount subscribed to the callable capital stock of the Bank shall be subject to call only as and when required by the Bank to meet its liabilities. Calls on unpaid subscriptions shall be uniform in percentage on all callable shares.

In accordance with Article 37 of the AOA, any member may withdraw from the Bank at any time by delivering a notice in writing to the Bank at its principal office. A withdrawing member remains liable for all direct and contingent obligations to the Bank to which it was subject at the date of delivery of the withdrawal notice. At the time a country ceases to be a member, the Bank shall arrange for the repurchase of such country's shares by the Bank as a part of the settlement of accounts with such country.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C15** | **Share capital (Continued)**  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Member** | Total<br>share | Subscribed<br>capital | Callable<br>capital | Paid-in<br>capital |
|  Afghanistan | 866 | 86600 | 69300 | 17300 |
|  Algeria | 50 | 5000 | 4000 | 1000 |
|  Argentina | 50 | 5000 | 4000 | 1000 |
|  Armenia | 374 | 37400 | 29900 | 7500 |
|  Australia | 36912 | 3691200 | 2953000 | 738200 |
|  Austria | 5008 | 500800 | 400600 | 100200 |
|  Azerbaijan | 2541 | 254100 | 203300 | 50800 |
|  Bahrain | 1036 | 103600 | 82900 | 20700 |
|  Bangladesh | 6605 | 660500 | 528400 | 132100 |
|  Belarus | 641 | 64100 | 51300 | 12800 |
|  Belgium | 2846 | 284600 | 227700 | 56900 |
|  Benin | 50 | 5000 | 4000 | 1000 |
|  Brazil | 50 | 5000 | 4000 | 1000 |
|  Brunei Darussalam | 524 | 52400 | 41900 | 10500 |
|  Cambodia | 623 | 62300 | 49800 | 12500 |
|  Canada | 9954 | 995400 | 796300 | 199100 |
|  Chile | 100 | 10000 | 8000 | 2000 |
|  China | 297804 | 29780400 | 23824300 | 5956100 |
|  Cook Islands | 5 | 500 | 400 | 100 |
|  Croatia | 50 | 5000 | 4000 | 1000 |
|  Cyprus | 200 | 20000 | 16000 | 4000 |
|  Côte d'Ivoire | 50 | 5000 | 4000 | 1000 |
|  Denmark | 3695 | 369500 | 295600 | 73900 |
|  Djibouti | 5 | 500 | 400 | 100 |
|  EI Salvador | 50 | 5000 | 4000 | 1000 |
|  Ecuador | 50 | 5000 | 4000 | 1000 |
|  Egypt | 6505 | 650500 | 520400 | 130100 |
|  Ethiopia | 458 | 45800 | 36600 | 9200 |
|  Fiji | 125 | 12500 | 10000 | 2500 |
|  Finland | 3103 | 310300 | 248200 | 62100 |
|  France | 33756 | 3375600 | 2700500 | 675100 |
|  Georgia | 539 | 53900 | 43100 | 10800 |
|  Germany | 44842 | 4484200 | 3587400 | 896800 |
|  Ghana | 50 | 5000 | 4000 | 1000 |
|  Greece | 100 | 10000 | 8000 | 2000 |
|  Guinea | 50 | 5000 | 4000 | 1000 |
|  Hong Kong, China | 7651 | 765100 | 612100 | 153000 |
|  Hungary | 1000 | 100000 | 80000 | 20000 |
|  Iceland | 176 | 17600 | 14100 | 3500 |
|  India | 83673 | 8367300 | 6693800 | 1673500 |

---

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C15** | **Share capital (Continued)**  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Member** | Total<br>share | Subscribed<br>capital | Callable<br>capital | Paid-in<br>capital |
|  Indonesia | 33607 | 3360700 | 2688600 | 672100 |
|  Iran | 15808 | 1580800 | 1264600 | 316200 |
|  Iraq | 250 | 25000 | 20000 | 5000 |
|  Ireland | 1313 | 131300 | 105000 | 26300 |
|  Israel | 7499 | 749900 | 599900 | 150000 |
|  Italy | 25718 | 2571800 | 2057400 | 514400 |
|  Jordan | 1192 | 119200 | 95400 | 23800 |
|  Kazakhstan | 7293 | 729300 | 583400 | 145900 |
|  Kenya | 50 | 5000 | 4000 | 1000 |
|  Korea | 37387 | 3738700 | 2991000 | 747700 |
|  Kuwait | 5360 | 536000 | 428800 | 107200 |
|  Kyrgyz Republic | 268 | 26800 | 21400 | 5400 |
|  Lao PDR | 430 | 43000 | 34400 | 8600 |
|  Liberia | 50 | 5000 | 4000 | 1000 |
|  Libya | 526 | 52600 | 42100 | 10500 |
|  Luxembourg | 697 | 69700 | 55800 | 13900 |
|  Madagascar | 50 | 5000 | 4000 | 1000 |
|  Malaysia | 1095 | 109500 | 87600 | 21900 |
|  Maldives | 72 | 7200 | 5800 | 1400 |
|  Malta | 136 | 13600 | 10900 | 2700 |
|  Mauritania | 50 | 5000 | 4000 | 1000 |
|  Mongolia | 411 | 41100 | 32900 | 8200 |
|  Morocco | 50 | 5000 | 4000 | 1000 |
|  Myanmar | 2645 | 264500 | 211600 | 52900 |
|  Nauru | 5 | 500 | 400 | 100 |
|  Nepal | 809 | 80900 | 64700 | 16200 |
|  Netherlands | 10313 | 1031300 | 825000 | 206300 |
|  New Zealand | 4615 | 461500 | 369200 | 92300 |
|  Norway | 5506 | 550600 | 440500 | 110100 |
|  Oman | 2592 | 259200 | 207400 | 51800 |
|  Pakistan | 10341 | 1034100 | 827300 | 206800 |
|  Papua New Guinea | 50 | 5000 | 4000 | 1000 |
|  Peru | 1546 | 154600 | 123700 | 30900 |
|  Philippines | 9791 | 979100 | 783300 | 195800 |
|  Poland | 8318 | 831800 | 665400 | 166400 |
|  Portugal | 650 | 65000 | 52000 | 13000 |
|  Qatar | 6044 | 604400 | 483500 | 120900 |
|  Romania | 1530 | 153000 | 122400 | 30600 |
|  Russia | 65362 | 6536200 | 5229000 | 1307200 |
|  Rwanda | 50 | 5000 | 4000 | 1000 |

---

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C15** | **Share capital (Continued)**  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Member** | Total<br>share | Subscribed<br>capital | Callable<br>capital | Paid-in<br>capital |
|  Samoa | 21 | 2100 | 1700 | 400 |
|  Saudi Arabia | 25446 | 2544600 | 2035700 | 508900 |
|  Senegal | 50 | 5000 | 4000 | 1000 |
|  Serbia | 50 | 5000 | 4000 | 1000 |
|  Singapore | 2500 | 250000 | 200000 | 50000 |
|  Solomon Islands | 5 | 500 | 400 | 100 |
|  South Africa | 50 | 5000 | 4000 | 1000 |
|  Spain | 17615 | 1761500 | 1409200 | 352300 |
|  Sri Lanka | 2690 | 269000 | 215200 | 53800 |
|  Sudan | 590 | 59000 | 47200 | 11800 |
|  Sweden | 6300 | 630000 | 504000 | 126000 |
|  Switzerland | 7064 | 706400 | 565100 | 141300 |
|  Tajikistan | 309 | 30900 | 24700 | 6200 |
|  Tanzania | 50 | 5000 | 4000 | 1000 |
|  Thailand | 14275 | 1427500 | 1142000 | 285500 |
|  Timor-Leste | 160 | 16000 | 12800 | 3200 |
|  Togo | 50 | 5000 | 4000 | 1000 |
|  Tonga | 12 | 1200 | 1000 | 200 |
|  Tunisia | 50 | 5000 | 4000 | 1000 |
|  Türkiye | 26099 | 2609900 | 2087900 | 522000 |
|  United Arab Emirates | 11857 | 1185700 | 948600 | 237100 |
|  United Kingdom | 30547 | 3054700 | 2443800 | 610900 |
|  Uruguay | 50 | 5000 | 4000 | 1000 |
|  Uzbekistan | 2198 | 219800 | 175800 | 44000 |
|  Vanuatu | 5 | 500 | 400 | 100 |
|  Viet Nam | 6633 | 663300 | 530600 | 132700 |
|  **Total** | **976322** | **97632200** | **78105800** | **19526400** |

---

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C16** | **Reserves**  |

---

Based on Article 18.1 of the AOA, the Board of Governors shall determine at least annually what part of the net income of the Bank shall be allocated, after making provision for reserves, to retained earnings or other purposes and what part, if any, shall be distributed to the members.

---

| | |
|:---|:---|
| **C17** | **Distributions**  |

---

Retained earnings as at Dec. 31, 2025 are USD4,167.35 million (Dec. 31, 2024: USD3,244.21 million). For the year ended Dec. 31, 2025, USD0.28 million (for the year ended Dec. 31, 2024: USD0.67 million) of retained earnings has been transferred to the reserve for accretion of the paid-in capital receivables.

No dividends were declared during the reporting period.

---

| | |
|:---|:---|
| **C18** | **Unconsolidated structured entities**  |

---

Special Funds established and administered by the Bank based on Article 17.1 of the AOA are unconsolidated structured entities for accounting purposes. Consistent with Article 10 of the Bank's AOA, the resources of the Special Funds shall at all times and in all respects be held, used, committed, invested or otherwise disposed of entirely separately from the Bank's ordinary resources.

The Bank charges an administration fee based on the principle of full cost recovery on the contribution amount received by the Special Funds. The respective special funds bear all expenses appertaining directly to operations financed from the resources of the Special Funds.

Apart from Special Funds, other unconsolidated structured entities in which the Bank holds an interest as of the reporting date include LP funds, trusts, associates through venture capital, and other equity participation investments.

**The Project Preparation Special Fund** 

The objective of the Project Preparation Special Fund is to support and facilitate preparatory activities during the preparation and early implementation of projects, on a grant basis, for the benefit of one or more members of the Bank that, at the time when the decision to extend the grant is made by the Bank, are classified as recipients of financing from the International Development Association ("IDA"), and other members of the Bank with substantial development needs and capacity constraints.

The resources of the Project Preparation Special Fund consist of: (a) amounts accepted from any member of the Bank, any of its political or administrative subdivisions, or any entity under the control of the member or such subdivisions or any other country, entity or person approved by the President may become a contributor to the Special Funds; (b) income derived from investment of the resources of the Special Funds; and (c) funds reimbursed to the Special Funds, if any.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C18** | **Unconsolidated structured entities (Continued)**  |

---

As at Dec. 31, 2025, the Project Preparation Special Fund aggregate contributions received amounted to USD129 million (Dec. 31, 2024: USD128 million). For the year ended Dec. 31, 2025, fees recognized as income amounted to USD0.01 million (for the year ended Dec. 31, 2024: USD0.17 million).

As at Dec. 31, 2025, there was no administration fee receivable by the Bank (Dec. 31, 2024: none).

**The Special Fund Window for Less Developed Members (the "Special Fund Window")** 

The Special Fund Window provides interest rate buy-down to eligible sovereign-backed financing aligned with AIIB's Corporate Strategy in eligible members according to the approved Rules and Regulations. The Special Fund Window is funded by the amounts transferred by the Bank from its Project Preparation Special Fund, and voluntary contributions from the Bank's Members.

For the year ended Dec. 31, 2025, fees recognized as income amounted to USD0.81 million (for the year ended Dec. 31, 2024: USD0.64 million).

As at Dec. 31, 2025, there was USD0.09 million administration fee receivable by the Bank (Dec. 31, 2024: USD0.61 million), and the interest rate buydown balance for eligible sovereign-backed loans from the Special Fund Window amounted to USD37.54 million (Dec. 31, 2024: USD39.09 million) (Note C14).

**AIIB Project-Specific Window** 

On March 19, 2024, the Bank established the Project-Specific Window for the Bank to accept, manage, and disburse external grants for the co-financing of eligible projects in the Bank's low- and middle-income members and small island members as defined in the Rules and Regulations of the AIIB Project-Specific Window.

The resource of the Project-Specific Window consists of contributions from eligible contributors to co-finance specific eligible projects approved by the contributors. Contributions received will be channeled and disbursed to the approved specific projects.

For the year ended Dec. 31, 2025, fees recognized as income amounted to USD0.16 million (for the year ended Dec. 31, 2024: none).

As at Dec. 31, 2025, there was no administration fee receivable by the Bank (Dec. 31, 2024: none).

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C18** | **Unconsolidated structured entities (Continued)**  |

---

**AIIB External Special Funds** 

Special Fund resources received by AIIB in its role as implementing entity of multilateral partnership facilities are considered as AIIB External Special Funds collectively. AIIB became the Global Infrastructure Facility Technical Partner ("GIF TP") on June 23, 2021 after executing the Financial Procedures Agreement; the MCDF Implementing Partner ("MCDF IP") on Aug. 9, 2021 after executing the Implementing Partner Agreement; the Pandemic Prevention, Preparedness and Response Trust Fund Implementing Entity ("PPR IE") on Feb. 10, 2023 after executing the Financial Procedures Agreement; and the Green Climate Fund Accredited Entity ("GCF AE") on June 25, 2025 after executing the Accreditation Master Agreement. Resources from the multilateral partnership facilities are administered in separate External Special Funds.

The Bank is not obliged to provide financial support to the Special Funds.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C19** | **Related party transactions**  |

---

Parties are generally considered to be related if the parties are under common control, or one party has the ability to control the other party or can exercise significant influence over the other party in making financial or operational decisions. In considering each possible related party relationship, attention is directed to the substance of the relationship, not merely to the legal form.

Major outstanding balances with related parties are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** |
|  | China related<br>entities | Key<br>management<br> personnel | Other<br>related<br>parties | China related<br>entities | Key<br>management<br> personnel | Other<br>related<br>parties |
|  Loan investments | 1682695 |  |  | 1525013 |  |  |
|  LP Fund | 72481 |  |  | 71798 |  |  |
|  Equity and debt security investments in/or related to associates through venture capital |  |  | 174520 |  |  | 183097 |
|  Other assets |  |  | 95 |  |  | 611 |
|  Staff loan |  | 65 |  |  | 13 |  |
|  Other liabilities |  | 550 | 37543 |  |  | 39087 |

---

The income and expense items affected by transactions with related parties are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the year ended**<br> **Dec. 31, 2025** | **For the year ended**<br> **Dec. 31, 2025** | **For the year ended**<br> **Dec. 31, 2025** | **For the year ended**<br> **Dec. 31, 2024** | **For the year ended**<br> **Dec. 31, 2024** | **For the year ended**<br> **Dec. 31, 2024** |
|  | China related<br>entities | Key<br>management<br> personnel | Other<br>related<br>parties | China related<br>entities | Key<br>management<br> personnel | Other<br>related<br>parties |
|  Income from loan investments | 68934 |  |  | 73146 |  |  |
|  Net gain/(loss) on LP fund | 1350 |  |  | (439) |  |  |
|  Net gain on equity and debt security investments in/or related to associates through venture capital |  |  | 11437 |  |  | 19912 |
|  Income from staff loan |  | 2 |  |  | 2 |  |
|  Income from Special<br> Funds (Administration Fee) |  |  | 981 |  |  | 811 |

---

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C19** | **Related party transactions (Continued)**  |

---

**Shareholder with significant influence** 

The Bank considers China as the member that has a significant influence over the Bank's financial and operating policies through its ability to exercise its voting powers in the Board. As at Dec. 31, 2025 the Government of China (the "Government") owned approximately 30.50% of the paid-in capital of the Bank (Dec. 31, 2024 approximately 30.69%).

The Bank enters into transactions with enterprises ultimately controlled by the Government (state-owned entities), including but not limited to, lending, debt securities, equity and fund investments, deposits and interbank placements, goods and services.

The Bank considers the transactions with China state-owned entities are activities conducted in the ordinary course of business, and the dealings of the Bank have not been significantly or unduly affected by the fact that these entities are ultimately controlled by the Government.

Significant transactions with China related entities are as follow：

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)** **Loan investments** 

The Bank has loan facilities to nonsovereign borrowers that are ultimately controlled by state-owned entities with a total outstanding balance of USD257.25 million as at Dec. 31, 2025 (Dec. 31, 2024: USD221.1 million). The Bank entered into the agreements with the borrowers in the ordinary course of business under normal commercial terms and at market rates.

The Bank has sovereign-backed facilities to China with a total outstanding balance of USD1,425.44 million equivalent as at Dec. 31, 2025 (Dec. 31, 2024: USD1,303.91 million). The Bank's standard interest rate for sovereign-backed loans has been applied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)** **LP Fund** 

In July 2019, the Bank approved a USD75 million investment into a limited partnership fund organized under the laws of Hong Kong, China and subscribed to an interest therein in November 2019. In addition to the Bank, the Government and other entities related therewith are also limited partners of the Fund. The Bank will not take part in the management of the Fund. As at Dec. 31, 2025, the fair value of the Bank's interest in the Fund is USD72.48 million (Dec. 31, 2024: USD71.80 million).

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C19** | **Related party transactions (Continued)**  |

---

Transactions with other related parties are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)** **Equity and debt security investments in/or related to associates** 

The fair value of the Bank's interest in the investments in associates through venture capital is USD125.72 million. As at Dec. 31, 2025, the Bank holds USD48.80 million of infrastructure asset-backed securities issued by one associate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)** **Transactions with Special Funds** 

As at Dec. 31, 2025, other assets include a receivable from Special Fund Window for the administration fee of USD0.09 million (Dec. 31, 2024: USD0.61 million).

As at Dec. 31, 2025, the interest rate buydown balance from Special Fund Window was USD37.54 million (Dec. 31, 2024: USD39.09 million).

**Key management personnel** 

Key management personnel are those persons who have the authority and responsibility to plan, direct, and control the activities of the Bank. Key management personnel of the Bank is defined as the members of the Bank's Executive Committee, that is, in accordance with the Terms of Reference of the Executive Committee dated Jan. 5, 2022, the President, the Vice Presidents, the General Counsel, the Chief Risk Officer, the Chief Financial Officer, and the Chief Economist. On Jan. 1, 2025, leadership positions of the Investment Client Units were titled as Chief Investment Officers. The Chief Investment Officers are members of the Bank's Executive Committee. On Sep. 1, 2025, the Chief Partnerships Officer was included as a member of the Bank's Executive Committee.

For the year ended Dec. 31, 2025 and the year ended Dec. 31, 2024, other than loan granted to key management personnel as disclosed above, the Bank has no material transactions with key management personnel.

The compensation of key management personnel for the year ended Dec. 31, 2025 comprises short-term employee benefits of USD5.13 million (for the year ended Dec. 31, 2024: USD4.43 million) and defined contribution plans of USD0.91 million (for the year ended Dec. 31, 2024: USD0.88 million).

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C19** | **Related party transactions (Continued)**  |

---

**Use of office building** 

In accordance with Article 5 of the Headquarters Agreement, Government will provide a permanent office building ("Permanent Premises") and temporary office accommodation to the Bank, free of charge. The Permanent Premises and temporary office accommodation are provided to the Bank for the purposes of carrying out its Official Activities, as defined in Article 1(k) of the Headquarters Agreement. The Bank does not have legal ownership of the Permanent Premises. Please refer to Headquarters Agreement disclosed on public domain of AIIB website.

The provision of the Permanent Premises and temporary office accommodation is not subject to any consideration payable by the Bank, or any conditions relating to the Bank's lending or investing activities. The Bank, however, remains responsible for the management of the Premises and/or for the associated costs, including that of utilities and services.

On June 1, 2020, the Bank officially moved to the Permanent Premises. The temporary office was returned to the Government on June 5, 2020.

The Permanent Premises of the Bank are located at Towers A and B, Asia Financial Center, No.1 Tianchen East Road, Chaoyang District, Beijing 100101 and, as of the reporting date, provides the Bank with approximately 110,866 square meters of office space and associated facilities and equipment.

On September 11, 2019, the People's Government of Tianjin Municipality (the "Tianjin Municipality") and the Bank entered into a Memorandum of Understanding (the "MOU"), in accordance with Article 5 of the Headquarters Agreement, to set out the arrangements regarding the premises of the Bank as its back-up business office in Tianjin (the "Tianjin Premises"). Specifically, according to the MOU, Tianjin Municipality will provide the Tianjin Premises to the Bank for its use, free of charge, similar to the arrangements for the Permanent Premises.

On March 31, 2021, Tianjin Municipality officially handed over the Tianjin Premises to the Bank. The Tianjin Premises are located at Level 25, Level 26, 3-14, No. 681, Ronghe Road, Binhai New Area, Tianjin, and provide the Bank with approximately 4,258 square meters of office space.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**C** **Disclosure Notes** 

---

| | |
|:---|:---|
| **C20** | **Segment reporting**  |

---

The Bank has only one reportable segment since financial results are reviewed and resource allocation decisions are made at the entity level.

The table below illustrates the geographic distribution of the Bank's loan and guarantee revenue by destination for the year ended Dec. 31, 2025, and Dec. 31, 2024.

Loan and guarantee revenue comprises loan interest income, loan commitment fee, guarantee fees and other service fees.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the year ended**<br> **Dec. 31, 2025** | **For the year ended**<br> **Dec. 31, 2025** | **For the year ended**<br> **Dec. 31, 2025** | **For the year ended**<br> **Dec. 31, 2024** | **For the year ended**<br> **Dec. 31, 2024** | **For the year ended**<br> **Dec. 31, 2024** |
| **Region** | **Sovereign**<br> **-backed loans**<br> **and guarantees** | **Nonsovereign<br>-backed**<br> **loans** | **Total** | **Sovereign**<br> **-backed loans**<br> **and guarantees** | **Nonsovereign**<br> **-backed**<br> **loans** | **Total** |
|  Central Asia | 126751 | 24657 | 151408 | 124991 | 19208 | 144199 |
|  Eastern Asia | 72964 | 14100 | 87064 | 77759 | 13900 | 91659 |
|  Southeastern Asia | 319687 | 29577 | 349264 | 321108 | 26261 | 347369 |
|  Southern Asia | 541258 | 30482 | 571740 | 561501 | 25129 | 586630 |
|  Western Asia | 196035 | 63601 | 259636 | 228557 | 77548 | 306105 |
|  Oceania | 5450 |  | 5450 | 7360 |  | 7360 |
|  Other Regional |  | 16573 | 16573 |  | 16405 | 16405 |
|  Total Regional | 1262145 | 178990 | 1441135 | 1321276 | 178451 | 1499727 |
|  Total Non- Regional | 52436 | 22655 | 75091 | 54918 | 17805 | 72723 |
|  **Total** | **1314581** | **201645** | **1516226** | **1376194** | **196256** | **1572450** |

---

---

| | |
|:---|:---|
| **C21** | **Events after the end of the reporting period**  |

---

There have been no other material events since the reporting date that would require disclosure or adjustment to these financial statements.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D1** | **Overview**  |

---

The Bank adopts a proactive and comprehensive approach to risk management that is instrumental to the Bank's financial viability and success in achieving its mandate. The ability to identify, mitigate and manage risk begins with the Bank's policies established with a strong risk culture. In addition to establishing appropriate risk parameters and a thorough and robust project review and monitoring process, the risk management function provides independent oversight of credit and other investment risk, market risk, liquidity risk, counterparty credit risk, model risk, operational risk and compliance risk in the Bank's activities. It is also designed to manage assets and liabilities to minimize the volatility in its equity value and to maintain sufficient liquidity.

---

| | |
|:---|:---|
| **D2** | **Financial risk management framework**  |

---

The Bank has developed its risk appetite in pursuit of AIIB's goals, objectives, and operating plan, consistent with applicable capital, liquidity and other requirements. The Board approves key risk policies, the risk appetite, including the top-down risk allocation, and the reporting of the Level 1 Key Risk Indicators ("KRIs") and Key Performance Indicators ("KPIs").

The Risk Committee is responsible for establishing the framework, which enables the Bank to effectively identify, measure, monitor and control risk exposures consistent with the Board-supported risk appetite.

The Risk Management Department has overall responsibility for overseeing the Bank's risk-taking activities, undertaking risk assessments and reporting independently from the business units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) Investment operations portfolio** 

All projects prepared by Investment Operations staff in compliance with the Bank's policies and procedures are reviewed via an internal investment process. This process entails a review and assessment by the relevant departments specific to their area, including but not limited to risk management, legal, finance, strategy, environmental and social aspects, and procurement. The Board of Directors delegates the authority to approve all projects of the Bank to the President, unless such projects fall within the exceptions set out in the Bank's Regulation on the Accountability Framework.

Responsibilities of various departments throughout the project lifecycle are delineated and regularly updated by the Bank's management.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D2** | **Financial risk management framework (Continued)**  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii) Treasury portfolio** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Investments

The treasury investment portfolio includes cash and deposits with banks, MMFs, bond investments, certificates of deposit, commercial papers and investment portfolios through the Bank's External Managers Program.

According to the Bank's General Investment and Financial Derivative Authority, the Bank can make investments in the assets specified in a list of eligible assets, including (but not limited to) term deposits, money market funds, and bonds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Borrowings

The Bank employs a strategy of issuing securities to establish its presence in the key capital markets, which provide the Bank with cost-efficient funding levels. Swaps may be used for asset and liability management purposes to match the liabilities resulting from such issuances of notes with the profile of the Bank's assets, such as loan investments and instruments that are part of the treasury portfolio.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks**  |

---

***Credit risk management***

The Bank takes on exposure to credit risk, which is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge a payment obligation. Exposure to credit risk arises from the Bank's lending and other transactions with counterparties resulting in financial assets and loan commitments.

The Bank is primarily exposed to credit risk in both its loan granting, debt securities, issuing of guarantees and deposit placing activities. The counterparties could default on their contractual obligations, or the carrying value of the Bank's investments could become impaired due to an increase in credit risk of the counterparty.

**AIIB internal rating scale** 

The Bank for investment operation positions.<sup>1</sup> adopts 16 internal rating grades that range from 1a (AA- or better equivalent) to 12 (CC and below), which can be mapped from Standard & Poor's ("S&P"), Moody's and Fitch. The Bank further classifies its internal ratings into five broader risk buckets ("Low Risk", "Medium Risk", "High Risk", "Very High Risk" and "Non-performing") for portfolio risk management purposes. The following table sets out the mapping between the Bank's internal rating with S&P credit ratings and the associated risk classifications:

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;**AIIB's Internal Rating** | **S&P Rating** | **Risk Buckets** | **Grade** |
| &nbsp;&nbsp;&nbsp;1a | AA- or better | Low Risk | Investment Grade |
| &nbsp;&nbsp;&nbsp;1b | A+ | Low Risk | Investment Grade |
| &nbsp;&nbsp;&nbsp;1c | A | Low Risk | Investment Grade |
| &nbsp;&nbsp;&nbsp;2 | A- | Low Risk | Investment Grade |
| &nbsp;&nbsp;&nbsp;3 | BBB+ | Low Risk | Investment Grade |
| &nbsp;&nbsp;&nbsp;4 | BBB & BBB- | Low Risk | Investment Grade |
| &nbsp;&nbsp;&nbsp;5 | BB+ | Medium Risk | Non-Investment Grade |
| &nbsp;&nbsp;&nbsp;6 | BB | Medium Risk | Non-Investment Grade |
| &nbsp;&nbsp;&nbsp;7 | BB- | Medium Risk | Non-Investment Grade |
| &nbsp;&nbsp;&nbsp;8 | B+ | High Risk | Non-Investment Grade |
| &nbsp;&nbsp;&nbsp;9 | B | High Risk | Non-Investment Grade |
| &nbsp;&nbsp;&nbsp;10 | B- | High Risk | Non-Investment Grade |
| &nbsp;&nbsp;&nbsp;11a | CCC+ | Very High Risk | Non-Investment Grade |
| &nbsp;&nbsp;&nbsp;11b | CCC | Very High Risk | Non-Investment Grade |
| &nbsp;&nbsp;&nbsp;11c | CCC- | Very High Risk | Non-Investment Grade |
| &nbsp;&nbsp;&nbsp;12 | CC and below | Non-performing | Non-Investment Grade |

---

<sup>1</sup> For Treasury Investments, AIIB adopts the counterparty credit ratings aligned with Basel principles through mapping from external ratings by S&P, Moody's and Fitch. The associated risk classifications follow the same mapping rule with investment operation positions.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Credit risk management (Continued)***

The Bank's internal ratings are then mapped to probabilities of default (PD). As at Dec. 31, 2025, the annualized probability of default ("PD") applied to both sovereign-backed and nonsovereign-backed financings ranges between 0.02%-0.19% for "Low Risk" bucket, 0.33%-1.08% for "Medium Risk" bucket, 2.13%-7.09% for "High Risk" bucket and 18.24%-47.87% for "Very High Risk" bucket. Annualized PD for the internal rating of 12 is deemed as 100% (Dec. 31, 2024: 0.02%-0.20% for "Low Risk", 0.34%-1.09% for "Medium Risk", 2.13%-6.84% for "High Risk" and 16.76%-48.83% for "Very High Risk", annualized PD for the internal rating of 12 deemed 100%).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) Credit risk in the investment operations portfolio** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sovereign-backed financings

Sovereign-backed financing is (1) a loan to, or guaranteed by, a member, or (2) a guarantee issued by the Bank that (a) covers debt service defaults under a loan that are caused by a government's failure to meet a specific obligation in relation to a project or by an obligor's failure to make a payment under the loan and (b) is accompanied by a counter-guarantee and indemnity by the member concerned.

The Bank assigns an internal credit rating to a sovereign member based on its own fundamental sovereign credit assessment, while taking into account the analysis of the three External Credit Assessment Institutions ("ECAIs"). The final internal rating is further adjusted for the PCS, which refers to the preferential treatment Multilateral Development Banks ("MDBs") have historically received in sovereign lending, experiencing lower default rates. The appraisal of sovereign-backed loans or guarantees considers, as appropriate, a full assessment of the project's benefits and risks.

As an international financial institution, the Bank does not participate in country debt rescheduling or debt reduction exercises of sovereign-backed loans or guarantees.

For sovereign-backed loans, when an obligor fails to make payment on any principal, interest or other charge due to the Bank, the Bank may suspend disbursements immediately on all loans to that obligor. The conditions for suspension of sovereign loans are presented in more detail in the Bank's operational policies. Under its operational policies, the Bank would cease making new sovereign-backed loans to the obligor once any loans are overdue by more than 30 days and suspend all disbursements to or guaranteed by the member concerned once any loans are overdue by more than 60 days. The Bank's remedies in respect of a guarantee may, depending on the transaction, include the right to suspend, terminate or withhold payments under the guarantee.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Credit risk management (Continued)***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nonsovereign-backed financings

The Bank provides private enterprises, state-owned or state-controlled enterprises with loan or debt securities that do not have a full member guarantee.

For nonsovereign-backed financings, the Bank assigns an internal credit rating of the obligor using S&P credit rating scorecards combined with expert analysis. These scorecards incorporate the quantitative and qualitative factors associated with the obligor, covering a range of different segments of the portfolio, including project finance, corporate finance, utilities, financial institutions (banks and non-banks), local and regional governments.

In the limited cases where the Bank holds exposures through a third party or does not hold a scorecard, the Bank maps external ratings from the three ECAIs to internal rating scale. If no ECAI rating is available and the Bank has no control over third-party investment decisions, the internal rating shall be sourced from the external party's rating system and mapped to the Bank's internal rating scale, subject to Chief Risk Officer-approved limits. The Bank applies governance controls over the use of third-party ratings, including assessment of rating methodologies and ongoing data availability.

***Other investment risks***

*Investment with equity participation* 

The Bank's investments with equity participation which includes LP Funds, trust, venture capital associates and others are classified as FVPL. They are classified as debt or equity instruments in the financial statements under the requirement of IFRS 9. Refer to Note C7 for details of those investments.

Where a fund investment comprises of debt instruments the Bank (where applicable) performs a "look-through" analysis to measure the underlying credit risks. From the Bank's risk management perspective, the Bank treats fund investments in its banking portfolio, such as limited partnership funds and trust investments, with equity nature of participation in the same way as equity investments when they have the following features:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) An investment entitles the Bank to distributions according to the pre-determined arrangements during its life and upon liquidation; such distribution arrangements are set out in the Limited Partnership Agreement or Contribution Agreement (or any similar agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The investment does not promise a particular return to holders. The ultimate amount of distributions depends on the
performance of the underlying portfolio.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Credit risk management (Continued)***

As at Dec. 31, 2025, such investments with equity participation amounted to USD1,435.17 million and are managed as equity-like investments for capital risk management and risk monitoring purposes (Dec. 31, 2024: USD1,255.46 million).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(ii) Credit risk in the treasury investment portfolio** 

Treasury activities and risk appetite are managed in line with the Bank's Risk Management Framework. The Bank has a limits policy which determines the maximum exposure to eligible counterparties and instruments. Eligible counterparties must have a single A minus credit rating or higher. All individual counterparty and investment credit lines are monitored and reviewed by the Risk Management Department periodically.

As at Dec. 31, 2025, counterparties of the treasury investment portfolio have credit ratings of single A minus or higher. The credit risk of the treasury portfolio is mainly from the deposits, MMFs, bond investments, commercial papers, certificates of deposit and External Managers Program. However, given the high credit quality, no significant loss provisions are made for the treasury investment portfolio for the year ended Dec. 31, 2025.

The Bank has counterparty credit risk through the transaction of derivatives to hedge the interest rate and currency risks from its funding, investment, and lending activities. The exposure present from these derivatives is managed through the Bank holding a Credit Support Annex with each of the counterparties. This enables the exchange of cash collateral (subject to minimum threshold amounts) against the prevailing value of the derivatives. This is supplemented with the requirement for the counterparty to post initial margin in the case of its external credit rating falling below an agreed level, which would mitigate against the Bank experiencing losses while replacement derivatives are put in place.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Credit quality analysis***

Except for loan investments, debt securities and issued guarantee commitments, other financial assets are paid-in capital receivables, deposits with banks and MMFs, for which the credit risk is not material.

The following table sets out the gross carrying amount and undrawn commitments for sovereign-backed loans and guarantees, nonsovereign-backed loans exclusive of any received sovereign guarantees, and debt securities at amortized cost under investment operations and treasury investments with their respective ECL allowance balance as at Dec. 31, 2025.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** |
|  | <br> **Gross**<br> **Carrying**<br> **amount** | **Undrawn<br>Commitments** | **ECL** | **Gross**<br> **Carrying**<br> **amount** | **Undrawn<br>Commitments** | **ECL** |
|  **Investment operations** |  |  |  |  |  |  |
|  Sovereign-backed loans and guarantees | 26661205 | 17405446 | (31964) | 24433825 | 13212112 | (64178) |
|  Nonsovereign-backed loans | 3087155 | 1190145 | (91530) | 2401517 | 1137060 | (135634) |
|  Debt securities | 813989 | 75221 | (8096) | 722185 |  | (16172) |
|  **Subtotal** | **30562349** | **18670812** | **(131590)** | **27557527** | **14349172** | **(215984)** |
|  **Treasury investments** |  |  |  |  |  |  |
|  Debt securities | 10492096 |  | (1157) | 11045284 |  | (2808) |
|  **Total** | **41054445** | **18670812** | **(132747)** | **38602811** | **14349172** | **(218792)** |

---

The maximum credit risk exposure of the issued financial guarantees as at Dec. 31, 2025 is USD1,254.74 million (Dec. 31, 2024: USD1,343.73 million), with an associated ECL allowance of USD0.74 million (Dec 31, 2024: USD1.10 million). The issued financial guarantees are classified as Stage 1.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Credit quality analysis (Continued)***

The following table sets out the credit quality of loan investments (gross carrying amount of loans and exposure of loan commitments), issued guarantee commitments, debt securities at amortized cost and commitments, and debt securities at fair value through profit or loss segmented by buckets of the Bank's internal credit rating system.

*Loans and guarantees* 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** |
| **Risk buckets** | **Stage 1** | **Stage 2** | **Total** | **Stage 1** | **Stage 2** | **Total** |
|  **Sovereign-backed loans and guarantees** |  |  |  |  |  |  |
|  Low Risk | 24414946 |  | 24414946 | 21809255 |  | 21809255 |
|  Medium Risk | 13274663 |  | 13274663 | 10739863 |  | 10739863 |
|  High Risk | 5845378 | 344098 | 6189476 | 4137214 | 406583 | 4543797 |
|  Very High Risk | 152034 | 35532 | 187566 | 82745 | 470277 | 553022 |
|  Non-performing |  |  |  |  |  |  |
|  **Subtotal** | **43687021** | **379630** | **44066651** | **36769077** | **876860** | **37645937** |
|  **Nonsovereign-backed loans** |  |  |  |  |  |  |
|  Low Risk | 658080 | 26222 | 684302 | 755068 |  | 755068 |
|  Medium Risk | 2020719 | 175829 | 2196548 | 1288134 |  | 1288134 |
|  High Risk | 765338 | 504695 | 1270033 | 991777 | 355123 | 1346900 |
|  Very High Risk |  | 126417 | 126417 |  | 148474 | 148474 |
|  Non-performing |  |  |  |  |  |  |
|  **Subtotal** | **3444137** | **833163** | **4277300** | **3034979** | **503597** | **3538576** |
|  **Total** | **47131158** | **1212793** | **48343951** | **39804056** | **1380457** | **41184513** |

---

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Credit quality analysis (Continued)***

***Debt securities at amortized cost***

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** |
| **Risk buckets** | **Stage 1** | **Stage 2** | **Stage 3** | **Total** | **Stage 1** | **Stage 2** | **Stage 3** | **Total** |
|  **Investment operations** |  |  |  |  |  |  |  |  |
|  Low Risk | 438430 |  |  | 438430 | 402713 |  |  | 402713 |
|  Medium Risk | 378987 |  |  | 378987 | 289365 |  |  | 289365 |
|  High Risk | 66724 |  |  | 66724 | 15119 |  |  | 15119 |
|  Very High Risk |  |  |  |  |  |  |  |  |
|  Non-performing |  |  | 5069 | 5069 |  |  | 14988 | 14988 |
|  **Subtotal** | **884141** |  | **5069** | **889210** | **707197** |  | **14988** | **722185** |
|  **Treasury investments** |  |  |  |  |  |  |  |  |
|  Low Risk | 10492096 |  |  | 10492096 | 11045284 |  |  | 11045284 |
|  Medium Risk |  |  |  |  |  |  |  |  |
|  High Risk |  |  |  |  |  |  |  |  |
|  Very High Risk |  |  |  |  |  |  |  |  |
|  Non-performing |  |  |  |  |  |  |  |  |
|  **Subtotal** | **10492096** |  | **—** | **10492096** | **11045284** |  | **—** | **11045284** |

---

***Debt securities at fair value through profit or loss***

---

| | | |
|:---|:---|:---|
| **Risk buckets** | **Dec. 31, 2025** | **Dec. 31, 2024** |
|  **Investment operations** |  |  |
|  Low Risk | 552261 | 399395 |
|  Medium Risk | 204151 | 201865 |
|  High Risk | 81111 | 75544 |
|  Very High Risk |  |  |
|  Non-performing |  |  |
|  **Subtotal** | **837523** | **676804** |
|  **Treasury investments** |  |  |
|  Low Risk | 12827965 | 12606677 |
|  Medium Risk |  |  |
|  High Risk |  |  |
|  Very High Risk |  |  |
|  Non-performing |  |  |
|  **Subtotal** | **12827965** | **12606677** |
|  **Total** | **13665488** | **13283481** |

---

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Credit quality analysis (Continued)***

As at Dec. 31, 2025, none of debt securities measured at fair value in the investment operations portfolio were assessed as credit impaired or known as non-performing assets (Dec 31, 2024: none). Since the carrying value of the investments has been marked to market value, there is no impairment provision required for these debt securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Concentration of credit risk in investment operations portfolio

The geographical distribution by the destination of the Bank's loan investments (gross carrying amount of loans and exposure of undrawn loan commitments), issued guarantee commitments and associated ECL is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** |
| **Region** | **Stage 1** | **Stage 2** | **Total** | **Stage 1** | **Stage 2** | **Total** |
|  **Sovereign-backed loans and guarantees<sup>(1)</sup>** |  |  |  |  |  |  |
|  Central Asia | 4471062 |  | 4471062 | 3670967 | 50099 | 3721066 |
|  Eastern Asia | 3252562 |  | 3252562 | 2929068 |  | 2929068 |
|  Southeastern Asia | 10356967 | 35532 | 10392499 | 8853967 | 69720 | 8923687 |
|  Southern Asia | 16189840 | 344098 | 16533938 | 14159500 | 757041 | 14916541 |
|  Western Asia | 6322085 |  | 6322085 | 4796682 |  | 4796682 |
|  Oceania | 85388 |  | 85388 | 110445 |  | 110445 |
|  Total Regional | 40677904 | 379630 | 41057534 | 34520629 | 876860 | 35397489 |
|  Total Non-Regional | 3009117 |  | 3009117 | 2248448 |  | 2248448 |
|  **Subtotal** | **43687021** | **379630** | **44066651** | **36769077** | **876860** | **37645937** |
|  | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** |
| **Region** | **Stage 1** | **Stage 2** | **Total** | **Stage 1** | **Stage 2** | **Total** |
|  **ECL allowance** |  |  |  |  |  |  |
|  Central Asia | 1606 |  | 1606 | 1459 | 2395 | 3854 |
|  Eastern Asia | 363 |  | 363 | 393 |  | 393 |
|  Southeastern Asia | 1598 | 3399 | 4997 | 1495 | 7195 | 8690 |
|  Southern Asia | 14002 | 5459 | 19461 | 18405 | 26270 | 44675 |
|  Western Asia | 2899 |  | 2899 | 3614 |  | 3614 |
|  Oceania | 319 |  | 319 | 540 |  | 540 |
|  Total Regional | 20787 | 8858 | 29645 | 25906 | 35860 | 61766 |
|  Total Non-Regional | 2319 |  | 2319 | 2412 |  | 2412 |
|  **Subtotal** | **23106** | **8858** | **31964** | **28318** | **35860** | **64178** |

---

<sup>(1)</sup> The issued financial guarantees are classified as Stage 1.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Credit quality analysis (Continued)***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Concentration of credit risk in investment operations portfolio (Continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** |
| **Region** | **Stage 1** | **Stage 2** | **Total** | **Stage 1** | **Stage 2** | **Total** |
|  **Nonsovereign-backed loans** |  |  |  |  |  |  |
|  Central Asia | 575677 | 264962 | 840639 | 433911 | 93812 | 527723 |
|  Eastern Asia | 467056 |  | 467056 | 475002 |  | 475002 |
|  Southeastern<br> Asia | 550351 | 26221 | 576572 | 479076 |  | 479076 |
|  Southern Asia | 609210 | 152708 | 761918 | 393713 | 40746 | 434459 |
|  Western Asia | 943765 | 194582 | 1138347 | 1009900 | 43969 | 1053869 |
|  Other Regional |  |  |  |  | 220564 | 220564 |
|  Total Regional | 3146059 | 638473 | 3784532 | 2791602 | 399091 | 3190693 |
|  Total Non- Regional | 298078 | 194690 | 492768 | 243377 | 104506 | 347883 |
|  **Subtotal** | **3444137** | **833163** | **4277300** | **3034979** | **503597** | **3538576** |
|  **Total** | **47131158** | **1212793** | **48343951** | **39804056** | **1380457** | **41184513** |
|  | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** |
| **Region** | **Stage 1** | **Stage 2** | **Total** | **Stage 1** | **Stage 2** | **Total** |
|  **ECL allowance** |  |  |  |  |  |  |
|  Central Asia | 1572 | 17209 | 18781 | 471 | 13013 | 13484 |
|  Eastern Asia | 886 |  | 886 | 1293 |  | 1293 |
|  Southeastern<br> Asia | 2840 | 208 | 3048 | 2548 |  | 2548 |
|  Southern Asia | 684 | 16691 | 17375 | 2166 | 4501 | 6667 |
|  Western Asia | 4066 | 16587 | 20653 | 6583 | 4119 | 10702 |
|  Other Regional |  |  |  |  | 86141 | 86141 |
|  Total Regional | 10048 | 50695 | 60743 | 13061 | 107774 | 120835 |
|  Total Non- Regional | 617 | 30170 | 30787 | 3302 | 11497 | 14799 |
|  **Subtotal** | **10665** | **80865** | **91530** | **16363** | **119271** | **135634** |
|  **Total** | **33771** | **89723** | **123494** | **44681** | **155131** | **199812** |

---

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Credit quality analysis (Continued)***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Concentration of credit risk in investment operations portfolio (Continued)

The sector distribution of the proceeds of the Bank's projects for loan investments (gross carrying amount of loans and exposure of undrawn loan commitments), issued guarantee commitments and associated ECL is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** |
| **Sector** | **Stage 1** | **Stage 2** | **Total** | **Stage 1** | **Stage 2** | **Total** |
|  **Sovereign-backed loans and guarantees** |  |  |  |  |  |  |
|  CRF<sup>(1)</sup>-Economic Resilience/PBF<sup>(2)</sup> | 11215565 |  | 11215565 | 11488734 |  | 11488734 |
|  CRF-Finance/Liquidity | 457873 |  | 457873 | 634914 | 170213 | 805127 |
|  CRF-Public Health | 3266821 |  | 3266821 | 3217801 |  | 3217801 |
|  Education Infrastructure | 249891 |  | 249891 | 249841 |  | 249841 |
|  Energy | 5917897 | 286544 | 6204441 | 4593591 | 293322 | 4886913 |
|  Transport | 10661785 | 93086 | 10754871 | 7552870 | 213023 | 7765893 |
|  Urban | 2227739 |  | 2227739 | 1602243 | 200302 | 1802545 |
|  Water | 4213762 |  | 4213762 | 3823313 |  | 3823313 |
|  Health Infrastructure | 1361782 |  | 1361782 | 1007497 |  | 1007497 |
|  Multi-sector | 2914769 |  | 2914769 | 2098414 |  | 2098414 |
|  Others | 1199137 |  | 1199137 | 499859 |  | 499859 |
|  **Subtotal** | **43687021** | **379630** | **44066651** | **36769077** | **876860** | **37645937** |
|  | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** |
| **Sector** | **Stage 1** | **Stage 2** | **Total** | **Stage 1** | **Stage 2** | **Total** |
|  **ECL allowance** |  |  |  |  |  |  |
|  CRF-Economic Resilience/PBF | 10391 |  | 10391 | 14111 |  | 14111 |
|  CRF-Finance/Liquidity | 1098 |  | 1098 | 1831 | 3158 | 4989 |
|  CRF-Public Health | 997 |  | 997 | 1206 |  | 1206 |
|  Education Infrastructure | 30 |  | 30 | 13 |  | 13 |
|  Energy | 2403 | 4627 | 7030 | 2883 | 7886 | 10769 |
|  Transport | 1935 | 4231 | 6166 | 955 | 13076 | 14031 |
|  Urban | 1417 |  | 1417 | 813 | 11740 | 12553 |
|  Water | 1283 |  | 1283 | 1674 |  | 1674 |
|  Health Infrastructure | 15 |  | 15 | 16 |  | 16 |
|  Multi-sector | 1475 |  | 1475 | 2358 |  | 2358 |
|  Others | 2062 |  | 2062 | 2458 |  | 2458 |
|  **Subtotal** | **23106** | **8858** | **31964** | **28318** | **35860** | **64178** |

---

<sup>(1)</sup> Crisis Recovery Facility (CRF) supported AIIB's members and clients in alleviating and mitigating economic, financial and public health pressures arising from COVID-19.

<sup>(2)</sup> PBF refers to policy-based financing.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Credit quality analysis (Continued)***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Concentration of credit risk in investment operations portfolio (Continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** |
| **Sector** | **Stage 1** | **Stage 2** | **Total** | **Stage 1** | **Stage 2** | **Total** |
|  **Nonsovereign-backed loans** |  |  |  |  |  |  |
|  CRF-Finance/Liquidity | 213412 |  | 213412 | 355018 | 220564 | 575582 |
|  CRF-Public Health | 38284 |  | 38284 | 99502 |  | 99502 |
|  Digital Infrastructure<br> and Technology | 224029 |  | 224029 | 140755 |  | 140755 |
|  Energy | 1232418 | 544088 | 1776506 | 1041654 | 283033 | 1324687 |
|  Multi-sector | 716970 |  | 716970 | 347662 |  | 347662 |
|  Transport | 441216 | 289075 | 730291 | 583374 |  | 583374 |
|  Urban | 374009 |  | 374009 | 278666 |  | 278666 |
|  Education Infrastructure | 82109 |  | 82109 | 78769 |  | 78769 |
|  Health Infrastructure | 121690 |  | 121690 | 109579 |  | 109579 |
|  **Subtotal** | **3444137** | **833163** | **4277300** | **3034979** | **503597** | **3538576** |
|  **Total** | **47131158** | **1212793** | **48343951** | **39804056** | **1380457** | **41184513** |
|  | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2025** | **Dec. 31, 2024** | **Dec. 31, 2024** | **Dec. 31, 2024** |
| **Sector** | **Stage 1** | **Stage 2** | **Total** | **Stage 1** | **Stage 2** | **Total** |
|  **ECL allowance** |  |  |  |  |  |  |
|  CRF-Finance/Liquidity | 597 |  | 597 | 1842 | 86141 | 87983 |
|  CRF-Public Health | 87 |  | 87 | 361 |  | 361 |
|  Digital Infrastructure<br> and Technology | 813 |  | 813 | 330 |  | 330 |
|  Energy | 3128 | 46455 | 49583 | 4661 | 33130 | 37791 |
|  Multi-sector | 1431 |  | 1431 | 1989 |  | 1989 |
|  Transport | 2849 | 34410 | 37259 | 5760 |  | 5760 |
|  Urban | 973 |  | 973 | 1381 |  | 1381 |
|  Education Infrastructure | 292 |  | 292 | 7 |  | 7 |
|  Health Infrastructure | 495 |  | 495 | 32 |  | 32 |
|  **Subtotal** | **10665** | **80865** | **91530** | **16363** | **119271** | **135634** |
|  **Total** | **33771** | **89723** | **123494** | **44681** | **155131** | **199812** |

---

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Credit quality analysis (Continued)***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Credit enhancement

As at Dec. 31, 2025, the Bank's maximum exposure to credit risk from financial instruments other than loan commitments before taking into account any collateral held or other credit enhancements is their carrying amount presented in the Statement of Financial Position. The maximum exposure to credit risk from the undrawn loan commitments as at Dec. 31, 2025 is USD17,340.85 million (Dec. 31, 2024: USD13,005.44 million).

Credit enhancement for loan investments (gross carrying amount of loans and exposure of loan commitments) are as below:

---

| | | |
|:---|:---|:---|
|  | **Dec. 31, 2025** | **Dec. 31, 2024** |
|  Guaranteed by sovereign members | 3530462 | 3139428 |
|  Guaranteed by nonsovereign entities | 1820126 | 1216596 |
|  Unguaranteed <sup>(1)</sup> | 41738622 | 35484760 |
|  **Total** | **47089210** | **39840784** |

---

<sup>(1)</sup> The unguaranteed loan investments mainly represent sovereign loans and loan commitments granted to members that are not guaranteed in any respect. For loans in which guarantees cover only a portion of the amount, the entire exposure is classified under the guaranteed categories. 

The Bank mitigates the counterparty credit risk from its investments through the credit approval process, the use of collateral agreements, and risk limits. As at Dec. 31, 2025, the Bank holds project assets and certain securities as collateral for certain nonsovereign-backed loans, and cash collateral for derivative instruments, as well as risk transfer agreement signed with insurers. There was no other credit enhancement held as at Dec. 31, 2025 and Dec. 31, 2024.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Credit quality analysis (Continued)***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Movement analysis

Set out below are movement analyses of the gross carrying amount of loans, exposures of undrawn loan commitments, issued guarantee commitments, and debt securities with the related changes in ECL allowances.

**Sovereign-backed loans and issued guarantee commitments**

---

| | | | |
|:---|:---|:---|:---|
|  | **Stage 1** | **Stage 2** | **Total** |
|  **Gross carrying amount of loans and exposure of undrawn loan/issued guarantee commitments as at Jan. 1, 2025** | 36769077 | 876860 | 37645937 |
|  New loans, commitments and guarantees originated | 7576729 |  | 7576729 |
|  Repayments | (1487925) | (57232) | (1545157) |
|  Movement in net transaction costs, fees, and related income through EIR method | (135690) | 164 | (135526) |
|  Cancelled commitment | (552467) | (3066) | (555533) |
|  Foreign exchange movements | 1080201 |  | 1080201 |
|  Transfer to stage 1 | 437096 | (437096) |  |
|  Transfer to stage 2 |  |  |  |
|  **As at Dec. 31, 2025** | **43687021** | **379630** | **44066651** |
|  | **Stage 1** | **Stage 2** | **Total** |
|  **ECL allowance as at Jan. 1, 2025** | 28318 | 35860 | 64178 |
|  Additions | 1632 |  | 1632 |
|  Change in risk parameters <sup>(1)</sup> | (7651) | (4188) | (11839) |
|  Change from lifetime (stage 2) to 12- month (stage 1) ECL | 1219 | (22506) | (21287) |
|  Change from 12-month (stage 1) to lifetime (stage 2) ECL |  |  |  |
|  Reversal of ECL allowance | (412) | (308) | (720) |
|  **As at Dec. 31, 2025** | **23106** | **8858** | **31964** |

---

<sup>(1)</sup> The change in the loss allowance is due to change in the Probability of Default, Loss Given Default and Exposure at Default used to calculate the expected credit loss for the loans.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Credit quality analysis (Continued)***

**Nonsovereign-backed loans** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Stage 1** | **Stage 2** | **Total** |
|  **Gross carrying amount of loans and exposure of undrawn loan commitments as at Jan. 1, 2025** | 3034979 | 503597 | 3538576 |
|  New loans and commitments originated | 1485961 |  | 1485961 |
|  Repayments | (559023) | (333590) | (892613) |
|  Movement in net transaction costs, fees, and related income through EIR method | (4971) | (4015) | (8986) |
|  Derecognition |  |  |  |
|  Cancelled commitment | (54423) |  | (54423) |
|  Foreign exchange movements | 118318 | 90467 | 208785 |
|  Transfer to stage 1 |  |  |  |
|  Transfer to stage 2 | (576704) | 576704 |  |
|  Transfer to stage 3 |  |  |  |
|  **As at Dec. 31, 2025** | **3444137** | **833163** | **4277300** |
|  | **Stage 1** | **Stage 2** | **Total** |
|  **ECL allowance as at Jan. 1, 2025** | 16363 | 119271 | 135634 |
|  Additions | 21731 |  | 21731 |
|  Change in risk parameters <sup>(1)</sup> | (4685) | (3807) | (8492) |
|  Change from lifetime (stage 2) to 12- month (stage 1) ECL |  |  |  |
|  Change from 12-month (stage 1) to lifetime (stage 2) ECL | (22165) | 51542 | 29377 |
|  Reversal of ECL allowance | (579) | (86141) | (86720) |
|  **As at Dec. 31, 2025** | **10665** | **80865** | **91530** |
|  **Total gross carrying amount of loans and exposure of undrawn loan commitments as at Dec. 31, 2025** | **47131158** | **1212793** | **48343951** |
|  **Total ECL allowance as at Dec. 31, 2025** | **33771** | **89723** | **123494** |

---

<sup>(1)</sup> The change in the loss allowance is due to change in the Probability of Default, Loss Given Default and Exposure at Default used to calculate the expected credit loss for the loans. It also includes those changes resulting from methodology updates and PMA. For details please refer to Section D3 ECL measurement. 

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Credit quality analysis (Continued)***

**Sovereign-backed loans and issued guarantee commitments** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Stage 1** | **Stage 2** | **Total** |
|  **Gross carrying amount of loans and exposure of undrawn loan/issued guarantee commitments as at Jan. 1, 2024** | 31047342 | 1530986 | 32578328 |
|  New loans, commitments and guarantees originated | 6721414 |  | 6721414 |
|  Repayments | (1190845) | (49913) | (1240758) |
|  Movement in net transaction costs, fees, and related income through EIR method | (32970) | 135 | (32835) |
|  Cancelled commitment | (41002) |  | (41002) |
|  Foreign exchange movements | (339210) |  | (339210) |
|  Transfer to stage 1 | 604348 | (604348) |  |
|  Transfer to stage 2 |  |  |  |
|  **As at Dec. 31, 2024** | **36769077** | **876860** | **37645937** |
|  | **Stage 1** | **Stage 2** | **Total** |
|  **ECL allowance as at Jan. 1, 2024** | 32804 | 153923 | 186727 |
|  Additions | 3718 |  | 3718 |
|  Change in risk parameters <sup>(1)</sup> | (8755) | (103957) | (112712) |
|  Change from lifetime (stage 2) to 12-month (stage 1) ECL | 558 | (14106) | (13548) |
|  Change from 12-month (stage 1) to lifetime (stage 2) ECL |  |  |  |
|  Reversal of ECL allowance | (7) |  | (7) |
|  **As at Dec. 31, 2024** | **28318** | **35860** | **64178** |

---

<sup>(1)</sup> The change in the loss allowance is due to change in the Probability of Default, Loss Given Default and Exposure at Default used to calculate the expected credit loss for the loans. It also includes those changes resulting from methodology updates. For details, please refer to section D3 ECL measurement in the Bank's annual financial statements for the year ended Dec. 31, 2024. 

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Credit quality analysis (Continued)***

**Nonsovereign-backed loans** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Stage 1** | **Stage 2** | **Stage 3** | **Total** |
|  **Gross carrying amount of loans and exposure of undrawn loan commitments as at Jan. 1, 2024** | 2258213 | 496516 | 67255 | 2821984 |
|  New loans and commitments originated | 1156213 |  |  | 1156213 |
|  Repayments | (123757) | (30554) |  | (154311) |
|  Movement in net transaction costs, fees, and related income through EIR method | 316 | 436 | (170) | 582 |
|  Derecognition |  |  | (67085) | (67085) |
|  Cancelled commitment | (65681) | (45364) |  | (111045) |
|  Foreign exchange movements | (55766) | (51996) |  | (107762) |
|  Transfer to stage 1 |  |  |  |  |
|  Transfer to stage 2 | (134559) | 134559 |  |  |
|  **As at Dec. 31, 2024** | **3034979** | **503597** | **—** | **3538576** |
|  | **Stage 1** | **Stage 2** | **Stage 3** | **Total** |
|  **ECL allowance as at Jan. 1, 2024** | 7429 | 25180 | 62751 | 95360 |
|  Additions | 1683 |  |  | 1683 |
|  Change in risk parameters <sup>(1)</sup> | 8179 | 77055 |  | 85234 |
|  Change from lifetime (stage 2) to 12-month (stage 1) ECL |  |  |  |  |
|  Change from 12-month (stage 1) to lifetime (stage 2) ECL | (758) | 17514 |  | 16756 |
|  Reversal of ECL allowance | (170) | (478) | (62751) | (63399) |
|  **As at Dec. 31, 2024** | **16363** | **119271** | **—** | **135634** |
|  **Total gross carrying amount of loans and exposure of undrawn loan commitments as at Dec. 31, 2024** | **39804056** | **1380457** | **—** | **41184513** |
|  **Total ECL allowance as at Dec. 31, 2024** | **44681** | **155131** | **—** | **199812** |

---

<sup>(1)</sup> The change in the loss allowance is due to change in the Probability of Default, Loss Given Default and Exposure at Default used to calculate the expected credit loss for the loans. It also includes those changes resulting from methodology updates and PMA. For details, please refer to section D3 ECL measurement in the Bank's annual financial statements for the year ended Dec. 31, 2024. 

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Credit quality analysis (Continued)***

**Debt securities in investment operations portfolio** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Stage 1** | **Stage 2** | **Stage 3<sup>(1)</sup>** | **Total** |
|  **Debt securities as at Jan. 1, 2025** | 707197 |  | 14988 | 722185 |
|  New debt securities | 321955 |  | 252 | 322207 |
|  Accrual and amortization | 1792 |  | 238 | 2030 |
|  Foreign exchange movements | (9552) |  |  | (9552) |
|  Transfer to stage 1 |  |  |  |  |
|  Transfer to stage 2 |  |  |  |  |
|  Transfer to stage 3 |  |  |  |  |
|  Derecognition | (137251) |  | (10409) | (147660) |
|  **As at Dec. 31, 2025** | **884141** |  | **5069** | **889210** |
|  | **Stage 1** | **Stage 2** | **Stage 3** | **Total** |
|  **ECL allowance as at Jan. 1, 2025** | 2162 |  | 14010 | 16172 |
|  Additions | 1186 |  | 128 | 1314 |
|  Change in risk parameters | (113) |  | 20 | (93) |
|  Change from lifetime (stage 2) to 12-month (stage 1) ECL |  |  |  |  |
|  Change from 12-month (stage 1) to lifetime (stage 2) ECL |  |  |  |  |
|  Change from 12-month (stage 2) to lifetime (stage 3) ECL |  |  |  |  |
|  Reversal of ECL allowance | (184) |  | (9113) | (9297) |
|  **As at Dec. 31, 2025** | **3051** |  | **5045** | **8096** |

---

<sup>(1)</sup> The Bank held one debt security from one issuer that were assessed as "credit impaired" and downgraded to Stage 3. As at Dec. 31, 2025, USD5.05 million of ECL allowance has been provided for the debt security.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Credit quality analysis (Continued)***

**Debt securities in treasury investment portfolio** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Stage 1** | **Stage 2** | **Stage 3** | **Total** |
|  **Debt securities as at Jan. 1, 2025** | 11045284 |  |  | 11045284 |
|  New debt securities | 2214427 |  |  | 2214427 |
|  Accrual and amortization | 42420 |  |  | 42420 |
|  Foreign exchange movements |  |  |  |  |
|  Transfer to stage 1 |  |  |  |  |
|  Transfer to stage 2 |  |  |  |  |
|  Transfer to stage 3 |  |  |  |  |
|  Derecognition | (2810035) |  |  | (2810035) |
|  **As at Dec. 31, 2025** | **10492096** |  |  | **10492096** |
|  | **Stage 1** | **Stage 2** | **Stage 3** | **Total** |
|  **ECL allowance as at Jan. 1, 2025** | 2808 |  |  | 2808 |
|  Additions | 225 |  |  | 225 |
|  Change in risk parameters | (1354) |  |  | (1354) |
|  Change from lifetime (stage 2) to 12-month (stage 1) ECL |  |  |  |  |
|  Change from 12-month (stage 1) to lifetime (stage 2) ECL |  |  |  |  |
|  Change from 12-month (stage 2) to lifetime (stage 3) ECL |  |  |  |  |
|  Reversal of ECL allowance | (522) |  |  | (522) |
|  **As at Dec. 31, 2025** | **1157** |  |  | **1157** |

---

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Credit quality analysis (Continued)***

**Debt securities in investment operations portfolio** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Stage 1** | **Stage 2** | **Stage 3** | **Total** |
|  **Debt securities as at Jan. 1, 2024** | 697093 |  | 14490 | 711583 |
|  New debt securities | 119859 |  |  | 119859 |
|  Accrual and amortization | 5544 |  | 498 | 6042 |
|  Foreign exchange movements | (2307) |  |  | (2307) |
|  Transfer to stage 1 |  |  |  |  |
|  Transfer to stage 2 |  |  |  |  |
|  Transfer to stage 3 |  |  |  |  |
|  Derecognition | (112992) |  |  | (112992) |
|  **As at Dec. 31, 2024** | **707197** |  | **14988** | **722185** |
|  | **Stage 1** | **Stage 2** | **Stage 3** | **Total** |
|  **ECL allowance as at Jan. 1, 2024** | 711 |  | 13759 | 14470 |
|  Additions | 716 |  |  | 716 |
|  Change in risk parameters | 775 |  | 251 | 1026 |
|  Change from lifetime (stage 2) to 12-month (stage 1) ECL |  |  |  |  |
|  Change from 12-month (stage 1) to lifetime (stage 2) ECL |  |  |  |  |
|  Change from 12-month (stage 1) to lifetime (stage 3) ECL |  |  |  |  |
|  Reversal of ECL allowance | (40) |  |  | (40) |
|  **As at Dec. 31, 2024** | **2162** |  | **14010** | **16172** |

---

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Credit quality analysis (Continued)***

**Debt securities in treasury investment portfolio** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Stage 1** | **Stage 2** | **Stage 3** | **Total** |
|  **Debt securities as at Jan. 1, 2024** | 7569765 |  |  | 7569765 |
|  New debt securities | 6601469 |  |  | 6601469 |
|  Accrual and amortization | 60382 |  |  | 60382 |
|  Foreign exchange movements |  |  |  |  |
|  Transfer to stage 1 |  |  |  |  |
|  Transfer to stage 2 |  |  |  |  |
|  Transfer to stage 3 |  |  |  |  |
|  Derecognition | (3186332) |  |  | (3186332) |
|  **As at Dec. 31, 2024** | **11045284** |  |  | **11045284** |
|  | **Stage 1** | **Stage 2** | **Stage 3** | **Total** |
|  **ECL allowance as at Jan. 1, 2024** | 513 |  |  | 513 |
|  Additions | 1103 |  |  | 1103 |
|  Change in risk parameters | 1320 |  |  | 1320 |
|  Change from lifetime (stage 2) to 12-month (stage 1) ECL |  |  |  |  |
|  Change from 12-month (stage 1) to lifetime (stage 2) ECL |  |  |  |  |
|  Change from 12-month (stage 1) to lifetime (stage 3) ECL |  |  |  |  |
|  Reversal of ECL allowance | (128) |  |  | (128) |
|  **As at Dec. 31, 2024** | **2808** |  |  | **2808** |

---

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Credit quality analysis (Continued)***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(iv)***  ***Non-performing assets (NPA)*** 

A financial asset is classified as non-performing when the obligor is assessed to be in "imminent default" or has already "defaulted" and is therefore rated at internal rating grade 12 (equivalent to CC or below). The Bank defines "imminent default" as a situation where there is clear evidence that the obligor is unlikely to meet its credit obligations in full and on time, without the Bank having to take actions such as enforcing collateral. The Bank considers "default" occurs when an obligor meets one or more of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Failure to make a payment—180 days past due for sovereign-backed financing and 90 days past due for
nonsovereign-backed financing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Breach of specific covenants that result in an event of default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Default under a guarantee or other support agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Failure to pay a final judgment or court order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Bankruptcy, liquidation or the appointment of a receiver or any similar official.

The above definition of NPA is aligned with the Bank's internal risk management policy and industry practice, and consistent with the Bank's criteria of classifying a financial asset as "credit-impaired asset" for accounting purpose under IFRS 9 (refer to Note D3 ECL measurement (iii)).

As at Dec. 31, 2025, the Bank has zero sovereign NPA and USD5 million (Dec. 31, 2024: USD16 million) nonsovereign NPA for in outstanding notional amount. This represents NPA ratio of 0.1% (Dec. 31, 2024: 0.4%) for nonsovereign portfolio and 0.02% (Dec. 31, 2024: 0.05%) for the entire investment operation portfolio.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***ECL measurement***

The Bank adopts a "three-stage" model for ECL measurement for applicable financial instruments. A "three-stage" model for impairment is based on changes in credit quality since initial recognition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If a financial instrument that has not experienced a significant increase in credit risk ("SICR") in its
credit quality since origination, it is classified as "Stage 1" with 12-month ECL recognized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If a financial instrument has experienced a SICR since origination, it is moved to "Stage 2" with lifetime
ECL recognized but is not yet deemed to be credit impaired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If a financial instrument is deemed as credit impaired, the financial instrument is moved to "Stage 3" with
the impairment recognized.

The Bank's main credit risk exposure related to ECL measurement is from loan investments, loan commitments, debt securities and guarantees.

The following reflects the Bank's ECL measurement focusing on loan investments, loan commitments and debt securities held at amortized cost and guarantees. Given the nature of the Bank's business (large infrastructure loans), all the instruments are assessed on an individual basis. Investments made in debt securities are treated in the same manner since each individually acquired debt security has different credit risk characteristics that may be driven by different factors as well.

The key judgments and assumptions adopted by the Bank are discussed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(i) SICR***

The Bank considers a financial instrument to have experienced SICR when one or more of the following quantitative, qualitative or backstop criteria have been met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Quantitative criteria

Deterioration in credit rating is used as the quantitative criteria of SICR:

- Internal rating 8 (mapped to S&P rating B+) and above, rating downgrade by 3 notches determined by comparing the current rating (incorporating forward-looking information) with rating at origination.

- Internal rating 9 (mapped to S&P rating B) and below, rating downgrade by 2 notches determined by comparing the current rating (incorporating forward-looking information) with rating at origination.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***ECL measurement (Continued)***

All financial instruments are assigned with an initial rating since origination based on the Bank's internal rating scale, which are updated periodically to determine if there has been a SICR at each reporting date (refer to Note D3 credit risk management for the Bank's internal rating processes based on the types of financings).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Qualitative criteria

In addition to the quantitative criteria, the following qualitative criteria contribute to a determination whether a financial asset should migrate to Stage 2:

- Adverse changes in business, financial or economic conditions;

- Expected breach of contract that may lead to covenant waivers or amendments;

- Transfer to watch list/enhanced monitoring; and

- Changes in payment behavior.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Backstop

- Contractual payments with more than 30 days past due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Post Model Adjustment

Post Model Adjustment ("PMA"), i.e., overlay, is applied where the ECL model is unable to adequately reflect all pertinent information relevant to measuring the ECL of a financial instrument through the model parameters and assumptions. Any PMA is assessed on a case-by-case basis and grounded in a robust rationale, which will be reviewed and approved by the Risk Committee. In the case of persistent PMA over a significant portion of the Bank's portfolio, the ECL methodology and model shall be recalibrated to incorporate any additional factors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(ii)***  ***Measurement of the 12-month and lifetime ECL*** 

ECL is calculated by the following general formula:

![LOGO](g108041dsp87a.jpg)

1) Point-in-time Probability of Default ("PIT PD") reflects the default rates arising from the economic and credit cycle. The Bank utilizes Moody's Analytics Expected Default Frequency ("EDF") model to produce unconditional PIT PD term structures for each financial instrument, which are country- and industry-specific. In addition, the Bank applies three forward-looking macroeconomic scenarios (baseline, upside, downside) to convert unconditional PIT PD to conditional PIT PD over the first three-year time horizon with mean reversion from the fourth year and onwards. 

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***ECL measurement (Continued)***

2) The Bank's Loss Given Default ("LGD") framework ranges from 5% to 40% in the case of sovereign-backed loans and guarantees and from 25% to 85% (as assigned on a case-by-case basis) for nonsovereign-backed loans and debt securities, based on a methodology anchored on peer analysis and benchmark studies from commercial lenders and rating agencies. 

3) Exposure at Default ("EAD") is defined as gross carrying amount at each point in time over the life of the financial instrument, taking into account actual and future expected contractual principal and interest cashflows. 

4) The three macroeconomic scenarios (baseline, upside, downside) are assigned with the weights (![LOGO](g108041sp75.jpg)) of 40%, 30% and 30%, respectively. 

5) Discount factor ("DF") is calculated by effective interest rate of each financial instrument.

6) With the above general formula and parameters, 12-month ECL is calculated based on one-year time horizon and lifetime ECL based on the contractual remaining life of the financial instrument.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***ECL measurement (Continued)***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(iii)***  ***Credit-impaired assets*** 

The Bank considers a financial instrument measured at amortized cost to become credit-impaired and thus transfers it to Stage 3, when one or more of the following qualitative or backstop criteria are met. Accordingly, moving to Stage 3 as credit-impaired asset corresponds to NPA classification (refer to Note D3 credit quality analysis (iii)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Qualitative criteria

- significant financial difficulty of the obligor;

- a breach of contract such as a default or past due event;

- the lender(s) of the obligor, for economic or contractual reasons relating to the obligor's financial difficulty, of a concession(s) that the lender(s) would not otherwise consider; or

- probable entry by the obligor in bankruptcy or other financial reorganization; or

- the purchase or origination of a financial asset at a deep discount that reflects the incurred credit losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Backstop

Since it may not be possible to identify a single discrete event, the combined effect of several events may have caused financial assets to become credit-impaired. Therefore, the Bank applies the following backstop criteria to determine whether a financial instrument is considered credit-impaired: 180 days past due for sovereign-backed financing and 90 days past due for nonsovereign-backed financing.

The estimated impairment loss for credit-impaired assets is the difference between the impaired asset's gross carrying amount and, if available, market quotes or the present value of estimated future cash flows discounted at a rate linked to the asset's original effective interest rate. In cases without market reference, cash flows are estimated for a set of likely scenarios with corresponding weights that consider information that is available to the Bank without undue cost or effort.

In the case of paid-in capital receivables, consideration of whether default status is applicable is evaluated by reviewing the cause of non-payment as well as whether the member has any sovereign-backed financing classified as Stage 2 and Stage 3.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***ECL measurement (Continued)***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(iv)***  ***Forward-looking information incorporated in ECL*** 

The Bank incorporates forward-looking information to ECL calculation by developing three macroeconomic scenarios (baseline, upside, and downside) at country level over the next three years (deemed to be a reasonable and supportable forecast period). The baseline scenario represents the most likely economic pathway (40% weight) based on available forecasts of the selected macroeconomic variables (such as GDP growth, unemployment rate and oil price). The upside/downside scenarios represent less likely economic pathways (30% weight) and are calibrated as "numbers of standard deviation" away from the baseline scenario. In addition, climate risk is quantified within the downside scenario for countries particularly vulnerable to climate change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(v)***  ***Sensitivity analysis*** 

The output of the Bank's ECL model is most sensitive to credit rating deterioration, in particular for obligors in the Medium and High Risk buckets and with a relatively large exposure. The Bank assesses obligors in the portfolio with negative rating outlook and performs stressed ECL calculations assuming should they be downgraded by additional one notch. The aggregate impact of the two most severe downgrades would result in an ECL increase of USD7.2 million (2024: USD12.2 million), resulting in total ECL of USD139.9 million (2024: USD230.9 million).

Another sensitivity test is to consider a skewed probability of the downside scenarios (40% probability for downside scenario, with baseline and upside scenarios each at 30% probability). In this case, ECL would increase by USD2.3 million (2024: USD2.4 million), resulting in total ECL of USD135.0 million (2024: USD221.2 million).

The first sensitivity captures the idiosyncratic risk of the two obligors with the largest impact, while the second represents an increase in overall portfolio risk as a result of a more challenging macroeconomic environment.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***ECL measurement (Continued)***

Additional sensitivity tests on the key ECL assumptions for loan investments, debt securities and issued guarantee commitments (excluding Stage 3) have the following results:

---

| | | |
|:---|:---|:---|
|  | **Recalculated<br>ECL** | **Change<br>in ECL** |
|  **Portfolio ECL (Stage 1 and Stage 2)** | 127702 |  |
|  **Staging** |  |  |
|  All loans/bonds at Stage 1 | 50960 | (76742) |
|  All loans/bonds at Stage 2 | 358972 | 231270 |
|  **Scenarios** |  |  |
|  Narrowing upside and downside scenarios by 0.5 standard deviation | 127231 | (471) |
|  Widening upside and downside scenarios by 0.5 standard deviation | 130115 | 2413 |
|  **LGD** |  |  |
|  Increase LGD by 10% | 175450 | 47748 |

---

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***ECL measurement (Continued)***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(vi)***  ***Write-off policy*** 

The Bank reduces the gross carrying amount of a financial asset when the Bank has no reasonable expectations of recovering the contractual cash flows on a financial asset in its entirety or a portion thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***(vii)***  ***Other risks*** 

There are other risks affecting the Bank's operations and can have credit, market, liquidity and operational risk implication. These risks are climate and geopolitical risks.

**Climate risk** is evaluated with consideration of both physical and transition risks. Physical risk is the risk that asset values may decline or operations may be disrupted as a result of physical impact from changes in the climate, while transition risk is the risk that asset values may decline because of changes in climate policies or changes in the underlying economy due to decarbonization.

The Bank incorporates Environment, Social and Governance ("ESG") factors into its internal assessment of the creditworthiness of the obligor; and further, the macroeconomic scenarios for ECL assessment explicitly capture additional downside shocks for countries that exhibit vulnerabilities to climate change.

AIIB has taken steps to measure climate risks within its inaugural 2024 AIIB Sustainability Report,<sup>2</sup> which was released in August 2025. It is part of the Bank's commitment to annual sustainability-related financial reporting on its operations, and provides the impact of climate-related risks on the Bank's financial performance.

**Geopolitical risk** is closely monitored and assessed through the Bank's risk management processes such as rating reviews of the related credit exposures and Economic Capital allocation to market risk arising from volatilities induced by geopolitical events. In 2022, the war in Ukraine led to concerns that economic spillover from commodity price shocks, financial market volatility and other factors may adversely impact the Bank's operations. As at Dec. 31, 2025, the Bank has no exposures to Ukraine, Belarus or Russia.

The Bank considers the above risks in the annual stress test review to assess the Bank's capital adequacy and formulate the Bank's Risk Appetite Statement, consistent with its target to maintain its AAA credit rating. The stress scenarios include global stagflation, geopolitical risk and climate change, which are analyzed to determine their impact on portfolio credit quality.

<sup>2</sup> <u>2024 AIIB Sustainability Report</u>

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D3** | **Credit and other investment risks (Continued)**  |

---

***Change of accounting estimates in LGD methodology***

As part of its credit risk monitoring and model governance processes, the Bank periodically evaluates the performance of the ECL model and reviews the appropriateness of critical modelling methodology and risk parameter inputs.

In the third quarter, the Bank conducted a comprehensive review on Loss Given Defaults ("LGD") methodology for nonsovereign investments applied to ECL calculation. The Bank currently adopts a nonsovereign LGD framework across a range of asset classes, including project finance, corporates, and financial institutions. Following a comprehensive review in 2025, the Bank recalibrated the nonsovereign LGD to ensure alignment with external standards by drawing on accumulated experience, rating agency data, and benchmarking against MDB practices. The ECL impact attributed to this methodological modification was about a decrease of USD8 million as of Sep. 30, 2025.

***Change of accounting estimates for Post Model Adjustment (PMA)***

In assessing the appropriateness of the Bank's provisions for ECL, the Bank considers all available information within its credit rating, LGD assessment and "forward-looking" variables for each investment when calculating ECL under the Bank's model. Where necessary, the Bank includes PMA to reflect information beyond forecastable variables, including geopolitical and economic factors, which are assessed at individual project level. As at Dec. 31, 2025, the PMAs resulted in an increase of provision amounting to USD10.7 million (Dec. 31, 2024: USD81.0 million).

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D4** | **Market risk**  |

---

The Bank is exposed to currency and interest rate risk in its investment, lending and other activities. Currency risk is the potential for loss that arises when assets or liabilities are denominated in a non-USD currency and the price of that currency versus US dollars fluctuates. Interest rate risk arises when the value of assets or liabilities changes with the fluctuation of interest rates.

The objectives of AIIB's asset liability management (ALM) approach are to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) provide for the Bank's liquidity needs at all times, while maintaining the necessary resources to satisfy the requirements of credit rating agencies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) limit potential market risk losses by keeping the Bank's exposures under various allocated market risk limits, while prudently managing interest income to ensure income stability.

***Currency risk***

AIIB's functional currency is the US Dollar (USD). The Bank offers loans, invests and borrows in certain non-USD currencies (with the most significant individual currencies being EUR, GBP, CNY)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Bank may offer loans and other development-related assets denominated in currencies other than USD whenever it has
the means to adequately operate in those currencies and manage risks unique to the relevant products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To minimize currency risk, the Bank shall match its assets in any one currency with borrowing obligations in the same
currency (after use of derivatives). In cases where non-USD funding through bond issuances or swaps may not be feasible, the assets could also be funded by equity and remain unhedged, within established limits
to control such unhedged exposures.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D4** | **Market risk (Continued)**  |

---

***Currency risk (Continued)***

The Bank has largely hedged its net open asset/liability position in all currencies to which it has significant exposure. Specifically, in the significant currencies to which it has exposure (including EUR, GBP and CNY), the Bank has entered into foreign currency derivatives with notionals corresponding to the net open asset/liability position. A currency table for the main financial assets and financial liabilities is set out below:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **As at Dec. 31, 2025** | **EUR** | **GBP** | **CNY** | **Other non-**<br> **USD<br>currencies** | **Subtotal of<br>non-USD<br>currencies** | **USD** | **Total** |
|  | In thousands of USD equivalent | In thousands of USD equivalent | In thousands of USD equivalent | In thousands of USD equivalent | In thousands of USD equivalent | In thousands of USD equivalent | In thousands of USD equivalent |
|  ***Financial assets and financial liabilities*** |  |  |  |  |  |  |  |
|  Cash and cash equivalents<sup>1)</sup> | 16737 | 38 | 4162 | 176296 | 197233 | 3097776 | 3295009 |
|  Term deposits<sup>1)</sup> |  |  |  | 506341 | 506341 | 2632020 | 3138361 |
|  Investments at fair value through profit or loss<sup>2) 3)</sup> | 703793 | 203253 | 224291 | 1335003 | 2466340 | 11199148 | 13665488 |
|  Loan investments, at amortized cost<sup>1)</sup> | 5584724 |  | 1008774 | 879475 | 7472973 | 22275387 | 29748360 |
|  Debt securities, at amortized cost<sup>1)</sup> |  |  |  | 234597 | 234597 | 11071488 | 11306085 |
|  Paid-in capital receivables |  |  |  |  |  | 219625 | 219625 |
|  Derivative assets<sup>2)</sup> | 17496 |  | 25798 |  | 43294 | 1269380 | 1312674 |
|  Other assets |  |  | 3003 | 185 | 3188 | 652494 | 655682 |
|  **Gross financial assets** | **6322750** | **203291** | **1266028** | **3131897** | **10923966** | **52417318** | **63341284** |
|  Borrowings <sup>1) 2)</sup>  | (4389314) | (3752804) | (3027208) | (4720711) | (15890037) | (23179404) | (39069441) |
|  Derivative liabilities <sup>2)</sup> |  |  | (1496) |  | (1496) | (840426) | (841922) |
|  Other liabilities | (181) | (60) | (1303) | (82) | (1626) | (1168589) | (1170215) |
|  **Gross financial liabilities** | **(4389495)** | **(3752864)** | **(3030007)** | **(4720793)** | **(15893159)** | **(25188419)** | **(41081578)** |
|  **Net open asset /(liability) position excluding investment in equity participation <sup>3)</sup>**  | **1933255** | **(3549573)** | **(1763979)** | **(1588896)** | **(4969193)** | **27228899** | **22259706** |
|  **Currency derivative (notional amount)** | **(2284441)** | **3491901** | **1698355** | **1386670** | **4292485** | **(4349025)** | **(56540)** |

---

*<sup>1)</sup>* *The net foreign exchange gain or loss reflects the change in value, due to movements in currency exchange rates over the reporting period, only of those financial instruments which are measured at amortized cost. The amounts displayed in the currency table for loan investments and debt securities represent the gross carrying amounts. As at Dec. 31, 2025, non-USD loans with gross carrying amount of USD equivalent USD6,884.34 million are hedged by swaps with notional amount of USD7,700.48 million.* 

*<sup>2)</sup>* *For those financial instruments measured at fair value through profit or loss, the change in value due to movements in currency exchange rates is reported as part of their overall change in fair value under the heading "net gain on financial instruments measured at fair value and foreign exchange" (Note C3).* 

*<sup>3)</sup>* *The net open asset (liability) position excludes investments with equity participation.* 

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D4** | **Market risk (Continued)**  |

---

***Currency risk (Continued)***

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **As at Dec. 31, 2024** | **EUR** | **GBP** | **CNY** | **Other non-**<br> **USD**<br> **currencies** | **Subtotal of**<br> **non-USD**<br> **currencies** | **USD** | **Total** |
|  | In thousands of USD equivalent | In thousands of USD equivalent | In thousands of USD equivalent | In thousands of USD equivalent | In thousands of USD equivalent | In thousands of USD equivalent | In thousands of USD equivalent |
|  ***Financial assets and financial liabilities*** |  |  |  |  |  |  |  |
|  Cash and cash equivalents<sup>1)</sup> | 1723 | 36 | 4129 | 765 | 6653 | 1915886 | 1922539 |
|  Term deposits<sup>1)</sup> |  |  |  |  |  | 462012 | 462012 |
|  Investments at fair value through profit or loss<sup>2)</sup> <sup>3)</sup> | 589744 | 332797 | 674056 | 1557655 | 3154252 | 10129229 | 13283481 |
|  Loan investments, at amortized cost<sup>1)</sup> | 4413888 |  | 646404 | 1098489 | 6158781 | 20676561 | 26835342 |
|  Debt securities, at amortized cost<sup>1)</sup> |  |  |  | 87980 | 87980 | 11679489 | 11767469 |
|  Paid-in capital receivables |  |  |  |  |  | 234336 | 234336 |
|  Derivative assets<sup>2)</sup> | 5014 |  | 35305 |  | 40319 | 791742 | 832061 |
|  Other assets |  |  | 2828 | 124 | 2952 | 725679 | 728631 |
|  **Gross financial assets** | **5010369** | **332833** | **1362722** | **2745013** | **9450937** | **46614934** | **56065871** |
|  Borrowings<sup>1) 2)</sup> | (2875429) | (4081553) | (2696075) | (3631458) | (13284515) | (19669284) | (32953799) |
|  Derivative liabilities<sup>2)</sup> |  |  | (1152) |  | (1152) | (1174433) | (1175585) |
|  Other liabilities | (1629) | (213) | (1331) | (544) | (3717) | (525137) | (528854) |
|  **Gross financial liabilities** | **(2877058)** | **(4081766)** | **(2698558)** | **(3632002)** | **(13289384)** | **(21368854)** | **(34658238)** |
|  **Net open asset /(liability) position excluding investment in equity participation<sup>3)</sup>** | **2133311** | **(3748933)** | **(1335836)** | **(886989)** | **(3838447)** | **25246080** | **21407633** |
|  **Currency derivative (notional amount)** | **(2332955)** | **3814100** | **1415472** | **899561** | **3796178** | **(3903121)** | **(106943)** |

---

The Bank is subject to foreign exchange risks as it invests in equity participations with foreign exchange exposures to currencies other than USD. Fluctuations in exchange rates between these non-USD currencies and USD can have a positive or negative impact on the fair value of these investments.

Despite the presence of foreign currency risks, which are considered alongside equity price risk, the Bank takes a strategic long-term investment perspective and accepts short-term volatilities in the fair value of equity investments attributable to foreign currency risk. The Bank does not employ any currency risk mitigation strategies for these types of investments.

The Bank had exposure through its non-USD investments in single and multicounty investments with equity participation measured at fair value through profit and loss. Further information regarding the significant unobservable inputs to the determination of fair value of the equity investments is mainly provided in Note E.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D4** | **Market risk (Continued)**  |

---

***Interest rate risk***

The Bank takes on exposure to the effects of fluctuations in the prevailing levels of market interest rates on its financial position and cash flows. Interest margins may increase as a result of such changes but may reduce or create losses in the event that unexpected movements arise.

Currently, the vast majority of all loans of the Bank are subject to a floating base rate (mainly SOFR for USD, six-month EURIBOR for EUR and three-month SHIBOR for CNY). The Bank uses interest rate swaps and cross currency swaps to effectively transform the interest rate or currency characteristics of the debt issuance to match those of the loans. The main exposure to interest rate risk arises from the treasury investment portfolio. Various quantitative methods are employed to monitor and manage such risks.

The Bank uses duration and value-at-risk ("VaR") to measure interest rate risk on the treasury investment portfolio. Duration measures the sensitivity of the portfolio's value to a parallel change in interest rate. VaR provides an estimate of the portfolio value at a certain confidence level within a defined timeframe. The weighted duration of the Bank's treasury investment portfolio and investment operations was extended in 2024 and remained stable in 2025, well within permissible limits.

Interest rates have decreased over the course of 2025. The duration of the treasury investment portfolio has been managed at the same levels as at end of 2024, so that the higher rate levels remain locked in on the equity-funded portion of the portfolio. This contributed to stabilization of income in 2025, as there is less sensitivity of income of the treasury investment portfolio to short-term rate movements. Conversely, locking in the longer duration does lead to greater sensitivity of the economic value of investments to changes in the level of rates, with higher rates reducing the economic value, and lower rates increasing the value.

Interest rate risk also arises from other variables, including differences in reset frequency between the Bank's assets and liabilities. The Bank also uses cross currency swaps to modify the currency characteristics of the debt issuances. While this strategy eliminates foreign exchange risk, it may cause the Bank to be exposed to unfavorable movements in the cross-currency basis.

The Bank's interest rate risk may also comprise of non-linear risks arising from optionality such as prepayments on loans and callable features on debt issuances. The Bank manages the market exposures from optionality as per the Bank's ALM Policy either by hedging on a back-to-back basis or transferring the cost of the market risk to the counterparty.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D4** | **Market risk (Continued)**  |

---

***Sensitivity analysis***

The Bank enters into various derivative instruments to manage interest rate risks. On a fair value basis, if interest rates increase by one basis point, treasury investment portfolio would experience an unrealized mark-to-market loss of USD1.2 million as at Dec. 31, 2025 (Dec. 31, 2024: USD1.1 million).

The impact of changes in interest income on the Bank's profit or loss and equity is primarily caused by movements in interest rates. The effect on assets and liabilities that are held at fair value are expected to offset one another.

The following table illustrates the potential impact of a parallel upward or downward shock in relevant interest rate curves on the Bank's interest income from the floating rate financial instruments (mainly loan investments) which are measured at amortized cost, based on the carrying value at the end of the reporting period. This analysis assumes that interest rates of all maturities move by the same amount.

The sensitivity analysis on interest income is based on reasonably possible changes in interest rates with the assumption that the structure of financial assets held at the period end remains unchanged. It does not take into account actions that would be taken by the Bank to mitigate the impact of the interest rate risk.

---

| | |
|:---|:---|
|  | Interest income sensitivity (in million) |
|  | For the year ended <br> Dec. 31, 2025  |
|  +100 basis points | 286 |
|  -100 basis points | (286) |
|  | Interest income sensitivity (in million) |
|  | For the year ended <br> Dec. 31, 2024  |
|  +100 basis points | 246 |
|  -100 basis points | (246) |

---

***Refinance risk***

The refinancing risk for fixed-spread loans relates to the potential impact of any future deterioration in the Bank's funding cost. The Bank does not match the maturity of its funding with that of its fixed-spread loans as this would result in significantly higher financing costs for all loans. Instead, the Bank targets a shorter average funding maturity and manages the refinancing risk through the fixed-spread loan pricing, i.e., pricing to borrowers is made inclusive of the funding premium to cover refinancing risks as required by the Bank's ALM Policy.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D5** | **Liquidity risk**  |

---

Liquidity risk is the risk that the Bank will not be able to meet efficiently both expected and unexpected current and future cash flow and collateral needs without affecting either daily operations or the financial condition of the Bank.

The Bank always ensures maintenance of strong liquidity. There is a three-tiered approach to achieve this goal. Firstly, the Bank maintains a stock of high-quality liquid assets to meet 30-day stress scenario (i.e., Liquidity Coverage Ratio) to ensure short-term liquidity. Second, a 12-month stressed liquid asset ratio is maintained to ensure the Bank has sufficient liquidity to withstand medium term stressed conditions. Finally, the Bank maintains liquidity at a level at least equal to 40% of the projected net cash flow requirements for the next three years. Outflows from committed but undisbursed loans and, under stress conditions, outflows from issued financial guarantees are included in the Bank's liquidity assessment.

Below sets out the remaining contractual maturities for the undiscounted cash flow of main financial liabilities.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **As at Dec.**<br> **31, 2025** | **Less**<br> **than 1**<br> **month** | **1-3**<br> **months** | **3-12**<br> **months** | **1-5**<br> **years** | **Over 5**<br> **years** | **Total** |
|  Financial liabilities |  |  |  |  |  |  |
|  Borrowings | (3863752) | (383968) | (6518265) | (24093295) | (9483828) | (44343108) |
|  Other Liabilities <sup>1)</sup> | (1028026) |  |  |  |  | (1028026) |
| **As at Dec.**<br> **31, 2024** | <br> **Less**<br> **than 1**<br> **month** | **1-3**<br> **months** | **3-12**<br> **months** | **1-5**<br> **years** | **Over 5**<br> **years** | **Total** |
|  Financial liabilities |  |  |  |  |  |  |
|  Borrowings | (344383) | (333800) | (6945209) | (26050576) | (3401068) | (37075036) |
|  Other Liabilities <sup>1)</sup> | (433361) |  |  |  |  | (433361) |

---

<sup>1)</sup> Other liabilities include collateral held in relation to derivatives that becomes repayable dependent on daily movements in interest rates, payable and advance receipt for unsettled trades, and bank overdrafts.

Refer to Note C13 for maturity analysis of undiscounted cash flows deriving from derivatives.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

**D** **Financial Risk Management** 

---

| | |
|:---|:---|
| **D6** | **Compliance and operational risk**  |

---

The Bank proactively manages compliance and operational risks through a robust and structured approach. It maintains vigilant oversight of compliance risks, including Anti-Money Laundering, Countering the Financing of Terrorism, combating proliferation financing in accordance with Financial Action Task Force recommendations and relevant United Nations Security Council Resolutions, economic and trade sanctions, and tax transparency requirements. The Bank's operational risk framework is designed to systematically identify, assess, and mitigate operational risks, ensuring consistent standards and techniques are applied across the institution.

---

| | |
|:---|:---|
| **D7** | **Capital management**  |

---

To ensure that the Bank maintains its AAA credit rating on a standalone basis at all times, two limits are in place. The first, as required by Article 12.1 of the Bank's AOA, the Bank's total unimpaired subscribed capital, reserves and retained earnings must always be greater than the total exposure on commitment basis from its investment operations (i.e., loans, equity investments, guarantees and other types of financing). This limit may be increased up to 250% of the Bank's unimpaired subscribed capital, reserves and retained earnings with the approval of the Board of Governors. The second, using an economic capital framework, the Bank's available capital (as capital supply) must be greater than the required economic capital (as capital demand) given the composition of its investment and treasury operations (as well as its operational risks) for both the actual and the three-year projected balance sheet, and under both the base-case and stressed scenario bases.

The Bank defined available capital as the sum of paid-in capital plus reserves, accumulated retained earnings, and a prudent portion of callable capital, less prudent valuation adjustments and unrealized own-credit gains or losses. As of Dec. 31, 2025, the ratio of the required economic capital to available capital under stressed scenario was 44.6% (Dec. 31, 2024: 38.6%).

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

---

| | |
|:---|:---|
| **E** | **Fair Value Disclosures**  |

---

The majority of the Bank's assets and liabilities in the Statement of Financial Position are financial assets and financial liabilities. Fair value measurement of nonfinancial assets and nonfinancial liabilities does not have a material impact on the Bank's financial position and operations, taken as a whole.

The Bank does not have any financial assets or financial liabilities subject to nonrecurring fair value measurements for the year ended Dec. 31, 2025 (for the year ended Dec. 31, 2024: none).

The fair value of the Bank's financial assets and financial liabilities are determined as follows:

- If traded in active markets, fair values of financial assets and financial liabilities with standard terms and conditions are determined with reference to quoted market bid prices and ask prices, respectively.

If not traded in active markets, fair values of financial assets and financial liabilities are determined in accordance with generally accepted pricing models or discounted cash flow analysis using prices from observable current market transactions for similar instruments or using unobservable inputs relevant to the Bank's assessment. <br>

**Fair value hierarchy** 

The Bank classifies financial assets and financial liabilities into the following three levels based on the extent to which inputs to valuation techniques used to measure fair value of the financial assets and financial liabilities are observable:

---

| | |
|:---|:---|
|  Level 1: | Fair value measurements are those derived from quoted prices (unadjusted) in an active market for identical assets or liabilities; |
|  Level 2: | Fair value measurements are those derived from inputs other than quoted included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices); and |
|  Level 3: | Fair value measurements are based on models, and unobservable inputs are significant to the entire measurement. |

---

The Bank assesses the fair value hierarchy at security level. The Bank recognizes transfers in and transfers out of levels at the end of the reporting period during which the change has occurred.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

---

| | |
|:---|:---|
| **E** | **Fair Value Disclosures**  |

---

**Financial assets and financial liabilities not measured at fair value on the Statement of Financial Position**

The table below summarizes the carrying amounts and fair values of those financial instruments not measured in the Statement of Financial Position at their fair value:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; **Dec. 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp; **Dec. 31, 2025** | &nbsp;&nbsp;&nbsp;&nbsp; **Dec. 31, 2024** | &nbsp;&nbsp;&nbsp;&nbsp; **Dec. 31, 2024** |
|  | **Carrying** | | **Carrying** | |
| | **amount** | **Fair value** | **amount** | **Fair value** |
|  ***Financial assets*** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Loan investments, at amortized cost | 29626580 | 30496466 | 26637065 | 27310079 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Debt securities, at amortized cost | 11297092 | 11402179 | 11748489 | 11647162 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Paid-in capital receivables | 219625 | 219151 | 234336 | 233504 |
|  ***Financial liabilities*** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - Borrowings | 2477268 | 2481420 | 1355939 | 1360395 |

---

As at Dec. 31, 2025, other than those disclosed above, the Bank's balances of financial instruments are not measured at fair value but with short-term maturity approximate their fair values.

Fair value of loan investments and paid-in capital receivables measured at amortized cost has been calculated using Level 3 inputs by discounting the cash flows at a current interest rate applicable to each loan and paid-in capital receivable.

The significant input used in the fair value of loan are risk-free rate, credit default swap spreads, expected recovery rate and foreign exchange rates. Management makes certain assumptions about the unobservable inputs to the model. These are regularly assessed for reasonableness and impact on the fair value of loans. An increase in the level of forecast cash flows in subsequent periods would lead to an increase in the fair value and an increase in the discount rate used to discount to forecast cash flow would lead to a decrease in the fair value of loans.

Fair value of debt securities held at amortized cost are generally based upon quoted market prices, if available. If the market prices are not readily available, fair values are estimated using either values obtained from independent parties offering pricing services or adjusted quoted market prices of comparable investments or using the discounted cash flow methodology.

Fair value of borrowings held at amortized cost are generally based upon quoted market prices, if available. If the market prices are not readily available, fair values are determined using discounted cash flow models.

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

---

| | |
|:---|:---|
| **E** | **Fair Value Disclosures**  |

---

**Financial assets and financial liabilities measured at fair value on the Statement of Financial Position (Continued)**

The table below summarizes the fair values of the financial assets and financial liabilities measured in the Statement of Financial Position at their fair value:

**As at Dec. 31, 2025** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Financial assets and financial liabilities** | | | | |
|  Investments at fair value through profit or loss |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; - External Managers Program | 4495360 | 224966 |  | 4720326 |
| &nbsp;&nbsp;&nbsp;&nbsp; - Investments with equity participation |  |  | 1435173 | 1435173 |
| &nbsp;&nbsp;&nbsp;&nbsp; - Debt securities | 6967412 | 1712809 |  | 8680221 |
| &nbsp;&nbsp;&nbsp;&nbsp; - Investment operations fixed-income portfolio | 218173 | 46768 |  | 264941 |
| Money Market Funds |  | 691412 |  | 691412 |
| Derivative assets |  | 1312674 |  | 1312674 |
| **Total financial assets** | **11680945** | **3988629** | **1435173** | **17104747** |
| Borrowings |  | (36592173) |  | (36592173) |
| Derivative liabilities |  | (841922) |  | (841922) |
| **Total financial liabilities** | **—** | **(37434095)** | **—** | **(37434095)** |

---

**As at Dec. 31, 2024**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Financial assets and financial liabilities** | | | | |
|  Investments at fair value through profit or loss |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; - External Managers Program | 4284987 | 171292 |  | 4456279 |
| &nbsp;&nbsp;&nbsp;&nbsp; - Investments with equity participation |  |  | 1255460 | 1255460 |
| &nbsp;&nbsp;&nbsp;&nbsp; - Debt securities | 7194609 | 1382394 |  | 8577003 |
| &nbsp;&nbsp;&nbsp;&nbsp; - Investment operations fixed-income portfolio | 204264 | 45935 |  | 250199 |
|  Money Market Funds |  | 318474 |  | 318474 |
|  Derivative assets |  | 832061 |  | 832061 |
|  **Total financial assets** | **11683860** | **2750156** | **1255460** | **15689476** |
|  Borrowings |  | (31597860) |  | (31597860) |
|  Derivative liabilities |  | (1175585) |  | (1175585) |
|  **Total financial liabilities** | **—** | **(32773445)** | **—** | **(32773445)** |

---

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

---

| | |
|:---|:---|
| **E** | **Fair Value Disclosures**  |

---

**Financial assets and financial liabilities measured at fair value on the Statement of Financial Position (Continued)**

The MMFs' shares are not traded in any market. The fair value of the MMFs is derived from that of the net assets value, therefore MMFs are classified as Level 2 instruments.

External Managers Program and debt securities have been valued either using the discounted cash flow method based on observable market input, or obtained from market price. Derivative instruments and borrowings have been valued using discounted cash flow methodology based on observable market inputs. Quoted prices (unadjusted) in active markets are typical Level 1 inputs, while inputs other than quoted prices included within Level 1 that are observable for the asset and liability, either directly or indirectly, are typically Level 2 inputs.

In some situations, the inputs used to measure fair value might fall in different level of the fair value hierarchy. The level in the fair value hierarchy within which the fair value measurement falls shall be determined based on the lowest level input that is significant to the fair value measurement in its entirety. When unobservable inputs are significant to the fair value measurement, those financial instruments are to be categorized as level 3.

During the year ended Dec. 31, 2025, due to changes in market conditions for certain investment securities, quoted prices in active markets were no longer available for these securities. However, there was sufficient information available to measure the fair values of these securities based on observable market inputs. Therefore, there were USD30.25 million of debt instruments transferred from Level 1 to Level 2 of the fair value hierarchy. In addition, there were transfers of USD40.93 million in investments of debt instruments from Level 2 to Level 1, when quoted prices in active markets become available.

The table below provides a reconciliation of the fair values of the Bank's Level 3 financial assets for the year ended Dec. 31, 2025 and the year ended Dec. 31, 2024.

**Investments with equity participation:** 

---

| | | |
|:---|:---|:---|
|  | **For the year ended** | **For the year ended** |
|  | **Dec. 31, 2025** | **Dec. 31, 2024** |
|  As at beginning of year | 1255460 | 980416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additions | 282326 | 326578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return of capital contributions | (100326) | (95600) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value (loss)/gain, net | (2287) | 44066 |
|  **Total** | **1435173** | **1255460** |

---

The fair value gains or losses are attributable to changes in unrealized gains or losses relating to those financial assets held at the end of the reporting period, which are recognized in profit or loss under "Net gain on financial instruments measured at fair value and foreign exchange". For the year ended Dec. 31, 2025, the realized gain arising from the Bank's Level 3 financial assets amounted to USD14.03 million (for the year ended Dec. 31, 2024: USD32.34 million).

------

**Asian Infrastructure Investment Bank** 

**Notes to the Financial Statements** 

**For the year ended Dec. 31, 2025** 

***(All amounts in thousands of US Dollars unless otherwise stated)***

---

| | |
|:---|:---|
| **E** | **Fair Value Disclosures**  |

---

**Financial assets and financial liabilities measured at fair value on the Statement of Financial Position (Continued)**

The fair value of the investments with equity participation is mainly based on an adjusted net assets method and discounted cash flow model. The unobservable inputs for discounted cash flow model mainly include weighted average cost of capital, liquidity discount and projected cash flows.

There has been no transfer in and/or out of Level 3 during the year ended Dec. 31, 2025 (for the year ended Dec. 31, 2024: none).

## Ex-3

**Exhibit 3** 

**Description of the Registrant and Recent Developments** 

This description of the Asian Infrastructure Investment Bank ("AIIB" or the "Bank") is dated April 10, 2026 and appears as Exhibit 3 to the annual report on Form 18-K of AIIB for the fiscal year ended December 31, 2025.

---

| | |
|:---|:---|
|  PRESENTATION OF FINANCIAL AND OTHER INFORMATION | 2 |
|  ASIAN INFRASTRUCTURE INVESTMENT BANK | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Overview | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal Status | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Membership, Capital Structure and Reserves | 4 |
|  CAPITALIZATION AND INDEBTEDNESS | 11 |
|  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Overview | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Critical Accounting Policies | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Internal Control over Financial Reporting | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income Statement | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance Sheet | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset Quality | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Debt Record | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; External Auditor Work Papers | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related Party Transactions | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recent Developments | 22 |
|  OPERATIONS OF AIIB | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ordinary Resources and Special Fund Resources | 24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Instruments | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financing Portfolio | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proposed Financings | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financing Approval Process | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Environmental and Social Framework | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Economic Sanctions | 36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AIIB Special Funds | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; External Special Funds | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Quality of Financing Portfolio | 41 |
|  RISK MANAGEMENT | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk Philosophy | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk Appetite Statement | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk Management Architecture | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Three Lines of Defense | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital Adequacy | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Risk Types | 44 |

---

------

---

| | |
|:---|:---|
|  GOVERNANCE AND ADMINISTRATION | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Board of Governors | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Board of Directors | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Board Committees | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Senior Management | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employees | 68 |
|  SELECTED DEMOGRAPHIC AND ECONOMIC DATA | 69 |

---

THE DELIVERY OF THIS DOCUMENT AT ANY TIME DOES NOT IMPLY THAT THE INFORMATION IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE. THIS DOCUMENT (OTHERWISE THAN AS PART OF A PROSPECTUS CONTAINED IN A REGISTRATION STATEMENT FILED UNDER THE U.S. SECURITIES ACT OF 1933) DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES OF THE ASIAN INFRASTRUCTURE INVESTMENT BANK.

**PRESENTATION OF FINANCIAL AND OTHER INFORMATION** 

Amounts in tables and other totals in this Exhibit 3 to this annual report on Form 18-K may not sum exactly due to rounding differences.

------

**ASIAN INFRASTRUCTURE INVESTMENT BANK** 

**Overview** 

AIIB is a multilateral development bank ("MDB") with a mandate to (i) foster sustainable economic development, create wealth and improve infrastructure connectivity in Asia by investing in infrastructure and other productive sectors and (ii) promote regional cooperation and partnership in addressing development challenges by working in close collaboration with other multilateral and bilateral development institutions. The Bank commenced operations on January 16, 2016 to help its members meet a substantial financing gap between the demand for infrastructure in Asia and available financial resources. The Bank aims to work with public and private sector partners to channel its own public resources, together with private and institutional funds, into sustainable infrastructure investment. The Bank maintains its principal office in Beijing, People's Republic of China ("China") and has an additional office in Abu Dhabi, the United Arab Emirates ("UAE").

The Bank's mission is "Financing Infrastructure for Tomorrow," which reflects AIIB's commitment to sustainability, be it financial, economic, social or environmental in nature. The Bank has identified the following thematic priorities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Green Infrastructure: Prioritizing green infrastructure and supporting its members to meet their environmental
and development goals by financing projects that deliver local environmental improvements and investments dedicated to climate action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Connectivity and Regional Cooperation: Prioritizing projects that facilitate better domestic and cross-border
infrastructure connectivity within Asia and between Asia and the rest of the world, and supporting projects that complement cross-border infrastructure connectivity by generating direct measurable benefits in enhancing regional trade, investment and
digital and financial integration across Asian economies and beyond;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Technology-enabled Infrastructure: Supporting projects where the application of technology delivers better value,
quality, productivity, efficiency, resilience, sustainability, inclusion, transparency or better governance along the full project life cycle; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Private Capital Mobilization: Supporting projects that directly or indirectly mobilize private financing into
sectors within the Bank's mandate.

The Bank has developed, and continues to develop, a wide range of operational policies, strategies and frameworks designed to ensure that there is a direct link between the Bank's mandate, mission and thematic priorities and the projects it finances. Sustainable development is an integral part of the Bank's identification, preparation and implementation of projects. In April 2021, the Bank launched its "Sustainable Development Bond Framework" which, among other things, summarizes the Bank's sustainability commitments and the reporting that the Bank will provide on its website concerning the environmental and/or social impacts of Bank financings. The Bank's Sustainable Development Bond Framework and, unless otherwise indicated, information available on, or accessible through, AIIB's website are not incorporated herein by reference.

**Legal Status** 

AIIB was established and operates under the Articles of Agreement (the "Articles of Agreement"), an international treaty to which governments are parties and which was open for signature on June 29, 2015 and entered into force on December 25, 2015. The Bank is not a private institution and does not have private shareholders.

The Articles of Agreement provide that all the powers of AIIB shall be vested in the Board of Governors of AIIB (the "Board of Governors"). The Board of Governors has delegated a broad range of operational oversight functions to the non-resident Board of Directors of AIIB (the "Board of Directors"). See "Governance and Administration." On January 16, 2016, the Board of Governors convened its inaugural meeting in Beijing and declared the Bank open for business.

------

The Articles of Agreement endow AIIB with full juridical personality and, in particular, the full legal capacity (i) to contract; (ii) to acquire, and dispose of, immovable and movable property; (iii) to institute and respond to legal proceedings; and (iv) to take such other action as may be necessary or useful for its purpose and activities. The Articles of Agreement provide that the Bank enjoys, in the territory of each of its members, the following immunities, exemptions and privileges:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Bank enjoys immunity from every form of legal process, except in cases arising out of or in connection with
the exercise of its power to raise funds, to guarantee obligations, or to buy and sell securities, in which case actions may be brought in a court of competent jurisdiction in the territory in which the Bank has an office, has appointed an agent for
service of process or has issued or guaranteed securities. Moreover, no action may be brought against the Bank by a member or an instrumentality of such member; instead they have recourse to special procedures for settlement of disputes as described
in the Articles of Agreement, in the by-laws and regulations of the Bank, or in contracts entered with the Bank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The property and other assets of the Bank are immune from all forms of seizure, attachment or execution before
delivery of a final judgment against the Bank, and from search, requisition, confiscation, expropriation or any other forceful taking by executive or legislative action. The archives of the Bank and all documents belonging to it or held by it are
inviolable, regardless of location or who holds them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All Governors, Directors, Alternate Governors, Alternate Directors, the President, Vice-Presidents and other
officers and employees of the Bank are immune from legal process with respect to acts performed by them in their official capacity, except when the Bank waives this immunity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Bank, its assets, property, income and its operations and transactions are immune from all taxes and customs
duties, and the Bank is immune from any obligation relating to the payment, withholding or collection of any tax or duty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All of the property and assets of the Bank are free from restrictions, regulations, controls and moratoria of any
nature (subject to the Articles of Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The salaries, emoluments and expenses which the Bank pays to its Directors, Alternate Directors, President,
Vice-President(s) and other officers and employees of the Bank are exempt from taxation, save to the extent that a member has explicitly reserved its right to tax such payments to its nationals or citizens.

**Membership, Capital Structure and Reserves** 

***Membership***

Membership in AIIB is open to members of the International Bank for Reconstruction and Development ("IBRD" or the "World Bank") or the Asian Development Bank ("ADB"). In the case of an applicant that is not a sovereign or not responsible for the conduct of its international relations (e.g., a political subdivision such as a semi-autonomous territory), application for membership in the Bank must be presented or agreed by the member of the Bank responsible for its international relations.

In October 2014, 22 countries signed a memorandum of understanding to establish the Bank. By the end of March 2015, 57 countries committed to being part of the process to design and establish the Bank. Negotiations on the Articles of Agreement concluded on May 22, 2015 and by the end of 2015, 57 prospective members signed the Articles of Agreement. Signatories to the Articles of Agreement were required to ratify, accept or approve the Articles of Agreement no later than December 31, 2016, or such later date as determined by the Board of Governors by an affirmative vote of a majority of the total number of Governors, representing not less than a majority of the total voting power of AIIB's members (a "Special Majority Vote").

------

Members of IBRD or ADB which were not signatories to the Articles of Agreement may be admitted by a Special Majority Vote of the Board of Governors. In respect of membership for non-signatories to the Articles of Agreement, the Bank has established procedures for membership. These procedures include initial informal discussions with the Corporate Secretariat of the Bank followed by a firm written expression of interest in membership addressed to the Corporate Secretary and signed by an applicant's duly authorized person with the rank of minister or above. If the applicant receives an informal consensus for admission from the Board of Directors, the Bank would then determine the indicative terms and conditions of membership of the applicant consistent with the Articles of Agreement. At this point, a formal application would then be made by the applicant, which would be signed by the applicant's competent authority, such as Head of Government, Head of State or Foreign Minister. Upon receipt of the membership application, the terms and conditions of membership (including the maximum number of shares of the Bank to which the applicant may subscribe) would be recommended by the Board of Directors to the Board of Governors for its approval. Following approval by a Special Majority Vote of the Board of Governors, the applicant would prepare the necessary domestic authorization and legislation to become a member, and take other steps required for membership, including making payment of a first installment for subscribed paid-in shares, appointing a Governor and Alternate Governor and assigning votes to a Director.

There are 57 signatories to the Articles of Agreement, all of which have ratified, approved or accepted the Articles of Agreement. Consequently, the Bank has 57 founding members.

As of February 28, 2026, the Bank had 106 members (52 regional and 54 non-regional). See "Table 1: Membership and Capital Allocation" below.

As of February 28, 2026, the Bank also had five prospective members (one regional and four non-regional). Prospective members denote those jurisdictions whose membership applications have already been approved by the Board of Governors, but that have not become members yet. As of February 28, 2026, the Bank's prospective regional member was Lebanon. As of February 28, 2026, the Bank's prospective non-regional members were: Bolivia, Colombia, Nigeria, and Venezuela. The deadline for accession is December 31, 2027, except to the extent this deadline is extended by the Board of Governors.

If a member fails to fulfill any of its obligations to the Bank, the Board of Governors may suspend such member by an affirmative vote of two-thirds of the total number of Governors, representing not less than three-fourths of the total voting power of AIIB's members (a "Super Majority Vote"). A suspended member automatically ceases to be a member one year from the date of its suspension, unless the Board of Governors decides by a Super Majority Vote to restore the member to good standing. Other than the right of withdrawal, a suspended member is not allowed to exercise any rights under the Articles of Agreement, but remains subject to all obligations under the Articles of Agreement.

***Relationships with Other International Financial Institutions***

In the interest of partnership and cooperation, the Bank has in effect Memoranda of Understanding that address, among other things, areas and forms of cooperation with several international financial institutions. As of December 31, 2025, the Bank had in effect Memoranda of Understanding with the African Development Bank ("AfDB") and the African Development Fund, Agence Française de Développement, ADB, the Arab Fund for Economic and Social Development, ASEAN+3 Macroeconomic Research Office, Banco Nacional de Desenvolvimento Econômico e Social, the China International Development Cooperation Agency, Corporación Andina de Fomento, the European Bank for Reconstruction and Development ("EBRD"), the European Investment Bank, the European Stability Mechanism, the Export-Import Bank of China, FONPLATA Development Bank, the Food and Agriculture Organization of the United Nations, the International Renewable Energy Agency, the Islamic Development Bank Group ("IsDB"), Kreditanstalt für Wiederaufbau, the New Development Bank ("NDB"), the Nordic Investment Bank, the OPEC Fund for International Development, the Saudi Fund for Development, the United Nations Development Programme and the World Bank Group. As of December 31, 2025, the Bank had also entered into Co-Financing Framework Agreements with certain World Bank Group entities (IBRD and the International Development Association ("IDA")), ADB, EBRD and Agence Française de Développement.

***Capital Structure***

The authorized capital of the Bank consists of US$100,000,000,000 divided into paid-in shares having an aggregate par value of US$20,000,000,000 and callable shares having an aggregate par value of US$80,000,000,000. As of December 31, 2025, the members had subscribed an aggregate of US$97,632,200,000 of the Bank's share capital, of which US$19,526,400,000 was paid-in and US$78,105,800,000 was callable.

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Payment of subscribed, paid-in capital is due in five installments, except for members designated as less developed countries, which may pay in up to ten installments. As of December 31, 2025, US$19,305,961,378 had been received from members, all in convertible currency, US$203,976,142 was due but not yet received and US$16,462,480 was not yet due. Capital subscriptions may be paid in U.S. dollars or in other convertible currency. However, to the extent that a member is a less developed country, the member may pay a portion of up to 50% of each installment in the currency of the member, with the Bank having discretion as to what amount is equivalent to the full value in terms of U.S. dollars and the member maintaining the value of all such currency held by the Bank should the member's currency depreciate in the Bank's opinion.

The authorized capital stock of the Bank may be increased only by a Super Majority Vote.

Total voting power of each member consists of the sum of its basic votes, share votes and, in the case of a founding member, its founding member votes. A member's basic votes equal 12% of the aggregate sum of basic votes, share votes and founding member votes of all the members, divided by the number of members. Share votes consist of the number of shares of the capital stock of the Bank subscribed to by that member. All rights, including voting rights, acquired in respect of paid-in and associated callable shares for which payments are due but have not been received are suspended until full payment is received by the Bank. Each founding member is allocated 600 founding member votes.

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**Table 1: Membership and Capital Allocation<sup>(1)</sup>** 

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Total Subscriptions** | **Total Subscriptions** | **Voting Power** | **Voting Power** | | | |
| <br>**Member** |<br>**Year of<br>Accession** | **Amount**<br>**(million<br>USD)** | **Percent of<br>Total** | **Share<br>Votes** | **Founding<br>Member<br>Votes** |<br>**Basic<br>Votes** |<br>**Total<br>Votes** |<br>**Percent of<br>Total** |
|  **Regional** |  |  |  |  |  |  |  |  |
|  Afghanistan | 2017 | 86.6 | **0.0887%** | 520 |  | 1287 | 1807 | **0.1590%** |
|  Armenia | 2025 | 37.4 | **0.0383%** | 374 |  | 1287 | 1661 | **0.1461%** |
|  Australia | 2015 | 3691.2 | **3.7807%** | 36912 | 600 | 1287 | 38799 | **3.4132%** |
|  Azerbaijan | 2016 | 254.1 | **0.2603%** | 2541 | 600 | 1287 | 4428 | **0.3895%** |
|  Bahrain | 2018 | 103.6 | **0.1061%** | 1036 |  | 1287 | 2323 | **0.2044%** |
|  Bangladesh | 2016 | 660.5 | **0.6765%** | 6605 | 600 | 1287 | 8492 | **0.7471%** |
|  Brunei Darussalam | 2015 | 52.4 | **0.0537%** | 524 | 600 | 1287 | 2411 | **0.2121%** |
|  Cambodia | 2016 | 62.3 | **0.0638%** | 623 | 600 | 1287 | 2510 | **0.2208%** |
|  China | 2015 | 29780.4 | **30.5026%** | 297804 | 600 | 1287 | 299691 | **26.3642%** |
|  Cook Islands | 2020 | 0.5 | **0.0005%** | 5 |  | 1287 | 1292 | **0.1137%** |
|  Cyprus | 2018 | 20.0 | **0.0205%** | 200 |  | 1287 | 1487 | **0.1308%** |
|  Fiji | 2017 | 12.5 | **0.0128%** | 125 |  | 1287 | 1412 | **0.1242%** |
|  Georgia | 2015 | 53.9 | **0.0552%** | 539 | 600 | 1287 | 2426 | **0.2134%** |
|  Hong Kong, China | 2017 | 765.1 | **0.7837%** | 7651 |  | 1287 | 8938 | **0.7863%** |
|  India | 2016 | 8367.3 | **8.5702%** | 83673 | 600 | 1287 | 85560 | **7.5268%** |
|  Indonesia | 2016 | 3360.7 | **3.4422%** | 33607 | 600 | 1287 | 35494 | **3.1224%** |
|  Iran | 2017 | 1580.8 | **1.6191%** | 9485 | 600 | 1287 | 11372 | **1.0004%** |
|  Iraq | 2022 | 25.0 | **0.0256%** | 250 |  | 1287 | 1537 | **0.1352%** |
|  Israel | 2016 | 749.9 | **0.7681%** | 7499 | 600 | 1287 | 9386 | **0.8257%** |
|  Jordan | 2015 | 119.2 | **0.1221%** | 1192 | 600 | 1287 | 3079 | **0.2709%** |
|  Kazakhstan | 2016 | 729.3 | **0.7470%** | 7293 | 600 | 1287 | 9180 | **0.8076%** |
|  Korea | 2015 | 3738.7 | **3.8294%** | 37387 | 600 | 1287 | 39274 | **3.4550%** |
|  Kuwait | 2025 | 536.0 | **0.5490%** | 5360 | 600 | 1287 | 7247 | **0.6375%** |
|  Kyrgyzstan | 2016 | 26.8 | **0.0274%** | 268 | 600 | 1287 | 2155 | **0.1896%** |
|  Lao PDR | 2016 | 43.0 | **0.0440%** | 430 | 600 | 1287 | 2317 | **0.2038%** |
|  Malaysia | 2017 | 109.5 | **0.1122%** | 1095 | 600 | 1287 | 2982 | **0.2623%** |
|  Maldives | 2016 | 7.2 | **0.0074%** | 72 | 600 | 1287 | 1959 | **0.1723%** |
|  Mongolia | 2015 | 41.1 | **0.0421%** | 411 | 600 | 1287 | 2298 | **0.2022%** |
|  Myanmar | 2015 | 264.5 | **0.2709%** | 1587 | 600 | 1287 | 3474 | **0.3056%** |
|  Nauru | 2025 | 0.5 | **0.0005%** | 5 |  | 1287 | 1292 | **0.1137%** |
|  Nepal | 2016 | 80.9 | **0.0829%** | 809 | 600 | 1287 | 2696 | **0.2372%** |
|  New Zealand | 2015 | 461.5 | **0.4727%** | 4615 | 600 | 1287 | 6502 | **0.5720%** |
|  Oman | 2016 | 259.2 | **0.2655%** | 2592 | 600 | 1287 | 4479 | **0.3940%** |
|  Pakistan | 2015 | 1034.1 | **1.0592%** | 10341 | 600 | 1287 | 12228 | **1.0757%** |
|  Papua New Guinea | 2024 | 5.0 | **0.0051%** | 50 |  | 1287 | 1337 | **0.1176%** |
|  Philippines | 2016 | 979.1 | **1.0028%** | 9791 | 600 | 1287 | 11678 | **1.0273%** |
|  Qatar | 2016 | 604.4 | **0.6191%** | 6044 | 600 | 1287 | 7931 | **0.6977%** |
|  Russia | 2015 | 6536.2 | **6.6947%** | 65362 | 600 | 1287 | 67249 | **5.9160%** |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Total Subscriptions** | **Total Subscriptions** | **Voting Power** | **Voting Power** | | | |
| <br>**Member** |<br>**Year of<br>Accession** | **Amount**<br>**(million<br>USD)** | **Percent of<br>Total** | **Share<br>Votes** | **Founding<br>Member<br>Votes** |<br>**Basic<br>Votes** |<br>**Total<br>Votes** |<br>**Percent of<br>Total** |
|  Samoa | 2018 | 2.1 | **0.0022%** | 21 |  | 1287 | 1308 | **0.1151%** |
|  Saudi Arabia | 2016 | 2544.6 | **2.6063%** | 25446 | 600 | 1287 | 27333 | **2.4045%** |
|  Singapore | 2015 | 250.0 | **0.2561%** | 2500 | 600 | 1287 | 4387 | **0.3859%** |
|  Solomon Islands | 2025 | 0.5 | **0.0005%** | 5 |  | 1287 | 1292 | **0.1137%** |
|  Sri Lanka | 2016 | 269.0 | **0.2755%** | 2690 | 600 | 1287 | 4577 | **0.4026%** |
|  Tajikistan | 2016 | 30.9 | **0.0316%** | 309 | 600 | 1287 | 2196 | **0.1932%** |
|  Thailand | 2016 | 1427.5 | **1.4621%** | 14275 | 600 | 1287 | 16162 | **1.4218%** |
|  Timor-Leste | 2017 | 16.0 | **0.0164%** | 160 |  | 1287 | 1447 | **0.1273%** |
|  Tonga | 2021 | 1.2 | **0.0012%** | 12 |  | 1287 | 1299 | **0.1143%** |
|  Türkiye | 2016 | 2609.9 | **2.6732%** | 26099 | 600 | 1287 | 27986 | **2.4620%** |
|  UAE | 2016 | 1185.7 | **1.2145%** | 11857 | 600 | 1287 | 13744 | **1.2091%** |
|  Uzbekistan | 2016 | 219.8 | **0.2251%** | 2198 | 600 | 1287 | 4085 | **0.3594%** |
|  Vanuatu | 2018 | 0.5 | **0.0005%** | 5 |  | 1287 | 1292 | **0.1137%** |
|  Viet Nam | 2016 | 663.3 | **0.6794%** | 6633 | 600 | 1287 | 8520 | **0.7495%** |
|  **Total Regional** |  | **74461.4** | **76.2673%** | **736887** | **22200** | **66924** | **826011** | **72.6652%** |
|  **Non-Regional** |  |  |  |  |  |  |  |  |
|  Algeria | 2019 | 5.0 | **0.0051%** | 50 |  | 1287 | 1337 | **0.1176%** |
|  Argentina | 2021 | 5.0 | **0.0051%** | 50 |  | 1287 | 1337 | **0.1176%** |
|  Austria | 2015 | 500.8 | **0.5129%** | 5008 | 600 | 1287 | 6895 | **0.6066%** |
|  Belarus | 2019 | 64.1 | **0.0657%** | 641 |  | 1287 | 1928 | **0.1696%** |
|  Belgium | 2019 | 284.6 | **0.2915%** | 2846 |  | 1287 | 4133 | **0.3636%** |
|  Benin | 2020 | 5.0 | **0.0051%** | 50 |  | 1287 | 1337 | **0.1176%** |
|  Brazil | 2020 | 5.0 | **0.0051%** | 50 | 600 | 1287 | 1937 | **0.1704%** |
|  Canada | 2018 | 995.4 | **1.0195%** | 7963 |  | 1287 | 9250 | **0.8137%** |
|  Chile | 2021 | 10.0 | **0.0102%** | 100 |  | 1287 | 1387 | **0.1220%** |
|  Côte d'Ivoire | 2020 | 5.0 | **0.0051%** | 41 |  | 1287 | 1328 | **0.1168%** |
|  Croatia | 2021 | 5.0 | **0.0051%** | 50 |  | 1287 | 1337 | **0.1176%** |
|  Denmark | 2016 | 369.5 | **0.3785%** | 3695 | 600 | 1287 | 5582 | **0.4911%** |
|  Djibouti | 2024 | 0.5 | **0.0005%** | 5 |  | 1287 | 1292 | **0.1137%** |
|  Ecuador | 2019 | 5.0 | **0.0051%** | 50 |  | 1287 | 1337 | **0.1176%** |
|  Egypt | 2016 | 650.5 | **0.6663%** | 6505 | 600 | 1287 | 8392 | **0.7383%** |
|  El Salvador | 2025 | 5.0 | **0.0051%** | 40 |  | 1287 | 1327 | **0.1167%** |
|  Ethiopia | 2017 | 45.8 | **0.0469%** | 458 |  | 1287 | 1745 | **0.1535%** |
|  Finland | 2016 | 310.3 | **0.3178%** | 3103 | 600 | 1287 | 4990 | **0.4390%** |
|  France | 2016 | 3375.6 | **3.4575%** | 33756 | 600 | 1287 | 35643 | **3.1356%** |
|  Germany | 2015 | 4484.2 | **4.5930%** | 44842 | 600 | 1287 | 46729 | **4.1108%** |
|  Ghana | 2020 | 5.0 | **0.0051%** | 50 |  | 1287 | 1337 | **0.1176%** |
|  Greece | 2019 | 10.0 | **0.0102%** | 100 |  | 1287 | 1387 | **0.1220%** |
|  Guinea | 2019 | 5.0 | **0.0051%** | 20 |  | 1287 | 1307 | **0.1150%** |
|  Hungary | 2017 | 100.0 | **0.1024%** | 1000 |  | 1287 | 2287 | **0.2012%** |
|  Iceland | 2016 | 17.6 | **0.0180%** | 176 | 600 | 1287 | 2063 | **0.1815%** |
|  Ireland | 2017 | 131.3 | **0.1345%** | 1313 |  | 1287 | 2600 | **0.2287%** |
|  Italy | 2016 | 2571.8 | **2.6342%** | 25718 | 600 | 1287 | 27605 | **2.4284%** |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Total Subscriptions** | **Total Subscriptions** | **Voting Power** | **Voting Power** | | | |
| <br>**Member** |<br>**Year of<br>Accession** | **Amount**<br>**(million<br>USD)** | **Percent of<br>Total** | **Share<br>Votes** | **Founding<br>Member<br>Votes** |<br>**Basic<br>Votes** |<br>**Total Votes** |<br>**Percent of<br>Total** |
|  Kenya | 2024 | 5.0 | **0.0051%** | 50 |  | 1287 | 1337 | **0.1176%** |
|  Liberia | 2021 | 5.0 | **0.0051%** | 30 |  | 1287 | 1317 | **0.1159%** |
|  Libya | 2023 | 52.6 | **0.0539%** | 526 |  | 1287 | 1813 | **0.1595%** |
|  Luxembourg | 2015 | 69.7 | **0.0714%** | 697 | 600 | 1287 | 2584 | **0.2273%** |
|  Madagascar | 2018 | 5.0 | **0.0051%** | 50 |  | 1287 | 1337 | **0.1176%** |
|  Malta | 2016 | 13.6 | **0.0139%** | 136 | 600 | 1287 | 2023 | **0.1780%** |
|  Mauritania | 2025 | 5.0 | **0.0051%** | 50 |  | 1287 | 1337 | **0.1176%** |
|  Morocco | 2022 | 5.0 | **0.0051%** | 50 |  | 1287 | 1337 | **0.1176%** |
|  Netherlands | 2015 | 1031.3 | **1.0563%** | 10313 | 600 | 1287 | 12200 | **1.0732%** |
|  Norway | 2015 | 550.6 | **0.5640%** | 5506 | 600 | 1287 | 7393 | **0.6504%** |
|  Peru | 2022 | 154.6 | **0.1583%** | 1546 |  | 1287 | 2833 | **0.2492%** |
|  Poland | 2016 | 831.8 | **0.8520%** | 8318 | 600 | 1287 | 10205 | **0.8977%** |
|  Portugal | 2017 | 65.0 | **0.0666%** | 650 | 600 | 1287 | 2537 | **0.2232%** |
|  Romania | 2018 | 153.0 | **0.1567%** | 1530 |  | 1287 | 2817 | **0.2478%** |
|  Rwanda | 2020 | 5.0 | **0.0051%** | 50 |  | 1287 | 1337 | **0.1176%** |
|  Senegal | 2025 | 5.0 | **0.0051%** | 50 |  | 1287 | 1337 | **0.1176%** |
|  Serbia | 2019 | 5.0 | **0.0051%** | 50 |  | 1287 | 1337 | **0.1176%** |
|  South Africa | 2023 | 5.0 | **0.0051%** | 50 | 600 | 1287 | 1937 | **0.1704%** |
|  Spain | 2017 | 1761.5 | **1.8042%** | 17615 | 600 | 1287 | 19502 | **1.7156%** |
|  Sudan | 2018 | 59.0 | **0.0604%** | 169 |  | 1287 | 1456 | **0.1281%** |
|  Sweden | 2016 | 630.0 | **0.6453%** | 6300 | 600 | 1287 | 8187 | **0.7202%** |
|  Switzerland | 2016 | 706.4 | **0.7235%** | 7064 | 600 | 1287 | 8951 | **0.7874%** |
|  Tanzania | 2025 | 5.0 | **0.0051%** | 50 |  | 1287 | 1337 | **0.1176%** |
|  Togo | 2023 | 5.0 | **0.0051%** | 50 |  | 1287 | 1337 | **0.1176%** |
|  Tunisia | 2022 | 5.0 | **0.0051%** | 50 |  | 1287 | 1337 | **0.1176%** |
|  United Kingdom | 2015 | 3054.7 | **3.1288%** | 30547 | 600 | 1287 | 32434 | **2.8533%** |
|  Uruguay | 2020 | 5.0 | **0.0051%** | 50 |  | 1287 | 1337 | **0.1176%** |
|  **Total Non-Regional** |  | **23170.8** | **23.7327%** | **229227** | **12000** | **69498** | **310725** | **27.3348%** |
|  **Grand Total** |  | **97632.2** | **100.0000%** | **966114** | **34200** | **136422** | **1136736** | **100.0000%** |

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Note:

Subscription and voting figures are as of February 28, 2026.

As shown in the table above, China holds the largest percentage of voting power, with 26.3642% of the total as of February 28, 2026. Because Super Majority Votes require in part the affirmative vote of Governors representing not less than three-fourths of the total voting power of AIIB's members, any member with over 25% of AIIB's total voting power could effectively prevent actions requiring a Super Majority Vote from occurring. See "Governance and Administration–Board of Governors" for further information on the types of measures that require a Super Majority Vote.

***Withdrawal and Suspension***

Pursuant to Article 37 of the Articles of Agreement, any member may withdraw from the Bank at any time by delivering a notice to the Bank, and such withdrawal will become effective (and the withdrawing member's membership will cease) on the date specified in the notice but no sooner than six months after the date that notice is received by the Bank. At any time before the withdrawal becomes effective, the member may cancel its notice of intention to withdraw. A withdrawing member remains liable for all direct and contingent obligations to the Bank to which it was subject as of the date of delivery of the withdrawal notice. At the time membership ceases, the Bank shall arrange for the repurchase of the withdrawing member's shares by the Bank as a part of the settlement of accounts with such member.

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Pursuant to Article 38 of the Articles of Agreement, if a member fails to fulfill any of its obligations to the Bank, the Board of Governors may suspend such member by a Super Majority Vote. See "Governance and Administration–Board of Governors." A suspended member shall automatically cease to be a member one year from the date of its suspension, unless the Board of Governors decides by a Super Majority Vote to restore the member to good standing. While under suspension, a member shall not be entitled to exercise any rights under the Articles of Agreement, except the right of withdrawal, but shall remain subject to all its obligations.

***Reserves***

Pursuant to Article 18(1) of the Articles of Agreement, the Board of Governors shall determine at least annually what part of the net income of AIIB shall be allocated, after making provision for reserves, to retained earnings or other purposes and what part, if any, shall be distributed to the members.

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**CAPITALIZATION AND INDEBTEDNESS** 

The following table sets forth AIIB's capitalization and indebtedness as of December 31, 2025 and does not give effect to any transaction since December 31, 2025:

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| | |
|:---|:---|
|  | **As of December 31,<br>2025** |
|  | *(in thousands of US$)* |
|  **Borrowings** | 39069441 |
|  **Members' equity** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid-in capital | 19526400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reserves for accretion of paid-in capital receivables | (814) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reserves for unrealized loss in fair-valued borrowings arising from changes in own credit risk | (114700) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retained earnings | 4167352 |
|  **Total members' equity** | 23578238 |

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**MANAGEMENT'S DISCUSSION AND ANALYSIS OF** 

**FINANCIAL CONDITION AND RESULTS OF OPERATIONS** 

The following discussion should be read in conjunction with AIIB's audited financial statements as of and for the year ended December 31, 2025 (the "2025 Audited Financial Statements"), which are included in Exhibit 2 to this annual report on Form 18-K. The 2025 Audited Financial Statements were audited by AIIB's independent auditor PricewaterhouseCoopers, and have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards").

The 2025 Audited Financial Statements present fairly, in all material respects, the financial position of the Bank as of December 31, 2025, and its results of operations and its cash flows for the year ended December 31, 2025, in accordance with IFRS Accounting Standards. At its meeting held on March 24, 2026, the Board of Directors recommended to the Board of Governors that it approve the 2025 Audited Financial Statements pursuant to its authority under Article 23 of the Articles of Agreement. The 2025 Audited Financial Statements have been submitted for approval to the Board of Governors.

**Overview** 

AIIB is an MDB with a mandate to (i) foster sustainable economic development, create wealth and improve infrastructure connectivity in Asia by investing in infrastructure and other productive sectors and (ii) promote regional cooperation and partnership in addressing development challenges by working in close collaboration with other multilateral and bilateral development institutions. The Bank commenced operations on January 16, 2016 to help its members meet a substantial financing gap between the demand for infrastructure in Asia and available financial resources. The Bank aims to work with public and private sector partners to channel its own public resources, together with private and institutional funds, into sustainable infrastructure investment. The Bank maintains its principal office in Beijing, China and has an additional office in Abu Dhabi, the UAE.

The Bank's mission is "Financing Infrastructure for Tomorrow," which reflects AIIB's commitment to sustainability, be it financial, economic, social or environmental in nature. The Bank has identified the following thematic priorities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Green Infrastructure: Prioritizing green infrastructure and supporting its members to meet their environmental
and development goals by financing projects that deliver local environmental improvements and investments dedicated to climate action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Connectivity and Regional Cooperation: Prioritizing projects that facilitate better domestic and cross-border
infrastructure connectivity within Asia and between Asia and the rest of the world, and supporting projects that complement cross-border infrastructure connectivity by generating direct measurable benefits in enhancing regional trade, investment and
digital and financial integration across Asian economies and beyond;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Technology-enabled Infrastructure: Supporting projects where the application of technology delivers better value,
quality, productivity, efficiency, resilience, sustainability, inclusion, transparency or better governance along the full project life cycle; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Private Capital Mobilization: Supporting projects that directly or indirectly mobilize private financing into
sectors within the Bank's mandate.

**Critical Accounting Policies** 

AIIB's financial statements are prepared in accordance with IFRS Accounting Standards. The financial year of the Bank begins on January 1 and ends on December 31 of each year.

The Bank has adopted all of the IFRS Accounting Standards and interpretations effective for annual periods beginning with the financial year commencing on January 16, 2016, the date the Bank commenced operations. AIIB's financial statements are prepared under the historical cost convention, except for those financial assets and liabilities measured at fair value. The financial statements are prepared on a going concern basis. AIIB's functional and presentation currency is the U.S. dollar.

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The preparation of financial statements in conformity with IFRS Accounting Standards requires the use of certain critical accounting estimates. It also requires management to exercise judgment in its process of applying the Bank's policies. The areas involving a higher degree of judgment or complexity or areas where judgments or estimates are significant to the 2025 Audited Financial Statements are disclosed therein under Note B5.

**Internal Control over Financial Reporting** 

The management of the Bank is responsible for establishing, implementing and maintaining effective internal control over financial reporting for financial presentation and measurement in conformity with IFRS Accounting Standards. The Bank's control over financial reporting is reviewed by the Audit and Risk Committee of the Board of Directors, and is designed to provide reasonable assurance with respect to the preparation of financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. In addition, the effectiveness of an internal control system can change with circumstances, such as changes in business and operating environment, including the increased relevance of technology and considerations on outsourcing of functions, systems and platforms.

The management of the Bank assessed the effectiveness of the Bank's internal control over financial reporting as of December 31, 2025, based on the criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, the Bank's management asserts that, as of December 31, 2025, the Bank maintained effective internal control over its financial reporting as set out in the 2025 Audited Financial Statements.

PricewaterhouseCoopers was engaged to perform a reasonable assurance engagement on the assessment by the Bank's management that the Bank maintained effective internal control over financial reporting as of December 31, 2025, as stated in its report included in Exhibit 2 of this annual report on Form 18-K.

**Income Statement** 

***Interest Income***

Interest income consists of (i) interest earned on loan investments, which includes the amortization of front-end fees and other costs related to loan origination; (ii) interest earned on debt securities; (iii) interest earned on cash, cash equivalents and deposits (primarily, term deposits); and (iv) interest earned from reverse repurchase agreements.

*Years Ended December 31, 2025 and 2024.* AIIB's total interest income decreased to US$2,160.8 million for the year ended December 31, 2025 from US$2,227.5 million for the year ended December 31, 2024, mainly as a result of a decrease in interest income from cash, cash equivalents and deposits and a decrease in interest income earned on loan investments, which were offset in part by an increase in interest income earned on debt securities. Interest income from cash, cash equivalents and deposits decreased to US$226.9 million for the year ended December 31, 2025 from US$308.6 million for the year ended December 31, 2024, mainly as a result of a lower interest-rate environment. Interest income from loan investments decreased to US$1,468.4 million for the year ended December 31, 2025 from US$1,527.8 million for the year ended December 31, 2024, mainly as a result of a lower interest-rate environment and volatility in benchmark interest rates across key currencies, in particular the U.S. dollar and the Euro. Interest income from debt securities increased to US$461.3 million for the year ended December 31, 2025 from US$391.0 million for the year ended December 31, 2024, mainly as a result of an increase in the average amount of debt securities held by AIIB.

For the year ended December 31, 2025, 68% of AIIB's total interest income was from loan investments, 21% was from debt securities, 10% was from cash, cash equivalents and deposits, and less than 1% was from reverse repurchase agreements. For the year ended December 31, 2024, 69% of AIIB's total interest income was from loan investments, 18% was from debt securities, 14% was from cash, cash equivalents and deposits, and less than 1% was from reverse repurchase agreements.

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***Interest Expense***

Interest expense mainly consists of interest expense on borrowings.

*Years Ended December 31, 2025 and 2024.* AIIB's interest expense increased to US$1,310.8 million for the year ended December 31, 2025 from US$1,140.8 million for the year ended December 31, 2024, mainly as a result of an increase in outstanding bond issuances and an increase in the average maturity of AIIB's outstanding borrowings. The table below sets forth the aggregate amounts of AIIB's outstanding borrowings as of December 31, 2025 and December 31, 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2025<sup>(1)(2)</sup>** | **As of December 31, 2025<sup>(1)(2)</sup>** | **As of December 31, 2024<sup>(1)(2)</sup>** | **As of December 31, 2024<sup>(1)(2)</sup>** |
| **Currency** | **Notional Amount<br>(in millions)** | **Notional Amount<br>(in millions of<br>US$)** | **Notional Amount<br>(in millions)** | **Notional Amount<br>(in millions of<br>US$)** |
|  Australian dollars | 2050.0 | 1369.8 | 1550.0 | 963.5 |
|  Chinese yuan | 20638.0 | 2953.9 | 19223.0 | 2628.6 |
|  Euro | 3650.0 | 4278.9 | 2650.0 | 2761.0 |
|  Georgian lari | 40.0 | 14.8 | 266.6 | 94.9 |
|  Hong Kong dollars | 8630.0 | 1108.7 | 5780.0 | 744.5 |
|  Hungarian forint | 2800.0 | 8.5 |  |  |
|  Indian rupee | 103820.0 | 1155.5 | 88820.0 | 1037.4 |
|  Indonesian rupiah | 267000.0 | 16.0 | 267000.0 | 16.0 |
|  Mexican pesos | 20151.8 | 1119.2 | 15151.8 | 731.5 |
|  Philippine pesos | 3800.0 | 64.4 | 4800.0 | 82.8 |
|  Polish złoty | 100.0 | 27.8 | 100.0 | 24.4 |
|  Pound sterling | 2750.0 | 3693.3 | 3300.0 | 4142.8 |
|  Russian rubles |  |  | 6677.7 | 61.0 |
|  South African rand | 500.0 | 30.1 | 500.0 | 26.7 |
|  Swiss franc | 300.0 | 377.8 | 200.0 | 221.6 |
|  Thai baht |  |  | 350.0 | 10.2 |
|  Turkish lira | 11700.0 | 272.4 | 6650.0 | 188.1 |
|  U.S. dollars | 21535.0 | 21535.0 | 19800.0 | 19800.0 |
|  Vietnamese dong | 700000.0 | 28.0 | 400000.0 | 16.0 |
|  **Total** |  | **38054.2** |  | **33550.9** |

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Notes:

(1) The figures set forth in this table exclude amounts of borrowings issued pursuant to AIIB's
Euro-Commercial Paper Programme. Pursuant to this programme, between December 31, 2024 and December 31, 2025, AIIB issued an aggregate notional amount of US$11,065.6 million of zero coupon notes and redeemed an aggregate notional
amount of US$9,856.6 million equivalent of zero coupon notes, resulting in a net increase of US$1,209.0 million equivalent of borrowings pursuant to AIIB's Euro-Commercial Paper Programme.

(2) The figures included in this table are presented as notional amounts and therefore do not include premiums,
discounts and other accounting adjustments that are included in the total amounts of borrowings as at December 31, 2025 and 2024, which are included in AIIB's Statement of Financial Position as at December 31, 2025, which is included
in the 2025 Audited Financial Statements.

***Net Interest Income***

Net interest income is interest income less interest expense.

*Years Ended December 31, 2025 and 2024.* Mainly for the reasons set forth above, AIIB's net interest income decreased to US$850.0 million for the year ended December 31, 2025 from US$1,086.7 million for the year ended December 31, 2024.

***Net Fee and Commission Income***

Net fee and commission income mainly consists of (i) loan and guarantee fees charged to borrowers, and (ii) administration fees due to AIIB, including fees paid to AIIB for services as administrator of the Multilateral Cooperation Center for Development Finance ("MCDF") and as implementing partner, technical partner or similar for other multilateral partnership facilities, less (iii) co-financing service fees paid in respect of co-financing arrangements.

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*Years Ended December 31, 2025 and 2024.* AIIB's net fee and commission income increased to US$47.7 million for the year ended December 31, 2025 from US$43.0 million for the year ended December 31, 2024, mainly as a result of an increase in loan and guarantee fees resulting from higher loan and guarantee volumes. Loan and guarantee fees increased to US$47.8 million for the year ended December 31, 2025 from US$44.6 million for the year ended December 31, 2024.

***Net Gain on Financial Instruments Measured at Fair Value and Foreign Exchange***

Net gain on financial instruments measured at fair value and foreign exchange consists of (i) net gain or loss on financial instruments measured at fair value through profit or loss and (ii) net foreign exchange gain or loss. Several of the Bank's financial assets and liabilities are measured at fair value, and movements in market variables, including interest rates, credit spreads and foreign exchange rates, may result in volatility in this line item from period to period.

Net gain or loss on financial instruments measured at fair value through profit or loss reflects the change in fair value of (i) AIIB's investments in debt securities managed in the Bank's treasury investment portfolio, including bond investments, commercial paper and certificates of deposit, that are measured at fair value through profit or loss; (ii) portfolios of high credit quality securities managed by external asset managers engaged by AIIB, which are managed in the Bank's treasury investment portfolio; (iii) AIIB's investments with equity participation, which are managed in the Bank's investment operations portfolio and include investments in limited partnership funds managed by general partners that make investment decisions on behalf of the limited partners of such funds, investments in venture capital associates and others; (iv) a fixed-income portfolio managed by an external asset manager the primary objective of which is to develop climate bond markets in Asia, and other debt securities for infrastructure and development purposes, which are managed in the Bank's investment operations portfolio; (v) AIIB's investments in money market funds; (vi) AIIB's own borrowings; and (vii) derivatives associated with each of AIIB's borrowings, investment operations and treasury investments.

Net foreign exchange gain or loss reflects the change in value, due to movements in currency exchange rates, of financial instruments held by the Bank that are measured at amortized cost. For financial instruments held by the Bank measured at fair value through profit or loss, the change in value due to movements in currency exchange rates is reported as part of their overall change in fair value through profit or loss.

*Years Ended December 31, 2025 and 2024*. AIIB's net gain on financial instruments measured at fair value and foreign exchange increased to US$252.8 million for the year ended December 31, 2025 from US$227.6 million for the year ended December 31, 2024, mainly as a result of a net foreign exchange gain of US$658.5 million for the year ended December 31, 2025 compared to a net foreign exchange loss of US$290.8 million for the year ended December 31, 2024, which was partially offset by a net loss on financial instruments measured at fair value through profit or loss of US$405.8 million for the year ended December 31, 2025 compared to a net gain on financial instruments measured at fair value through profit or loss of US$518.4 million for the year ended December 31, 2024.

The net foreign exchange gain for the year ended December 31, 2025 was mainly due to foreign exchange gains on the Bank's portfolio of local currency-denominated loans due to the appreciation of the Euro and Russian ruble ("RUB") against the U.S. dollar and the impact such appreciation had on the U.S. dollar value of the Bank's portfolio of local currency-denominated loans. The net foreign exchange loss for the year ended December 31, 2024 was mainly due to foreign exchange losses on the Bank's portfolio of local currency-denominated loans due to the depreciation of the Euro and RUB against the U.S. dollar and the impact such depreciation had on the U.S. dollar value of the Bank's portfolio of loan currency-denominated loans, as well as foreign exchange losses due to the volatility of the Euro against the U.S. dollar and the impact of such movement on the U.S. dollar value of the Bank's issuances under its Euro Commercial Paper Programme.

The Bank uses derivatives to hedge foreign currency exposures arising mainly from its borrowing and lending activities; therefore, foreign exchange gains or losses may be partially offset by gains or losses on related derivatives.

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The net loss on financial instruments measured at fair value through profit or loss for the year ended December 31, 2025 was mainly due to net losses on the derivatives AIIB has entered into to hedge its investment operations and treasury investment portfolios, fair value losses on AIIB's own borrowings, determined on a net basis including fair value losses on those borrowings and fair value gains on the derivatives entered into to hedge those borrowings. These losses were partially offset by net gains on AIIB's investments in (i) debt securities managed in the Bank's treasury investment portfolio, including bond investments, commercial paper and certificates of deposit; (ii) portfolios of high credit quality securities managed by external asset managers engaged by AIIB, which are managed in the Bank's treasury investment portfolio; (iii) debt securities for infrastructure and development purposes managed in the Bank's investment operations portfolio; and (iv) AIIB's investments in money market funds. The net gain on financial instruments measured at fair value through profit or loss for the year ended December 31, 2024 was mainly due to net gains on (i) derivatives AIIB has entered into to hedge its loans and treasury investment portfolio; (ii) portfolios of high credit quality securities managed by external asset managers engaged by AIIB; (iii) debt securities for infrastructure and development purposes managed in the Bank's investment operations portfolio; (iv) AIIB's investments in money market funds; and (v) AIIB's investments with equity participation, which was offset in part by fair value losses on AIIB's borrowings, determined on a net basis including fair value losses on those borrowings and fair value gains on the derivatives entered into to hedge those borrowings.

***Net Loss on Financial Instruments Measured at Amortized Cost***

Net gain or loss on financial instruments measured at amortized cost reflects the change in amortized cost of (i) the Bank's treasury investments measured at amortized cost, which include investments in a fixed-income portfolio of high credit quality securities with a hold-to-maturity strategy, managed internally by AIIB, and a fixed-income portfolio of high credit quality securities with a hold-to-maturity strategy managed by an external asset manager engaged by AIIB, as well as (ii) investments in the Bank's investment operations portfolio that are measured at amortized cost, which include investments in a fixed-income portfolio that comprises, among others, Asian infrastructure-related bonds and other investments in debt securities through private placements.

*Years Ended December 31, 2025 and 2024.* AIIB's net loss on financial instruments measured at amortized cost was US$4.9 million for the year ended December 31, 2025 and US$0.2 million for the year ended December 31, 2024. The net loss for the year ended December 31, 2025 and the year ended December 31, 2024 mainly resulted from the disposal of certain bonds in the fixed-income portfolio that comprises, among others, Asian infrastructure-related bonds.

***Impairment Provision***

AIIB uses an expected credit loss ("ECL") model to estimate credit losses on financial assets, such as loan disbursements or bond investments, and on other instruments, such as undrawn loan commitments and issued guarantees. AIIB recognizes an ECL allowance at each reporting date and recognizes an impairment provision (either an impairment loss or the reversal of an impairment loss) that reflects the change in the ECL allowance between such reporting date and the previous reporting date. Impairment provisions are driven in large part by changes in loan volumes, risk parameters related to macroeconomic outlook and changes in AIIB's assessment of the credit risk of individual financings. See "Operations of AIIB–Quality of Financing Portfolio," "Risk Management–Risk Types–Credit Risk" and Notes B3.3.6, B5.1 and D3 to the 2025 Audited Financial Statements for further discussion of the Bank's credit quality analysis.

*Years Ended December 31, 2025 and 2024*. AIIB released an impairment provision of US$81.2 million for the year ended December 31, 2025, compared to an impairment provision of US$55.8 million that was released for the year ended December 31, 2024. The release of an impairment provision for the year ended December 31, 2025 was mainly due to reversal of ECL due to full repayment of a RUB-denominated non-sovereign backed loan at maturity, as well as an ECL reduction with respect to sovereign-backed loans as a result of credit improvement, which were partially offset by ECL increases in respect of certain non-sovereign backed loans.

The release of an impairment provision for the year ended December 31, 2024 was mainly due to revisions to AIIB's methodology for calculating ECL in respect of expected recoveries in the case of defaults of sovereign-backed loans beginning with the nine-month period ended September 30, 2024, as well as AIIB's full exit from a credit impaired loan, which were partially offset by ECL increases in respect of certain non-sovereign backed loans. AIIB has determined that if it had not made revisions to its methodology for calculating ECL in respect of expected recoveries in the case of defaults of sovereign-backed loans, ECL would have been approximately US$119 million higher as of September 30, 2024.

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See "Risk Management–Risk Types–Credit Risk" for further information, including regarding revisions during the nine months ended September 30, 2025 and the nine months ended September 30, 2024 to AIIB's methodology for calculating ECL.

***General and Administrative Expenses***

General and administrative expenses mainly consist of (i) staff costs, such as short-term employee benefits, including salaries, location premiums and medical and life insurance, and costs related to AIIB's defined contribution (i.e., retirement) plans; (ii) professional service expenses; (iii) IT services; (iv) facilities and administration expenses; (v) travel expenses; (vi) other expenses; and (vii) issuance cost in respect of borrowings.

*Years Ended December 31, 2025 and 2024.* AIIB's general and administrative expenses increased to US$303.7 million for the year ended December 31, 2025 from US$264.9 million for the year ended December 31, 2024, mainly due to increases in staff costs, facilities and administration expenses, and travel expenses. Mainly as the result of the continuing ramp-up of AIIB's organizational activities, staff costs increased to US$165.5 million for the year ended December 31, 2025 from US$138.1 million for the year ended December 31, 2024, facilities and administration expenses increased to US$19.8 million for the year ended December 31, 2025 from US$16.4 million for the year ended December 31, 2024, and travel expenses increased to US$18.1 million for the year ended December 31, 2025 from US$15.3 million for the year ended December 31, 2024.

***Operating Profit***

*Years Ended December 31, 2025 and 2024.* Mainly for the reasons set forth above, AIIB's operating profit decreased to US$923.1 million for the year ended December 31, 2025 from US$1,148.0 million for the year ended December 31, 2024.

***Accretion of Paid-in Capital Receivables***

Paid-in capital receivables represent amounts due from the Bank's members in respect of paid-in capital. These amounts are initially recognized at fair value, which reflects the discounted present value of future paid-in capital inflows, and subsequently measured at amortized cost. The difference between amortized cost and fair value is accounted for as a reserve under members' equity and is accreted through the income statement using the effective interest method.

*Years Ended December 31, 2025 and 2024.* AIIB's accretion of paid-in capital receivables decreased to US$0.3 million for the year ended December 31, 2025 from US$0.7 million for the year ended December 31, 2024. This decrease was mainly due to lower contractual balances in paid-in capital receivables as of January 1, 2025 compared to January 1, 2024.

***Other Comprehensive Income***

For financial liabilities, such as AIIB's borrowings, that are designated at fair value through profit or loss, fair value changes attributable to changes in AIIB's own credit risk are recognized in other comprehensive income (while other fair value changes are recognized under net gain or loss on financial instruments measured at fair value through profit or loss). Upon maturity of such financial liabilities, the recognition in other comprehensive income of fair value changes attributable to changes in AIIB's own credit risk is reversed.

*Years Ended December 31, 2025 and 2024.* AIIB experienced an unrealized gain on borrowings arising from changes in AIIB's own credit risk of US$79.1 million for the year ended December 31, 2025, compared to an unrealized loss of US$142.0 million for the year ended December 31, 2024. The unrealized gain on borrowings for the year ended December 31, 2025 was mainly the result of the widening of the Bank's Chinese yuan credit spread against the relevant benchmark discount curve and the unrealized loss on borrowings for the year ended December 31, 2024 was mainly the result of tightening of the Bank's overall credit spread against the relevant benchmark discount curves, particularly the U.S. dollar discount curve.

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***Total Comprehensive Income***

*Years Ended December 31, 2025 and 2024.* Mainly for the reasons set forth above, AIIB's total comprehensive income decreased to US$1,002.5 million for the year ended December 31, 2025 from US$1,006.7 million for the year ended December 31, 2024.

**Balance Sheet** 

***Assets***

Total assets mainly consist of (i) loan investments at amortized cost; (ii) investments at fair value through profit or loss managed in the Bank's treasury investment and investment operations portfolios; (iii) debt securities at amortized cost managed in the Bank's treasury investment and investment operations portfolios; (iv) cash and cash equivalents; (v) term deposits with initial maturities of more than three months; (vi) derivative assets; (vii) other assets, including receivables for unsettled trades (which are ordinary-course trades executed but not settled in advance of the reporting date), reverse repurchase agreements and cash collateral receivables; and (viii) paid-in capital receivables.

Investments at fair value through profit or loss mainly consist of (i) debt securities of high credit quality, such as bonds, certificates of deposit and commercial paper, which are mostly actively managed in the Bank's treasury investment portfolio; (ii) investments in portfolios of high credit quality securities managed by external asset managers engaged by AIIB, which are managed in the Bank's treasury investment portfolio; (iii) investments with equity participation, which are managed in the Bank's investment operations portfolio and include investments in limited partnership funds managed by general partners that make investment decisions on behalf of the limited partners of such funds, investments in venture capital associates and others; and (iv) a fixed-income portfolio managed in the Bank's investment operations portfolio by an external asset manager the primary objective of which is to develop climate bond markets in Asia and securities for infrastructure and development purposes in the Bank's investment operations portfolio. Debt securities at amortized cost consist of (i) a fixed-income portfolio of high credit quality securities with a hold-to-maturity strategy, managed internally by AIIB as part of the Bank's treasury investment portfolio; (ii) a fixed-income portfolio which comprises, among others, Asian infrastructure-related bonds and is managed in the Bank's investment operations portfolio; and (iii) a fixed-income portfolio of high credit quality securities with a hold-to-maturity strategy managed in the Bank's treasury investment portfolio by an external asset manager engaged by AIIB. Cash and cash equivalents consist of (i) term deposits with initial maturities of three months or less; (ii) money market funds; and (iii) demand deposits. Cash collateral receivables reflect the collateral paid to swap counterparties.

Assets of the Bank include high-quality liquid assets, which are defined as cash or assets that can be converted into cash at little or no loss in value.

*As of December 31, 2025 and 2024*. As of December 31, 2025, AIIB's total assets were US$64,660.0 million, compared to total assets of US$57,116.4 million as of December 31, 2024. This increase resulted mainly from (i) an increase of US$2,989.5 million in loan investments at amortized cost; (ii) an increase of US$2,676.3 million in term deposits with initial maturities of more than three months; (iii) an increase of US$1,372.5 million in cash and cash equivalents; (iv) an increase of US$561.7 million in investments measured at fair value through profit or loss, including an increase of US$340.4 million in investments at fair value through profit or loss managed in the Bank's investment operations portfolio and an increase of US$221.3 million in investments measured at fair value through profit or loss managed in the Bank's treasury investment portfolio; (v) an increase of US$480.6 million in derivative assets; and (vi) an increase of US$100.1 million in debt securities at amortized cost managed in the Bank's investment operations portfolio. The increase was partially offset by a decrease of US$551.5 million in debt securities at amortized cost managed in the Bank's treasury investment portfolio, mainly resulting from a decrease in the internally managed fixed income portfolio, and a decrease of US$72.9 million in other assets, mainly resulting from a decrease in cash collateral receivable.

***Liabilities***

Total liabilities mainly consist of (i) borrowings; (ii) other liabilities, such as cash collateral payable, payable for unsettled trades, bank overdrafts, accrued expenses, deferred interest, staff cost payable, and financial guarantee liabilities; and (iii) derivative liabilities.

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*As of December 31, 2025 and 2024*. As of December 31, 2025, AIIB's total liabilities were US$41,081.8 million, compared to total liabilities of US$34,658.9 million as of December 31, 2024. This increase resulted primarily from (i) an increase of US$6,115.6 million in borrowings (see "–Income Statement–Interest Expense") and (ii) an increase of US$641.4 million in other liabilities mainly associated with cash collateral payable, payable for unsettled trades and bank overdrafts, offset in part by a decrease of US$333.7 million in derivative liabilities.

***Members' Equity***

Members' equity consists of (i) paid-in capital; (ii) retained earnings; (iii) reserves for unrealized loss on borrowings measured at fair value attributable to changes in the Bank's own credit risk; and (iv) reserves for accretion of paid-in capital receivables.

*As of December 31, 2025 and 2024*. As of December 31, 2025, AIIB's total members' equity was US$23,578.2 million, compared to total members' equity of US$22,457.5 million as of December 31, 2024. This increase mainly resulted from an increase of US$923.1 million in retained earnings, an increase of US$118.9 million in paid-in capital and a decrease of US$79.1 million in reserves for unrealized loss on borrowings measured at fair value arising from changes in AIIB's own credit risk.

**Asset Quality** 

As of December 31, 2025, no AIIB assets were categorized as overdue or written off, except for (i) one bond investment measured at amortized cost that was assessed as credit impaired with a carrying amount of less than US$0.1 million (net of the associated ECL allowance); and (ii) US$204.0 million of overdue contractual undiscounted paid-in capital receivables, which are not considered impaired.

**Debt Record** 

AIIB has never defaulted on the payment of principal of, or premium or interest on, any debt obligation.

**External Auditor Work Papers** 

There has been a continued regulatory focus in the United States on potential restrictions under national law, in particular under Chinese law, on access to audit and other information. The Sarbanes-Oxley Act of 2002 directs the U.S. Public Company Accounting Oversight Board (the "PCAOB") to inspect PCAOB-registered public accounting firms in the United States and in other jurisdictions and authorizes the PCAOB to investigate certain potential violations by those firms and their associated persons. An inability of the PCAOB to conduct inspections in a jurisdiction would prevent the PCAOB from fully evaluating audits and quality control procedures of external auditors located in that jurisdiction, and investors in the securities of an issuer with an external auditor located in that jurisdiction would be deprived of the benefits of such PCAOB inspections. In particular, it would be more difficult to evaluate the effectiveness of the audit procedures or quality control procedures of an issuer's external auditor as compared to auditors in jurisdictions where the PCAOB may conduct inspections, and investors and potential investors in securities of an issuer could lose confidence in the issuer's audit procedures and financial information and the quality of its financial statements.

In December 2020, the U.S. Congress enacted the Holding Foreign Companies Accountable Act (the "HFCA Act"), which, as amended in December 2022, requires the U.S. Securities and Exchange Commission (the "SEC") to prohibit securities of certain issuers ("HFCA Act Covered Issuers") required to file reports under Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), from being listed on U.S. securities exchanges or traded "over-the-counter" if an issuer retains an accounting firm that cannot be inspected by the PCAOB for a period of two consecutive years. The Bank is not required to file reports under Section 13 or 15(d) of the Exchange Act and, therefore, is not an HFCA Act Covered Issuer.

Pursuant to SEC rules relating to the implementation of certain disclosure and documentation requirements of the HFCA Act, the SEC will identify as a "Commission-Identified Issuer" any HFCA Act Covered Issuer that has filed an annual report containing an audit report issued by a PCAOB-registered accounting firm that the PCAOB has determined it is unable to inspect or investigate completely because of a position taken by an authority in a foreign jurisdiction in which the accounting firm has a branch or office, and the SEC will impose a trading prohibition on an issuer after it is identified as a Commission-Identified Issuer for two consecutive years. The SEC made its first identifications of certain HFCA Act Covered Issuers as Commission-Identified Issuers in March 2022. Because the Bank is not an HFCA Act Covered Issuer, it cannot be identified as a Commission-Identified Issuer.

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In November 2021, the SEC approved PCAOB Rule 6100, which provides a framework for determinations by the PCAOB as to whether it is unable to inspect or investigate completely PCAOB-registered accounting firms headquartered in or with an office located in a foreign jurisdiction because of a position taken by one or more authorities in that jurisdiction. Pursuant to this rule, in December 2021, the PCAOB issued a report to notify the SEC of the PCAOB's determinations that, as a result of positions then taken by applicable authorities, it was unable to inspect or investigate completely PCAOB-registered accounting firms headquartered in China and Hong Kong, China. The Bank's external auditor, which is based in Hong Kong, China and is registered with the PCAOB, and the Chinese affiliate of the Bank's external auditor, which is also registered with the PCAOB, were each identified by the PCAOB at that time as subject to these determinations. The PCAOB's determinations included all PCAOB-registered accounting firms headquartered in China and Hong Kong, China and were therefore not limited to the Bank's external auditor and the Chinese affiliate of the Bank's external auditor.

On August 26, 2022, the PCAOB announced that it had signed a Statement of Protocol (the "Statement of Protocol") with the China Securities Regulatory Commission and the Ministry of Finance of China. According to the PCAOB, the terms of the Statement of Protocol would grant the PCAOB complete access to audit work papers and other information so that it may inspect and investigate PCAOB-registered accounting firms headquartered in China and Hong Kong, China.

On December 15, 2022, the PCAOB announced that it was able in 2022 to secure complete access to, and to inspect and investigate completely, PCAOB-registered public accounting firms headquartered in China and Hong Kong, China. The PCAOB vacated its determinations of December 2021 that the PCAOB was unable to inspect or investigate completely registered public accounting firms headquartered in China and Hong Kong, China. Whether the PCAOB will continue to be able to satisfactorily conduct inspections of PCAOB-registered public accounting firms headquartered in China and Hong Kong, China is, however, subject to uncertainty and depends on a number of factors out of the control of the Bank, the Bank's external auditor or the Chinese affiliate of the Bank's external auditor. In December 2022, the PCAOB announced that it was continuing to demand complete access in China and Hong Kong, China moving forward and was at that time making plans to resume regular inspections in early 2023 and beyond, as well as to continue pursuing ongoing investigations and to initiate new investigations as needed. The PCAOB has also announced that it will act immediately to consider the need to issue new determinations as appropriate under the HFCA Act and the PCAOB's rules. Under the PCAOB's rules, a reassessment of a determination under the HFCA Act may result in the PCAOB reaffirming, modifying or vacating the determination.

Separately from the Statement of Protocol, the Bank has engaged with the authorities of China, its host country, and received assurances from the Ministry of Finance of China that the authorities of China would not prevent the release of the Bank's external auditor work papers pertaining to the Bank if the SEC were to request them during the course of an SEC investigation.

**Related Party Transactions** 

The Bank generally considers parties to be related, including to the Bank, if the parties are under common control, or one party has the ability to control the other party or can exercise significant influence over the other party in making financial or operational decisions. In considering each possible related party relationship, attention is directed to the substance of the relationship, not merely to the legal form.

The Bank's related party transactions include the following as of December 31, 2025. For additional information with respect to AIIB's related party transactions, see Note C19 to the 2025 Audited Financial Statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In accordance with Article 5 of the Headquarters Agreement entered into between the government of China and
the Bank on January 16, 2016, the government of China provides a permanent office building to the Bank, free of charge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pursuant to a memorandum of understanding entered into between the municipality of Tianjin and the Bank in 2019,
in accordance with Article 5 of the Headquarters Agreement, the municipality of Tianjin provides a back-up business office in Tianjin to the Bank, free of charge. In March 2021, the municipality handed over
the back-up business office to the Bank.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Bank has outstanding loans under approved financings to the following non-sovereign borrowers that are ultimately controlled by state-owned enterprises of China: (i) a non-sovereign-backed financing to Zhanatas Wind-Power Station LLP
with an approved amount of US$46.7 million and an initial committed amount of US$34.3 million; (ii) a non-sovereign-backed financing to the Export-Import Bank of China with an approved amount of
US$200.0 million equivalent and an initial committed amount of US$202.0 million equivalent; (iii) a non-sovereign-backed financing to Dhaka RAD Elevated Expressway Company Limited with an
approved amount of US$75.0 million equivalent and an initial committed amount of US$65.0 million; and (iv) a non-sovereign-backed financing to Shokpar Wind-Power Station LLP with an approved
amount of US$40.0 million and an initial committed amount of US$36.0 million. These financings were entered into in the ordinary course of business under normal commercial terms and at market rates. For financings denominated in a currency
other than the U.S. dollar, differences between approved and initial committed amounts may be due in whole or in part to movements in currency exchange rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Bank has outstanding loans under the following approved sovereign-backed financings to China: (i) a
sovereign-backed financing with an approved amount and an initial committed amount of US$500.0 million equivalent to increase the availability of natural gas in order to reduce coal consumption and related emissions in the region of Beijing;
(ii) a sovereign-backed financing with an approved amount of US$355.0 million equivalent and an initial committed amount of US$350.0 million equivalent to strengthen China's public health infrastructure in combating the outbreak
of COVID-19; (iii) a sovereign-backed financing with an approved amount of US$300.0 million equivalent and an initial committed amount of US$274.9 million equivalent to improve cross-border
connectivity around Shuolong port and expand economic and trade activities between China and Viet Nam; (iv) a sovereign-backed financing with an approved amount of US$150.0 million equivalent and an initial committed amount of
US$146.3 million equivalent to improve cross-border connectivity around Zhengzhou and enhance rail freight transport efficiency between China and Europe and Central Asia; (v) a sovereign-backed financing with an approved amount of
US$1,000.0 million equivalent and an initial committed amount of US$954.9 million equivalent to support reconstruction projects in the municipalities of Zhengzhou, Xinxiang and Jiaozuo, in the province of Henan, in response to floods in
the region; (vi) a sovereign-backed financing with an approved amount of US$150.0 million equivalent and an initial committed amount of US$143.5 million equivalent to improve the quality and efficiency of public transport and the
urban environment in five small- and/or medium-sized cities in the province of Liaoning; (vii) a sovereign-backed financing with an approved amount of US$500.0 million equivalent and an initial
committed amount of US$472.6 million equivalent to support the expansion of Kunming Changshui Airport in the southwest province of Yunnan and improve connectivity between China and South-Eastern Asia; and (viii) a sovereign-backed
financing with an approved amount of US$400.0 million and an initial committed amount of US$396.3 million equivalent to facilitate cross-border trade and increase international air freight efficiency in Hubei, China. For financings denominated
in a currency other than the U.S. dollar, differences between approved and initial committed amounts may be due in whole or in part to movements in currency exchange rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Bank approved a US$75.0 million investment into the Asia Investment Limited Partnership Fund, a limited
partnership fund organized under the laws of Hong Kong, China, and subscribed to a limited partnership interest therein in November 2019. The fund's main investment objective is to acquire non-controlling equity stakes in mature companies in Asia or with significant operations in Asia in infrastructure or other productive sectors, including telecommunications, transportation and energy. Other
limited partners in the fund are the government of China and entities related to the government of China, including two state-owned asset management companies and a regulatory authority of one of China's special administrative regions. The
Bank will not take part in the management of the fund. Any future investments in the fund would be assessed in accordance with the Bank's general approval process for financings. See "Operations of AIIB–Financing Approval
Process."

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Bank approved a US$73.0 million investment in the Sustainable Energy Infra Trust, an entity incorporated
in India. The Bank invested into units of this entity which, as part of its investment strategy, will acquire eight pre-identified operational solar power assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Bank approved a US$54.0 million investment in Bayfront Infrastructure Management Pte. Ltd., an entity
incorporated in Singapore, and subscribed to preferred shares in this entity. The terms of such shares provide the Bank with 30% voting power (i.e., significant influence) over the financial and operating decisions of this entity's
governing body. As of December 31, 2025, the Bank held US$48.8 million of infrastructure asset-backed securities issued by this entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other liabilities of US$37.5 million that relate to interest rate buy-downs from the Special Fund Window (as defined below). See "Operations of AIIB–AIIB Special Funds–AIIB Special Fund Window for Less Developed Members."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other assets include a receivable from the Special Fund Window of US$0.1 million for the Bank's
administration fee. See "Operations of AIIB–AIIB Special Funds–AIIB Special Fund Window for Less Developed Members."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As of December 31, 2025, other liabilities include an amount of US$0.6 million in respect of compensation-related
accruals associated with key management personnel, recognized in accordance with the Bank's compensation framework and applicable accounting policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Bank had loans outstanding to two members of the Bank's senior management, Antoine Castel and Kaisu
Christie, which as of December 31, 2025 had an amount outstanding of US$57,488.3 and US$7,346.5, respectively.

**Recent Developments** 

***Change of AIIB's Independent Auditor***

AIIB's audited financial statements for the year ended December 31, 2025 are audited by AIIB's independent auditor PricewaterhouseCoopers. Starting from financial year 2026, Deloitte Touche Tohmatsu will be the Bank's independent auditor. The Bank's decision to rotate its independent auditor was not due to any adverse audit finding by PricewaterhouseCoopers or any disagreements with PricewaterhouseCoopers on any matter of accounting principles or practices, financial statements disclosure or auditing scope or procedures.

***AIIB Response to the War in Ukraine***

On March 3, 2022, in response to events taking place in Ukraine, the Bank announced it would place all activities relating to Russia and Belarus on hold and under review, including all Russia- and Belarus-related projects in the Bank's rolling investment pipeline. AIIB's exposure to Russia and to the RUB, including through its financing activities, borrowings and governance and administration, is limited, consisting of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Financing activities.* As of February 28, 2026, the Bank has no loans outstanding to borrowers in
Russia, and no exposure to Russia through its investments in funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Borrowings.* As of February 28, 2026, AIIB has no outstanding bonds denominated in RUB.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Governance and administration.* The Governor appointed by Russia to AIIB's Board of Governors is
currently a subject of sanctions imposed by the United States, European Union, United Kingdom and certain other jurisdictions. AIIB does not expect that these sanctions, or other sanctions that may be imposed on Governors or Directors of AIIB
appointed by Russia, would be reasonably likely to affect the Bank's operations. Neither AIIB's Governors nor its Directors have signing authority over the Bank's operations, and no individual Governor or Director has sole or
majority decision making power with respect to the Bank. One member of AIIB's senior management is a Russian national. This individual is not a subject of sanctions imposed by any jurisdiction.

------

AIIB does not have exposure to Belarus or the Belarussian ruble, other than with respect to the same governance matters and processes common to all non-regional members.

***Governor Appointed by Israel***

The Governor appointed by Israel to AIIB's Board of Governors is currently a subject of sanctions imposed by the United Kingdom and certain other jurisdictions. AIIB does not expect that these sanctions, or other sanctions that may be imposed on Governors or Directors of AIIB appointed by Israel, would be reasonably likely to affect the Bank's operations. Neither AIIB's Governors nor its Directors have signing authority over the Bank's operations, and no individual Governor or Director has sole or majority decision making power with respect to the Bank.

***Governor Appointed by Sudan***

The Governor appointed by Sudan to AIIB's Board of Governors is currently a subject of sanctions imposed by the United States. AIIB does not expect that these sanctions, or other sanctions that may be imposed on Governors or Directors of AIIB appointed by Sudan, would be reasonably likely to affect the Bank's operations. Neither AIIB's Governors nor its Directors have signing authority over the Bank's operations, and no individual Governor or Director has sole or majority decision making power with respect to the Bank.

------

**OPERATIONS OF AIIB** 

AIIB's mandate is to (i) foster sustainable economic development, create wealth and improve infrastructure connectivity in Asia by investing in infrastructure and other productive sectors and (ii) promote regional cooperation and partnership in addressing development challenges by working in close collaboration with other multilateral and bilateral development institutions. The Bank commenced operations on January 16, 2016 to help its members meet a substantial financing gap between the demand for infrastructure in Asia and available financial resources. The Bank aims to work with public and private sector partners to channel its own public resources, together with private and institutional funds, into sustainable infrastructure investment.

The Bank's mission is "Financing Infrastructure for Tomorrow," which reflects AIIB's commitment to sustainability, be it financial, economic, social or environmental in nature. The Bank has identified the following thematic priorities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Green Infrastructure: Prioritizing green infrastructure and supporting its members to meet their environmental
and development goals by financing projects that deliver local environmental improvements and investments dedicated to climate action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Connectivity and Regional Cooperation: Prioritizing projects that facilitate better domestic and cross-border
infrastructure connectivity within Asia and between Asia and the rest of the world, and supporting projects that complement cross-border infrastructure connectivity by generating direct measurable benefits in enhancing regional trade, investment and
digital and financial integration across Asian economies and beyond;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Technology-enabled Infrastructure: Supporting projects where the application of technology delivers better value,
quality, productivity, efficiency, resilience, sustainability, inclusion, transparency or better governance along the full project life cycle; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Private Capital Mobilization: Supporting projects that directly or indirectly mobilize private financing into
sectors within the Bank's mandate.

The Bank has developed, and continues to develop, a wide range of operational policies, strategies and frameworks designed to ensure that there is a direct link between the Bank's mandate, mission and thematic priorities and the projects it finances. Sustainable development is an integral part of the Bank's identification, preparation and implementation of projects. In April 2021, the Bank launched its "Sustainable Development Bond Framework" which, among other things, summarizes the Bank's sustainability commitments and the reporting that the Bank provides on its website concerning the environmental and/or social impacts of Bank financings. The Bank's Sustainable Development Bond Framework and, unless otherwise indicated, information available on, or accessible through, AIIB's website is not incorporated herein by reference.

**Ordinary Resources and Special Fund Resources** 

Operations of the Bank consist of ordinary operations financed from ordinary resources ("Ordinary Resources") and special operations financed from special fund resources ("Special Fund Resources").

Ordinary Resources include (i) the authorized capital stock of the Bank, comprising paid-in and callable shares of its members; (ii) funds raised by the Bank through borrowing or other means; (iii) funds received in the repayment of loans and guarantees, as returns on equity investments or from other types of financing as may be determined by the Board of Governors; (iv) income derived from loans or guarantees made from the above-mentioned funds; and (v) any other funds or income received from the Bank which are not Special Fund Resources.

Special Fund Resources are (i) funds accepted by the Bank for inclusion in any special fund (a "Special Fund"); (ii) funds received in respect of loans or guarantees and proceeds of any equity investments financed from the resources of a Special Fund; (iii) income derived from the investment of resources of a Special Fund; and (iv) any other resources placed at the disposal of a Special Fund. Special Funds must serve the purpose and come within the functions of the Bank and may only be used under terms and conditions consistent with such. Ordinary Resources and Special Fund Resources may separately finance elements of the same project or program. The two types of resources, however, must be held, used, committed, invested or otherwise disposed of entirely separately from each other. In no circumstances may Ordinary Resources be charged with, or used to discharge, losses or liabilities arising out of Special Fund Resources. The Bank must adopt special rules and regulations for the establishment, administration and use of each Special Fund.

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As of December 31, 2025, the Bank has three internal Special Funds: the AIIB Project Preparation Special Fund (the "Project Preparation Special Fund"), the AIIB Special Fund Window for Less Developed Members (the "Special Fund Window") and the AIIB Project-Specific Window (the "Project-Specific Window"). See "–AIIB Special Funds." In addition, the Bank manages four external Special Funds, which are considered to be Special Fund Resources received by the Bank in its role as implementing entity of multilateral partnership facilities: the MCDF, the Global Infrastructure Facility ("GIF"), the Pandemic Prevention, Preparedness and Response Trust Fund (the "Pandemic Fund") and the Green Climate Fund ("GCF"). See "–External Special Funds."

**Financial Instruments** 

To implement the Bank's purpose, the Bank may provide or facilitate financing to any member, or any agency, instrumentality or political subdivision of a member, or any entity operating in the territory of a member, as well as to international or regional agencies or entities concerned with economic development of Asia. In limited circumstances, and subject to a Super Majority Vote (see "Governance and Administration–Board of Governors"), the Bank may also provide assistance to other recipients, provided such assistance (i) serves the purpose and comes within the functions of the Bank and is in the interest of the Bank's membership and (ii) is of a type of assistance that the Bank is permitted to provide pursuant to Article 11(2) of the Articles of Agreement.

The Bank may offer a range of financial products, including loans, equity investments and guarantees of loans for economic development (either as primary or secondary obligor). The Bank may also deploy Special Fund Resources (see "–Ordinary Resources and Special Fund Resources"), technical assistance and other types of financing as may be determined by the Board of Governors.

For the Bank to agree to provide financing, the project in question must meet a variety of conditions, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• it must have clearly defined development objectives consistent with the Bank's purpose that permit
appropriate evaluation of the project's impact;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• it must provide for specific productive activities necessary to meet these development objectives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• alternative sources of finance, in particular private capital, must be unavailable for the project on terms and
conditions that the Bank considers reasonable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• it must be in compliance with all applicable Bank policies.

***Sovereign-backed Financing***

Sovereign-backed financing refers to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a loan to, or guaranteed by, a member of AIIB; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a guarantee that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) covers debt service defaults under a loan that are caused by a government's failure to meet a specific obligation in relation to a project or by a borrower's failure to make a payment under the loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) is accompanied by a counter-guarantee and indemnity provided by the AIIB member in whose territory the relevant project is located, in connection with such guarantee.

Sovereign-backed financings are subject to general terms and conditions that generally are uniform across all sovereign-backed borrowers.

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For sovereign-backed loans, these terms and conditions include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all loans are denominated in U.S. dollars or in such other currency or currencies as the Bank may offer from time
to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pricing comprises the interest rate, front-end fee and commitment fee.
For fixed-spread loans, the interest rate consists of a market-based reference rate and a fixed spread equal to a contractual lending spread, the Bank's projected funding costs over the life of the loan and a market risk premium. For
variable-spread loans, the interest rate consists of a market-based reference rate and a variable spread equal to a contractual lending spread and an actual funding cost margin. For both types of loans, depending on the maturity of the loan, a
maturity premium may also be charged;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all loans must have a weighted average maturity of no more than 20 years and a final maturity of no more than 35
years;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each loan that is not made to a member of the Bank must be secured by a guarantee from the relevant member. The
Bank generally does not require other credit enhancements, such as security arrangements, with respect to sovereign-backed loans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all loans are governed by AIIB's general terms and conditions that include, among other things, standard
acceleration clauses that authorize the Bank, upon clearly defined events of default, to cancel the loan and/or declare payable all or part of amounts due under the loan. AIIB's general terms and conditions for sovereign-backed loans do not
include confidentiality clauses.

Sovereign-backed guarantees include the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all guarantees are denominated in U.S. dollars or in such other currency or currencies as the Bank may offer from
time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all guarantees must have a weighted average maturity of no more than 20 years and a final maturity of no more
than 35 years (unless the Board of Directors determines otherwise);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pricing consists of three fees: (i) a standby (i.e., commitment) fee; (ii) a guarantee fee equal to the
contractual lending spread and, if applicable, a maturity premium; and (iii) a front-end fee charged based on the maximum amount of the guarantee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Bank may also charge a processing charge, as appropriate, to cover its internal and external processing
costs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the member in whose territory the project is located or for whose benefit the guarantee is made is required to
indemnify the Bank for any payments the Bank makes under the guarantee and for all liabilities and expenses the Bank incurs in connection with the guarantee.

The Bank may make an advance (a "Preparation Advance") to finance preparatory activities for a project to be supported by a sovereign-backed financing. A Preparation Advance is made only when there is a strong probability that the financing for which it is granted will be extended. Granting a Preparation Advance does not obligate the Bank to finance or otherwise support the project in question. The maximum aggregate principal amount of all approved Preparation Advances for any given project may not exceed the lesser of: (i) 10% of the total estimated amount of financing for the project or (ii) US$10.0 million equivalent. The President decides whether to approve each Preparation Advance.

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***Non-sovereign-backed Financing***

Non-sovereign-backed financing means any financing to, or for the benefit of, a private enterprise or a sub-sovereign entity (such as a political or administrative sub-division of an AIIB member or a public sector entity) that is not backed by a guarantee or counter-guarantee and indemnity provided by a member to the Bank.

Non-sovereign-backed financings may take the form of loans, guarantees, credit lines to financial intermediaries, direct equity investments or indirect equity investments. The Bank may finance out of its own funds generally no more than 35% of the project's value (including interest during construction). On an exceptional basis, if co-financing is unavailable, the Board of Directors may decide to approve a higher level of financing for the project.

Non-sovereign-backed financings are subject to terms and conditions that are set in accordance with market-based principles. Pricing is based on several factors, including (i) the intrinsic and macroeconomic risks of the project; (ii) the cost of funds to the Bank; and (iii) the need to earn an appropriate return on the Bank's capital, including on funds invested in direct and indirect equity of private entities.

The Bank may offer a range of options and features to meet the specific needs of the project.

***Non-sovereign-backed Loans and Guarantees; Credit Lines to Financial Intermediaries***

Non-sovereign-backed loans may be offered on a limited recourse basis, backed only by the existing and future cash flows and assets of the beneficiary of the project. The Bank may also extend non-sovereign-backed loans with the credit support of a third party; for example, the Bank may have recourse to designated assets or the balance sheet of the sponsor of the project or to a bank guarantee. Non-sovereign-backed loans are typically extended as senior loans and may require certain credit enhancements, such as guarantees or security arrangements, to the extent determined appropriate by the Bank. Security arrangements may include, among other things, charges over project assets, securities or cash deposits. Subject to appropriate pricing, the Bank may also extend loans that are subordinated to the prior payment of other debt of the beneficiary of the project or subordinated in repayment in the event of the beneficiary's bankruptcy (or both). The Bank may provide non-sovereign-backed loans in the form of loan participations or loan syndications. In a loan participation, while remaining the lender of record for the full amount of the loan, the Bank transfers full commercial and business risk with respect to a part of the amount to other lenders, allowing them to partially finance the loan. In a loan syndication, the Bank joins a syndicate of commercial banks, whereby the Bank and other members of the syndicate undertake to lend specified portions of the total loan amount. The Bank may also offer non-sovereign-backed guarantees against default regardless of the cause or against default arising from specified events.

Non-sovereign-backed loans and guarantees are denominated in U.S. dollars or in such other currency or currencies as the Bank may offer from time to time. The Bank charges front-end fees, commitment fees (or standby fees in respect of guarantees) and fees for appraisal, prepayment, syndication or activities and services related to the financing (or guarantee fees in respect of guarantees), all typically at prevailing market rates. Unless the Board of Directors determines otherwise, the final maturity of a non-sovereign-backed loan must not exceed 18 years. Non-sovereign-backed loans are issued pursuant to market-standard documentation that includes, among other things, standard acceleration clauses that authorize the Bank, upon clearly defined events of default, to cancel the loan and/or declare payable all or part of amounts due under the loan and standard confidentiality clauses that are applicable to the Bank and the borrower.

The Bank may also extend credit lines to financial intermediaries for on-lending in respect of projects that otherwise meet the Bank's eligibility requirements for direct financings. In these cases, the Bank's recourse is typically to the balance sheet of the financial intermediary, but the Bank may also require an assignment, by way of security, of the sub-loans granted by the financial intermediary.

***Equity Investments***

The Bank may make direct equity investments in private or public sector companies. It may invest either in a new enterprise or an existing enterprise. The investment may take a variety of forms, including subscriptions to ordinary shares or preference shares (or a combination of both) or a loan convertible into equity.

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The Bank's investment generally may not exceed 30% of the company's ownership holdings. In exceptional circumstances, the Board of Directors may decide to approve a higher, but not controlling, share or (if the Bank's investment is in jeopardy) the Bank may take control of the company in order to safeguard its investment.

The Bank may also selectively make equity investments through financial intermediaries, such as equity funds, choosing those managed by professional managers with relevant track records and remuneration arrangements in line with market practices.

In both direct and indirect equity investments, the Bank seeks credible exit strategies.

**Financing Portfolio** 

As of December 31, 2025, the Bank has approved 360 financings (including 286 loans, 37 investments in funds, five equity financings, 27 investments in fixed-income securities and five guarantees) with a total amount of US$69.469.6 million. This amount includes financings approved as of December 31, 2023 under the COVID-19 Crisis Recovery Facility (the "CRF"). Of these financings, 266 were approved by the Board of Directors with a total approved amount of US$57,532.2 million, and 94 were approved by the President, pursuant to his delegated authority to approve certain financings, with a total approved amount of US$11,937.4 million. Of the approved financings, the Bank has terminated or cancelled 17 financings. Of the 17 terminated or cancelled financings, 13 were loans with a total amount of US$1,510.5 million, three were investments in funds with a total amount of US$220.0 million and one was a fixed-income investment with a total amount of US$95.0 million. In addition, of the approved financings, 46 financings (45 loans with a total amount of US$10,923.7 million and a fixed-income investment with a total amount of US$80.0 million) have matured or were otherwise completed and are no longer outstanding.

As of December 31, 2025, the aggregate amount of approved loans, excluding terminated, cancelled, matured or completed loans, totaled US$48,142.6 million, of which US$17,349.0 million were undrawn commitment amounts and US$29,550.4 million were outstanding amounts. In respect of a loan approved by the Bank, undrawn commitment amounts are amounts that the Bank is obligated to provide under legally binding documentation, that the Bank has not yet disbursed and that the Bank does not have full discretion to decline to disburse. Outstanding amounts and undrawn commitment amounts as of December 31, 2025 included in the text of this section are on a cash basis. Outstanding amounts included in the tables below represent the gross carrying amount of the loans (i.e., including the transaction costs and fees that are capitalized through the effective interest method). Of all approved loans as of December 31, 2025, excluding terminated, cancelled, matured or completed loans, 159 were sovereign-backed loans, 69 were non-sovereign-backed loans and 117 were co-financings led by another MDB.

As of December 31, 2025, approved investments in funds, excluding terminated or cancelled investments, totaled US$3,175.5 million, of which US$1,124.0 million was outstanding.

As of December 31, 2025, approved equity financings totaled US$280.0 million, of which US$223.9 million was outstanding.

As of December 31, 2025, approved investments in fixed-income securities, excluding terminated, cancelled, matured or completed investments, totaled US$3,417.3 million, of which US$1,603.3 million was outstanding.

As of December 31, 2025, the approved guarantees totaled US$1,625.0 million, of which no amount was outstanding.

As of December 31, 2025, approved financings (including approved financings under the CRF) span a broad range of sectors, including energy, digital infrastructure and technology, transport, urban, water, education infrastructure, economic resilience/policy-based financing (CRF), public health (CRF), finance/liquidity (CRF), rural infrastructure and agricultural development, health infrastructure and other and, excluding multi-country financings (discussed below), would fund projects in the following members: Argentina; Azerbaijan; Bangladesh; Benin; Brazil; Cambodia; China; Cook Islands; Côte d'Ivoire; Ecuador; Egypt; Fiji; Georgia; Hong Kong, China; Hungary; India; Indonesia; Jordan; Kazakhstan; Kyrgyzstan; Lao PDR; Maldives; Mongolia; Morocco; Myanmar; Nepal; Oman; Pakistan; Philippines; Romania; Russia (as described under "Management's Discussion and Analysis of Financial Condition and Results of Operations–Recent Developments–AIIB Response to the War in Ukraine," all activities relating to Russia and Belarus are currently on hold and under review); Rwanda; Saudi Arabia; Singapore; Sri Lanka; Tajikistan; Thailand; Türkiye; Uzbekistan; and Viet Nam. As of December 31, 2025, of the approved financings (excluding terminated or cancelled financings), 30 (23 investments in funds, four investments in fixed-income securities, one loan and two guarantees) were classified as multi-country financings.

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***Loan and Guarantee Geographic Distribution***

The following table sets forth AIIB's loan and guarantee portfolio classified by geographic distribution:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Amount (in**<br>**millions of**<br>**US$)<sup>(1)</sup>** | **As a**<br>**percentage of**<br>**total loan<br>and**<br>**guarantee**<br>**portfolio** | **Amount (in**<br>**millions of**<br>**US$)<sup>(1)</sup>** | **As a**<br>**percentage of**<br>**total loan and<br>guarantee**<br>**portfolio** |
| Undrawn Commitment Amounts<sup>(2)</sup> |  |  |  |  |
|  Central Asia | 1624.0 | 9% | 1380.1 | 10% |
|  Eastern Asia | 1638.8 | 9% | 1495.5 | 10% |
|  South-Eastern Asia | 3854.5 | 21% | 2582.2 | 18% |
|  Southern Asia | 6455.5 | 35% | 5799.0 | 40% |
|  Western Asia | 3082.4 | 17% | 1446.7 | 10% |
|  Oceania |  | 0% |  | 0% |
|  Other Regional |  | 0% |  | 0% |
|  Non-Regional | 1940.4 | 10% | 1645.7 | 11% |
|  **Total Undrawn Commitment** | **18595.6** | **100%** | **14349.2** | **100%** |
| Outstanding Amounts<sup>(3)</sup> |  |  |  |  |
|  Central Asia | 3687.7 | 12% | 2868.8 | 11% |
|  Eastern Asia | 2080.9 | 7% | 1908.5 | 7% |
|  South-Eastern Asia | 7114.6 | 24% | 6763.3 | 25% |
|  Southern Asia | 10840.4 | 36% | 9552.0 | 36% |
|  Western Asia | 4378.0 | 15% | 4282.6 | 16% |
|  Oceania | 85.4 | 0% | 110.4 | 0% |
|  Other Regional |  | 0% | 220.6 | 1% |
|  Non-Regional | 1561.4 | 5% | 1129.0 | 4% |
|  **Total Outstanding** | **29748.4** | **100%** | **26835.3** | **100%** |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The amounts set forth in this table include both sovereign-backed and non-sovereign-backed loans and undrawn commitment amounts for guarantees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Undrawn commitment amounts are amounts that the Bank is obligated to provide under legally binding
documentation, that the Bank has not yet disbursed and that the Bank does not have full discretion to decline to disburse.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Outstanding amounts represent the gross carrying amount of the loans. As of December 31, 2025 and
December 31, 2024, AIIB had no amounts outstanding under the guarantees.

***Loans and Guarantees by Sector***

AIIB classifies its financings by sector and subsector. AIIB has developed the methodology for classifying loans and guarantees by sector and subsector based on AIIB's current and upcoming business focus, which reflects AIIB's mission of "Financing Infrastructure for Tomorrow," as well as sector and non-sector strategies. The classifications were also developed by reference to sector taxonomies developed by other MDBs. AIIB recognizes that the sectors and subsectors in its classification methodology may be cross-cutting. As a result, although the classification methodology has been developed to provide a consistent approach to classifying financings, AIIB may exercise discretion in determining how to classify certain financings, including projects that may relate to more than one sector or be in new business areas. AIIB periodically reviews its classification methodology to enable it to continue to reflect AIIB's priorities.

AIIB classifies its financings into 13 sectors: energy, digital infrastructure and technology, transport, urban, water, health infrastructure, education infrastructure, economic resilience/policy-based financing (CRF), public health (CRF), finance/liquidity (CRF), rural infrastructure and agricultural development, other productive sectors and other. AIIB may also classify a financing as multisector.

Financings in the energy sector mainly relate to (i) conventional energy generation; (ii) renewable energy generation, including solar, wind, hydropower, geothermal, biomass and waste, as well as hybrid forms that combine energy storage and/or multiple renewable energy generation technologies; (iii) electricity transmission and distribution; (iv) energy storage; (v) hydrogen production and transportation; (vi) gas processing, storage, transportation and distribution; (vii) district heating and cooling networks; and (viii) energy efficiency and demand-side management.

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Financings in the digital infrastructure and technology sector mainly relate to digital infrastructure and technology that is applicable to infrastructure, and include projects to support (i) connectivity; (ii) data processing and storage; (iii) development of new software and applications; and (iv) interfaces between users, digital services and applications through terminals and devices.

Financings in the transport sector mainly relate to (i) road connectivity and safety; (ii) railway projects; (iii) port and other waterway infrastructure; (iv) aviation; (v) urban transportation; and (vi) other issues related to transport logistics.

Financings in the urban sector mainly relate to (i) urban re-development; (ii) affordable housing; (iii) projects for the improvement of urban public services, such as street lighting, park facilities and digital public service delivery portals; (iv) integrated waste management; (v) renovation and protection of cultural heritage; (vi) urban tourism; (vii) urban resilience in the form of systems or facilities that enable cities to maintain continuity during shocks and stress; and (viii) urban integrated development in the form of multisectoral urban or suburban development initiatives, such as industrial parks, special economic zones, commercial business districts, new district development and satellite cities.

Financings in the water sector mainly relate to (i) water supply, sanitation and wastewater treatment; (ii) irrigation and drainage; (iii) water resources management; and (iv) water disaster resilience.

Financings in the health infrastructure sector mainly relate to (i) the construction, rehabilitation, upgrade and expansion of health care facilities; (ii) the digitalization of health care service; (iii) the improvement of energy efficiency and (iv) the improvement of vaccine-manufacturing processes.

Financings in the education infrastructure sector mainly relate to (i) the construction, rehabilitation, upgrade and expansion of educational facilities and (ii) the development of the digital infrastructure of schools.

The economic resilience/policy-based financing, public health and finance/liquidity sectors represent financings under the CRF. Economic resilience/policy-based financings are designed to supplement government measures supporting the social and economic response and recovery efforts (including infrastructure investments and investments in social and economic protection measures to prevent long-term damage to the productive capacity of the economy and to protect and restore productive capital) in cases such as the COVID-19 pandemic. Financings in the public health sector are designed to address immediate health care sector needs (including support for emergency public health responses and for the long-term sustainable development of the health care sector). Financings in the finance/liquidity sector mainly relate to (i) capital markets transactions; (ii) loans to financial institutions; and (iii) investment funds transactions.

Financings in the rural infrastructure and agricultural development sector mainly relate to (i) land conservation and soil management and (ii) the support of rural market infrastructure.

Financings in other productive sectors mainly relate to projects that support industry, non-urban tourism and agricultural production.

Financings in other sectors include projects that support disaster prevention and rehabilitation.

------

The following table sets forth AIIB's loan and guarantee portfolio by sector, as classified by AIIB in accordance with the methodology described above:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2024** | **As of December 31, 2024** |
|  | **Amount (in**<br>**millions of**<br>**US$)<sup>(1)</sup>** | **As a**<br>**percentage of**<br>**total loan<br>and guarantee**<br>**portfolio** | **Amount (in**<br>**millions of**<br>**US$)<sup>(1)</sup>** | **As a**<br>**percentage of**<br>**total loan and<br>guarantee**<br>**portfolio** |
| Undrawn Commitment Amounts<sup>(2)</sup> |  |  |  |  |
|  Energy | 3461.8 | 19% | 2710.9 | 19% |
|  Digital Infrastructure and Technology | 57.7 | 0% |  | 0% |
|  Transport | 7164.2 | 39% | 5177.0 | 36% |
|  Urban | 1066.8 | 6% | 879.0 | 6% |
|  Water | 2420.3 | 13% | 2306.4 | 16% |
|  Health Infrastructure | 1440.8 | 8% | 1118.2 | 8% |
|  Education Infrastructure | 70.3 | 0% | 175.9 | 1% |
|  Economic Resilience/PBF<sup>(3)</sup> (CRF) | 272.2 | 1% | 291.8 | 2% |
|  Public Health (CRF) | 86.1 | 0% | 165.8 | 1% |
|  Finance/Liquidity (CRF) |  | 0% | 3.8 | 0% |
|  Rural Infrastructure and Agricultural Development | 10.1 | 0% | 36.6 | 0% |
|  Other Productive Sectors |  | 0% |  | 0% |
|  Other | 307.5 | 2% | 10.5 | 0% |
|  Multisector | 2238.0 | 12% | 1473.3 | 10% |
|  **Total Undrawn Commitment** | **18595.6** | **100%** | **14349.2** | **100%** |
| Outstanding Amounts<sup>(4)</sup> |  |  |  |  |
|  Energy | 4519.1 | 15% | 3500.7 | 13% |
|  Digital Infrastructure and Technology | 166.4 | 1% | 140.8 | 1% |
|  Transport | 4321.0 | 15% | 3172.3 | 12% |
|  Urban | 1534.9 | 5% | 1202.2 | 4% |
|  Water | 1793.4 | 6% | 1516.9 | 6% |
|  Health Infrastructure | 42.7 | 0% | (1.1) | 0% |
|  Education Infrastructure | 261.7 | 1% | 152.7 | 1% |
|  Economic Resilience/PBF(CRF) | 10943.4 | 37% | 11197.0 | 42% |
|  Public Health (CRF) | 3219.0 | 11% | 3151.5 | 12% |
|  Finance/Liquidity (CRF) | 671.3 | 2% | 1376.9 | 5% |
|  Rural Infrastructure and Agricultural Development | 70.1 | 0% | 45.7 | 0% |
|  Other Productive Sectors |  | 0% |  | 0% |
|  Other | 811.4 | 3% | 407.1 | 2% |
|  Multisector | 1393.8 | 5% | 972.8 | 4% |
|  **Total Outstanding** | **29748.4** | **100%** | **26835.3** | **100%** |

---

Notes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The amounts set forth in this table include both sovereign-backed and non-sovereign-backed loans and undrawn commitment amounts for guarantees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Undrawn commitment amounts are amounts that the Bank is obligated to provide under legally binding
documentation, that the Bank has not yet disbursed and that the Bank does not have full discretion to decline to disburse.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) PBF refers to policy-based extension financing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Outstanding amounts represent the gross carrying amount of the loans. As of December 31, 2025, AIIB had no
amounts outstanding under the guarantees.

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***Loan and Guarantee Maturity***

As of December 31, 2025, based on the final repayment date of the loans and the expiry date of guarantees, US$3,455.9 million of AIIB's undrawn loan and guarantee commitment amounts and outstanding loan amounts are scheduled to mature through 2030, US$22,274.3 million is scheduled to mature in 2031-2041 and US$22,613.8 million is scheduled to mature from 2042 onwards.

***Ten Largest Obligors***

The following table sets forth the aggregate principal amount of loans and guarantees (reflecting undrawn loan and guarantee commitment amounts and outstanding loan amounts) to AIIB's ten largest obligors, determined based on undrawn commitment and outstanding amounts for both sovereign-backed and non-sovereign-backed loans and undrawn commitment amounts for guarantees, as of December 31, 2025:

---

| | | |
|:---|:---|:---|
| **Obligor** | **Amount (in**<br>**millions of**<br>**US$)** | **As a percentage<br>of total loan and<br>guarantee portfolio** |
|  Republic of India | 9182.6 | 19% |
|  Republic of Indonesia | 5525.8 | 11% |
|  Republic of Türkiye | 4645.0 | 10% |
|  People's Republic of Bangladesh | 4052.8 | 8% |
|  Republic of the Philippines | 3929.5 | 8% |
|  People's Republic of China | 3064.2 | 6% |
|  Republic of Uzbekistan | 2978.1 | 6% |
|  Islamic Republic of Pakistan | 2694.5 | 6% |
|  Arab Republic of Egypt | 1415.9 | 3% |
|  Republic of Kazakhstan | 974.7 | 2% |

---

**Proposed Financings** 

As of December 31, 2025, the Bank has 147 proposed financings in the rolling investment pipeline for 2026-2027. The rolling investment pipeline includes all proposed financings for the next 24 months (updated on a rolling basis) that have passed project screening review, have subsequently been approved for inclusion into the pipeline and have not subsequently been put on hold or otherwise removed from the rolling investment pipeline. See "–Financing Approval Process–Non-sovereign-backed Financings–Project Screening Review."

As of December 31, 2025, the proposed financings span a broad range of sectors, including energy, digital infrastructure and technology, education infrastructure, health infrastructure, transport, urban, water, rural infrastructure and agriculture development, and other, and, excluding multi-country financings (discussed below), would fund projects in the following members: Algeria, Azerbaijan, Bahrain, Bangladesh, Brazil, Cambodia, Chile, China, Côte d'Ivoire, Egypt, El Salvador, Ethiopia, Fiji, Georgia, India, Indonesia, Iraq, Jordan, Kazakhstan, Kenya, Madagascar, Malaysia, Mongolia, Morocco, Nepal, Pakistan, Papua New Guinea, Peru, Philippines, Qatar, Rwanda, Senegal, Singapore, South Africa, Sri Lanka, Thailand, Togo, Türkiye, UAE, Uzbekistan and Viet Nam. As of December 31, 2025, of the proposed financings, 14 (three loans, five investments in funds, three investment in fixed-income securities, two equity financings and one guarantee) were classified as multi-country financings.

**Financing Approval Process** 

The Bank's financing process is guided by the Bank's mandate, mission and thematic priorities of green infrastructure, connectivity and regional cooperation, technology-enabled infrastructure and private capital mobilization. The Bank reviews financing proposals, seeking to achieve an appropriate balance among sectors, sovereign-backed and non-sovereign-backed financings and beneficiaries. The Bank's Environmental and Social Framework is integral to the decision-making process on all projects. See "–Environmental and Social Framework."

***Non-sovereign-backed Financings***

The approval process for non-sovereign-backed financings is described below. This approval process may be modified in certain circumstances, including to simplify the approval process for straightforward low- or medium-risk financings that are deemed well prepared prior to concept review or for follow-on or repeat financings or to test modifications to the approval process to determine whether it would be appropriate to make updates or other changes to the approval process.

------

*Project Screening Review* 

The Bank receives financing ideas and proposals from a variety of entities, including project sponsors, commercial banks, government entities and development partners. Each proposed financing undergoes preliminary project review screening to determine if it aligns strategically with the Bank's purposes and priorities. At this stage, the Bank performs an initial integrity check on the sponsor(s) and beneficiary. If the proposed financing passes initial screening, it is included in the Bank's rolling investment pipeline. See "–Proposed Financings."

*Assessment Prior to Concept Review* 

At this stage, further information is gathered about key aspects of the proposed financing in order to form a judgment on whether the proposed financing broadly meets the Bank's operating principles and warrants dedicating significant resources to its preparation. Additional integrity and compliance checks, as well as initial environmental and social due diligence, are carried out prior to concept review.

*Concept Review* 

A concept review is held before significant resources are spent on preparation of the financing. The purposes of the concept review are to (i) confirm that the proposed financing broadly fits within the purposes, policies, strategies and priorities of the Bank; (ii) assess whether the project merits the Bank's investment of time and resources; (iii) assess and authorize the initial resource requirements for the proposed financing; (iv) discuss possible modifications to the proposed financing to enhance its contribution to the Bank's objectives; and (v) agree on the key issues to be addressed and the approach to resolving them.

For the concept review, a concept review project document is prepared and submitted to the Investment Committee. This concept review project document includes, among other things, the following information: (i) a summary of key financing terms; (ii) a description of the underlying project, including use of proceeds of the proposed financing; (iii) brief information on the beneficiary and sponsors, including the results of the initial integrity check; (iv) a rationale for the Bank's involvement in the proposed financing; (v) a risk assessment of the proposed financing (including an indicative risk rating, economic capital and risk-weighted return on capital of the proposed financing); (vi) an assessment of necessary funding or hedging arrangements or of any other funding issues; (vii) a preliminary analysis on the potential environmental and social impact of the proposed financing; (viii) a summary of key project issues; and (ix) a timetable for next steps. At this stage, the Bank assesses the extent to which the financing involves an international waterway, a disputed area or a de facto government (as such terms are used in the Bank's Operational Policy on International Relations).

*Comprehensive Due Diligence Assessment* 

If the proposal passes concept review, the Bank's team in charge of the proposed financing conducts a comprehensive assessment that is designed to inform the Bank of the following: (i) the technical and financial aspects of the proposed financing; (ii) the creditworthiness of the beneficiary and the sponsors; (iii) the environmental and social risks and potential impact of the proposed financing; (iv) any issues in connection with procurement, legal and reputational concerns; and (v) other relevant characteristics of the proposed financing. As part of this assessment, the Bank carries out a detailed financial and risk analysis of the proposed financing, as well as continues its integrity due diligence. Integrity due diligence includes gathering information with respect to the beneficiary and the sponsors, such as their corporate governance structure, beneficial ownership, financial transparency and strength, compliance and integrity, including in relation to tax matters, and any sanctions concerns.

After sufficient due diligence has been completed, the Bank begins work on a term sheet (or other document serving the same purpose as a term sheet), which later forms the basis for drafting the financing agreements.

------

*Interim Review* 

In case of significant new developments or complex issues, the Investment Committee may require an interim review before preparation of the financing may advance further.

*Final Review* 

The purposes of final review are for the Investment Committee to (i) assess, based on the final review project document, whether to recommend approval of the proposed financing and on what conditions, and (ii) authorize documentation of the deal (if approval is recommended). The final review project document contains, among other things, a discussion of new issues arising after the last review and changes to business terms and the financial model and negotiated term sheet.

*Approval and Preparation of Documentation* 

If the proposed financing passes the final review, it undergoes a policy assurance review by the Bank's Policy and Strategy department. Typically, no later than one working day after passing final review, a project summary information document is prepared and (subject to certain limited exceptions) disclosed. At the same time, and prior to approval, the Bank seeks to confirm that there are no objections from the member in whose jurisdiction the underlying project is to be carried out.

At this stage, an approval document is prepared and, upon the President's recommendation, submitted to the Board of Directors for approval of the proposed financing (subject to the President's delegated authority to approve certain projects, as discussed hereafter). The Board of Directors has delegated authority to the President of the Bank, in his capacity as head of Bank management, to approve certain financings. This delegation is subject to limits based on the precedent-setting nature of the financing, the existence of significant strategy or policy issues and established risk tolerance. Any single Director may also require review by the Board of Directors of the financing. The Board of Directors undertakes periodic review of the President's use of his delegated authority.

Following such approval, the legal documentation for the financing is prepared, negotiated and signed. Effectiveness of the financing is subject to the satisfaction of all conditions precedent.

*Project Implementation and Monitoring* 

Project implementation and monitoring begins after signing of the legal documentation. The beneficiary is responsible for implementing the underlying project in a timely manner. If needed, the beneficiary may recruit consultants to provide specialized professional services in areas such as detailed design, procurement and capacity development.

The Bank's team in charge of the financing remains fully engaged during the implementation of the underlying project both through site visits and continuous dialogue with the beneficiary on a variety of issues, including any environmental and social concerns. As part of the monitoring process, the Bank evaluates not only the implementation of the underlying project, but also any event that would change the risk profile of such project and the beneficiary's compliance with the covenants included in the financing agreements.

*Project Completion and Evaluation* 

In addition to periodic reporting to the Board of Directors on material issues encountered during the implementation of the underlying project, the Bank prepares a completion report no later than six months after the full discharge of the beneficiary's financial obligations to the Bank in connection with the financing. The report assesses the results of the underlying project and the Bank's financing. Upon approval by the Investment Committee, the report is submitted to the Board of Directors for information.

------

***Sovereign-backed Financings***

The approval process for sovereign-backed financings is broadly similar to that for non-sovereign-backed financings. However, since these financings are made to or guaranteed by a Bank member, financing proposals are normally received from the Bank member or development partners. The Bank's due diligence focuses on the impact of the proposed financing on the member's fiscal sustainability, as well as on the environmental, social, fiduciary (procurement, financial management and disbursement) and other implementation aspects of the proposed financing. In addition, the Investment Committee's final review (referred to as the "appraisal review" in the context of sovereign-backed financings) includes a determination of whether to authorize negotiations of the sovereign-backed financing documentation, which must be substantially complete before the approval of the financing is solicited (in contrast to non-sovereign-backed financings, where negotiations do not need to be completed in order to seek approval of the financing). For sovereign-backed financings, the project summary information document is typically prepared and disclosed promptly after concept review, with an update disclosed prior to consideration at appraisal review. The full project document is also disclosed (following approval of the financing), as well as the Bank's project implementation monitoring reports for the financing.

***Investment Committee***

The Investment Committee is the principal forum where matters related to ordinary operations are considered. The Investment Committee is accountable to the President. Pursuant to the terms of reference of the Investment Committee, the members of the Investment Committee are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Chief Investment Officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Vice President, Investment Solutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Vice President, Policy and Strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Chief Financial Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Chief Risk Officer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the General Counsel.

See "Governance and Administration–Senior Management" for the names, nationalities and other biographical information of the members of senior management that serve in these positions as of February 28, 2026.

**Environmental and Social Framework** 

The Bank has established the Environmental and Social Framework, which is intended, among other things, to accomplish the following: (i) to ensure the environmental and social soundness and sustainability of projects financed (in whole or in part) by the Bank; (ii) to address environmental and social risks and impacts in Bank-financed projects; (iii) to provide a robust structure for managing operational and reputational risks of the Bank and its shareholders in relation to the environmental and social risks and impacts of Bank-financed projects; (iv) to provide a mechanism for addressing environmental and social risks and impacts in project identification, preparation and implementation; and (v) to facilitate cooperation on environmental and social matters with development partners. Under the Bank's Environmental and Social Framework, the Bank has established an Environmental and Social Policy and three associated Environmental and Social Standards, which set forth mandatory environmental and social requirements for each project financed (in whole or in part) by the Bank. In addition, the Bank has developed an environmental and social exclusion list, which sets forth activities and other items that the Bank will not knowingly finance. In furtherance of item (iv) noted above, the Bank has established a Project-affected People's Mechanism (the "PPM"), which provides an opportunity for an independent and impartial review of submissions from people affected by the Bank's financings who believe they have been, or are likely to be, adversely affected by the failure on the part of the Bank to implement its Environmental and Social Policy in situations where their concerns cannot be addressed satisfactorily through project-level grievance redress mechanisms or Bank management processes.

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**Economic Sanctions** 

The United Nations Security Council (the "UNSC"), the European Union and individual countries, including the United States and the United Kingdom, may impose economic sanctions and trade embargoes targeting certain countries, territories, entities and individuals. Such economic sanctions and embargo laws and regulations vary in their application with regard to countries, entities and individuals, and the scope of activities that are subjected to sanctions. These sanctions and embargo laws and regulations may be strengthened, relaxed or otherwise modified over time. Certain countries and territories (including Crimea, Cuba, the DNR and LNR regions, Iran, North Korea and Syria), entities and individuals are targeted by sanctions and embargoes imposed by the United States, and certain countries (currently Cuba, Iran, North Korea, and Syria) have been identified as state sponsors of terrorism by the U.S. Department of State.

In the case of sanctions maintained by the United States, the President of the United States generally has broad discretion to impose or remove sanctions, including pursuant to his authority under the International Emergency Economic Powers Act and the Trading with the Enemy Act. In addition, the United States may implement sanctions adopted by the UNSC in order to meet requirements imposed on member states of the United Nations. Other sanctions programs, such as certain measures related to Cuba, Iran and Russia, are specifically mandated under U.S. statutes.

U.S. sanctions may be classified as "primary" sanctions or "secondary" sanctions. Primary sanctions make certain conduct by U.S. persons and persons subject to U.S. jurisdiction, and certain activities taking place in the United States, unlawful. Secondary sanctions generally target non-U.S. persons for conduct that occurs outside of the United States, subjecting those persons to being sanctioned by the United States if they engage in specified conduct.

The Bank complies with applicable UNSC sanctions imposed under Chapter VII of the UN Charter and is mindful of and gives due regard to the restrictions contained in the various economic sanctions programs and embargo laws administered by the United States, the United Kingdom, the European Union and other jurisdictions that limit the ability of persons from doing business or trading with targeted countries, territories, entities and individuals. Although the Bank is not a U.S. person within the meaning of sanctions administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury ("OFAC") and does not operate in or from the United States, the Bank transacts in the ordinary course with various commercial counterparties that are required to comply with U.S. sanctions, including those administered by OFAC. For example, such counterparties may serve as a correspondent bank for the Bank, or as another intermediary that is involved in funds flows in respect of the Bank's loan, investment or funding operations. Furthermore, U.S. persons who are required to comply with U.S. sanctions may be employees of the Bank, or may serve as advisors or service providers to the Bank. U.S. persons also may be purchasers of securities issued by the Bank. In addition, secondary sanctions maintained by the United States may result in sanctions against the Bank if the Bank engages in targeted conduct, including facilitation of transactions and activities involving persons targeted by sanctions, including certain Iran- or Russia-related persons.

The Bank seeks to avoid violations of sanctions and seeks to avoid engaging in sanctionable conduct, as violations or engagement in sanctionable conduct may restrict the Bank's ability to access the U.S. capital markets, including the Bank's ability to offer and sell securities in the United States, and may have a negative impact on the Bank's business, operations or assets. To that end, the Bank maintains risk-based policies and procedures reasonably designed to avoid funds being used in a manner that would cause a violation of applicable sanctions. For example, the Bank screens transactions by consulting relevant sanctions lists of sanctioning authorities for sanctioned individuals, entities and other targets, including but not limited to lists maintained by the United Nations, the United Kingdom, the European Union and the United States. The Bank also gives due regard to economic sanctions and embargo laws when it evaluates potential financings. For example, the Bank evaluates whether proceeds from a financing could be provided indirectly to sanctioned individuals, entities and other targets. To the extent the Bank determines that these or other risks may be present with respect to a financing, the Bank considers these risks in its assessment of the financing and, if the financing is approved, in applicable legal documentation and in the Bank's implementation and monitoring of the financing, in accordance with the Bank's intent to avoid activities that are not in compliance with applicable economic sanctions and embargo laws.

Economic sanctions programs and embargo laws administered by the United States include programs and laws that impose certain restrictions on the ability of persons to do business or trade with certain members of the Bank or certain persons in or associated with those members, including with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Belarus*. The Bank does not have exposure to Belarus or the Belarusian ruble, other than with respect to
the same governance matters and processes common to all non-regional members. Further, on March 3, 2022, in response to the war in Ukraine, the Bank announced that it would place all activities relating
to Belarus on hold and under review, including all Belarus-related projects in the Bank's rolling investment pipeline. See "Management's Discussion and Analysis of Financial Condition and Results of Operations–Recent
Developments–AIIB Response to the War in Ukraine" for further information about AIIB's exposure to Belarus. The Bank screens transactions to avoid engaging in prohibited transactions or sanctionable conduct involving entities or
individuals targeted under U.S. and other sanctions imposed with respect to Belarus.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Iran.* The Bank's contacts with Iran have concerned the same governance matters and processes common
to all regional members, and no other particular contacts are currently contemplated. The Bank has not financed any projects in Iran, nor are any such projects in the rolling investment pipeline. Certain provisions of U.S. law (a) prohibit U.S.
persons and persons subject to U.S. jurisdiction from investing in or facilitating an investment in Iran or in any entity owned or controlled by the government of Iran and (b) require imposition of secondary sanctions on any person who is
determined to have knowingly purchased, subscribed to, or facilitated the issuance of sovereign debt of the government of Iran or debt of any entity owned or controlled by the government of Iran. Iran's shares represent less than two percent
of the Bank's overall capital, and Iran's voting power is also under two percent. The Bank does not believe that Iran's membership in the Bank constitutes ownership or control of the Bank by Iran such that any general-purpose
security issued by the Bank, including securities offered by a prospectus contained in a registration statement filed under the U.S. Securities Act of 1933, would constitute an investment in sovereign debt of Iran or an entity owned or controlled by
the government of Iran for purposes of these provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Myanmar.* The Bank has approved one financing in Myanmar, which was approved by AIIB's Board of
Directors in 2016 and was provided in parallel with other lenders, including the International Finance Corporation ("IFC"), ADB and certain commercial lenders. This financing has been fully disbursed and involves the development,
construction and operation of a power plant to increase reliable and clean energy in Myanmar. The Bank has no other projects in Myanmar in its rolling investment pipeline. The Bank screens transactions to avoid engaging in prohibited transactions or
sanctionable conduct involving entities or individuals targeted under U.S. sanctions imposed with respect to Myanmar, including pursuant to restrictions implemented by the United States beginning in February 2021. The Bank has not engaged in
transactions with entities or individuals targeted under U.S. sanctions in connection with its approved financing in Myanmar.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Russia*. AIIB's exposure to Russia and to RUB, including through the Bank's financing
activities, borrowings and governance and administration, is limited. Russia's shares represent less than seven percent of the Bank's overall capital, and Russia's voting power is under six percent. On March 3, 2022, in
response to the war in Ukraine, the Bank announced that it would place all activities relating to Russia on hold and under review, including all Russia-related projects in the Bank's rolling investment pipeline. See "Management's
Discussion and Analysis of Financial Condition and Results of Operations–Recent Developments–AIIB Response to the War in Ukraine" for further information about AIIB's exposure to Russia. The United States and other
jurisdictions, including the United Kingdom and the European Union, have imposed increasingly extensive sanctions targeting Russia and certain Russian persons. Beginning in 2014, sanctions imposed by the United States and other jurisdictions have
included restrictions relating to transactions involving new debt and, in some cases, new equity of certain Russian financial services, energy and defense and related materiel companies. Significant new and expanded sanctions were imposed by the
United States and other jurisdictions beginning in February 2022 in response to the war in Ukraine; these sanctions, which the United States and other jurisdictions have, since February 2022, further expanded, include prohibitions on new investment
in Russia, prohibitions on providing certain services to any person located in Russia, restrictions on transactions with the Russian central bank, sanctions on Russian financial institutions and restrictions on transactions involving certain new
debt or new equity of specified Russian financial institutions, sanctions on major state-owned enterprises, sanctions on certain Russian government officials and their family members, sanctions on business elites, restrictions on certain capital
markets-related transactions, restrictions on exporting certain goods to Russia or importing certain goods from Russia and restrictions on providing certain services with respect to Russian-origin oil and petroleum products purchased above a set
price cap. The Bank screens transactions to avoid engaging in prohibited transactions or sanctionable conduct involving sectors, entities or individuals targeted under U.S. or other sanctions imposed with respect to Russia. Further, the Bank does
not believe that Russia's membership in the Bank or the Bank's limited exposure to and activities relating to Russia or RUB are such that the offering in the United States of any general-purpose security of the Bank, including securities
offered by a prospectus contained in a registration statement filed under the U.S. Securities Act of 1933, would constitute either a transaction in new debt or an investment in Russia prohibited or restricted under U.S. sanctions in place with
respect to Russia and Russian persons.

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It is possible that new sanctions, or changes to existing, sanctions-related laws, regulations or agreements may impact the Bank's business. Moreover, although the Bank believes that it is in compliance with all applicable sanctions and embargo laws and regulations, and intends to maintain such compliance, the scope of certain laws may be unclear, may be subject to changing interpretations or guidance, or may be strengthened or otherwise amended. Any violation of sanctions or engagement in sanctionable conduct could result in fines, sanctions or other penalties, and could result in some investors deciding, or being required, to divest their interest, or not to invest, in securities issued by the Bank. The Bank cannot predict the impact that the imposition of secondary sanctions would have on the trading market for such securities or whether such sanctions would make it more difficult to sell and trade such securities in certain jurisdictions, including in the U.S. market.

**AIIB Special Funds** 

In accordance with Article 17(1) of the Articles of Agreement, the Bank has established the Project Preparation Special Fund, the Special Fund Window and the Project-Specific Window.

***AIIB Project Preparation Special Fund***

Established in June 2016, the Project Preparation Special Fund provides grants to support and facilitate through technical assistance the preparation of projects to be financed by AIIB in eligible members. Technical assistance eligible for financing includes, among others, consultancy services, equipment necessary for the preparation or delivery of such services or for the implementation of the recommendations made under such consultancy services, and related training.

Projects eligible for support are those (i) which are being considered for financing by AIIB and (ii) which are for the benefit of (a) one or more members of the Bank that, at the time the decision to extend the grant is made by the Bank, are eligible to receive financing from IDA and (b) other members of the Bank with substantial development needs and capacity constraints; provided, however, that the cumulative amount of all grants extended to all projects for the benefit of such other members may not exceed, at any time, 30% of the aggregate amount of all contributions made to the Project Preparation Special Fund.

Any member of the Bank, any of its political or administrative sub-divisions, or any entity under the control of such member or such sub-divisions or any other country, entity or person approved by the President may become a contributor to the Project Preparation Special Fund by entering into a contribution agreement with the Bank ("Contributors"). Special Fund Resources for the Project Preparation Special Fund consist of (i) amounts accepted from Contributors; (ii) any income derived from investment of the resources of the Project Preparation Special Fund; and (iii) any funds reimbursed to the Project Preparation Special Fund. The Bank is under no obligation to provide financial support to the Project Preparation Special Fund. The Bank, acting as administrator of the Project Preparation Special Fund, receives administration fees and cost recovery fees. See "–Ordinary Resources and Special Fund Resources" for further information about Special Fund Resources and related requirements.

As of December 31, 2025, contributions to the Project Preparation Special Fund totaled US$129.4 million, consisting of US$50.0 million from each of China and the United Kingdom, US$18.0 million from Korea, US$10.0 million from Hong Kong, China and US$1.4 million from Kenya.

As of December 31, 2025, the Bank has approved 41 grants under the Project Preparation Special Fund, excluding a grant that was cancelled before any disbursements were made, representing funds of approximately US$107.1 million, net of cancellations. Grants under the Project Preparation Special Fund were provided to the following members: Bangladesh, Cambodia, Fiji, Kyrgyzstan, Lao PDR, Madagascar, Nepal, Pakistan, Rwanda, Sri Lanka, Tajikistan and Uzbekistan.

***AIIB Special Fund Window for Less Developed Members***

The Special Fund Window was established in May 2020 in order to provide grants to buy down interest due under eligible sovereign-backed loans extended under the CRF (other than policy-based loans), which consisted of those that were extended to, or guaranteed by, members of the Bank that, at the time when the decision to approve the loan was made, were eligible to receive financing from the IDA and qualify as IDA-only. In March 2022, the Board of Directors approved the conversion of the Special Fund Window into the Special Fund Window for Less Developed

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Members, thereby allowing more contributions to be made and broadening its scope to permit grants to buy down interest due under eligible sovereign-backed financing that are aligned with AIIB's Corporate Strategy and that are extended to, or guaranteed by, members of the Bank that, at the time when the decision to approve the financing is made, are eligible to receive financing from the IDA and qualify as IDA-only.

Special Fund Resources for the Special Fund Window consist of (i) any amounts transferred by the Bank from the Project Preparation Special Fund; (ii) any amounts received by the Bank for inclusion in the Special Fund Window from any member of the Bank, any of its political or administrative sub-divisions, or any entity under the control of the member or such sub-divisions or any other country, entity or person approved by the President; (iii) any income derived from investment of the resources of the Special Fund Window; (iv) any funds reimbursed to the Special Fund Window and (v) other sources as determined by the AIIB Board of Directors. The Bank is under no obligation to provide financial support to the Special Fund Window. The Bank, acting as administrator of the Special Fund Window, receives administration fees. See "–Ordinary Resources and Special Fund Resources" for further information about Special Fund Resources and related requirements.

As of December 31, 2025, amounts transferred by the Bank to the Special Fund Window and amounts received from members totaled US$139.0 million, consisting of US$39.9 million in transfers from the Project Preparation Special Fund, and US$99.0 million in contributions from members, including a US$6.5 million contribution from Saudi Arabia, US$17.5 million received from Germany and US$75.0 million received from the Ministry of Finance of China.

As of December 31, 2025, fourteen interest rate buy-downs for eligible sovereign-backed loans have been approved under the Special Fund Window for a total of US$74.6 million, net of cancellations, of which US$29.7 million was undisbursed as of December 31, 2025. Such interest rate buy-downs were provided to the following members: Bangladesh, Cambodia, Côte d'Ivoire, Kyrgyzstan, Lao PDR, Maldives and Sri Lanka.

***AIIB Project-Specific Window***

Established in March 2024, the Project-Specific Window enables AIIB to accept, manage and disburse grant co-financings on behalf of contributors into eligible AIIB projects in the Bank's low- and middle-income members and small island members. As of December 31, 2025, committed contributions to the Project-Specific Window, excluding the amount of associated administration fees due to AIIB in respect of the contributions, totaled US$42.0 million, consisting of a US$2.0 million contribution from the China International Development Cooperation Agency paid in 2025, and a US$40.0 million contribution from the Alliance to End Plastic Waste Inc. which has not been paid as of December 31, 2025. As of December 31, 2025, the Bank has approved two grants under the Project-Specific Window, representing funds of approximately US$42.0 million. Grants under the Project-Specific Window were provided to the following members: Tajikistan and Indonesia.

**External Special Funds** 

The Bank manages four external Special Funds, which are considered to be Special Fund Resources received by the Bank in its role as implementing entity of four multilateral partnership facilities: the MCDF, GIF, Pandemic Fund and GCF.

**The Multilateral Cooperation Center for Development Finance** 

Established in 2020, the MCDF is a multilateral financial mechanism designed to promote high-quality infrastructure and connectivity investments in developing countries through the provision of grants to international financial institutions which have become implementing partners of the MCDF Finance Facility (the "MCDF FF"). In addition to the MCDF FF, the MCDF Collaboration Platform promotes communication and collaboration among participating international financial institutions and other development partners regarding plans and activities relating to infrastructure and connectivity investments.

In December 2019, AIIB entered into a Cooperation Agreement with the Ministry of Finance of China concerning the MCDF FF. Under the Cooperation Agreement, China made an advance contribution in anticipation of the formal establishment of the MCDF FF. AIIB administered the advance contribution consistent with rules and procedures applicable to the Bank's own resources, and the funds compensated AIIB for services it provided with respect to the preparation of the MCDF FF. The Cooperation Agreement was terminated on the date when the MCDF FF was established in May 2020.

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Since June 2020, AIIB has served as the administrator of the MCDF FF. AIIB's activities as administrator of the MCDF FF include providing administrative and financial services, including hosting of the MCDF Secretariat. AIIB engages in these activities pursuant to the Governing Instrument of the MCDF FF and an agreement on the terms and conditions of AIIB's service as the administrator of the MCDF FF.

For the year ended December 31, 2025, fees associated with the administration of the MCDF FF totaled US$2.4 million. AIIB is also an implementing partner of the MCDF FF and may, from time to time, receive administration fees with respect to this role.

AIIB has established the MCDF Special Fund as an external Special Fund to administer grants received by AIIB as implementing partner of the MCDF FF. As of December 31, 2025, 20 grants have been approved from the MCDF FF to the MCDF Special Fund for a total of US$20.3 million. These grants are for the benefit of Azerbaijan, Bahrain, Bangladesh, Brazil, Cambodia, China, Côte d'Ivoire, Indonesia, Kazakhstan, Kenya, Lao PDR, Maldives, and Rwanda and for multi-country programs.

**The Global Infrastructure Facility** 

Established in 2014, the GIF is a global collaboration platform that was designed to address the shortage of high-quality, bankable infrastructure projects through the provision of end-to-end transaction advisory services and support to governments and MDBs.

Since June 2021, AIIB serves as technical partner for GIF-supported projects and may from time to time receive fees with respect to this role.

AIIB has established the GIF Special Fund as an external Special Fund to administer grants received from the GIF. As of December 31, 2025, one grant has been approved from the GIF to the GIF Special Fund for US$350,000 to support project definition activities with respect to a potential project in Bangladesh.

**The Pandemic Prevention, Preparedness and Response Trust Fund** 

The Pandemic Fund is a multi-stakeholder global partnership that provides a dedicated stream of additional, long-term financing to strengthen critical pandemic prevention, preparedness and response capabilities in low- and middle-income countries. The Pandemic Fund's Secretariat is hosted by the World Bank.

AIIB was selected as one of the implementing entities to the Pandemic Fund. AIIB has established the Pandemic Fund Special Fund as an external Special Fund to manage grants it receives as an implementing entity to the Pandemic Fund. As of December 31, 2025, the Pandemic Fund has approved two AIIB requests for a total of US$11.8 million in grant funding support to projects in Cambodia and Rwanda. Of this total approved amount, as of December 31, 2025, the Pandemic Fund Special Fund has received a total of US$2.3 million in grant funding from the Pandemic Fund.

**The Green Climate Fund** 

The GCF is the world's largest climate fund mandated by the Conference of the Parties to the United Nations Framework Convention on Climate Change to support developing countries to transition to low-emission, climate-resilient development pathways. The GCF provides concessional financial support through a combination of grants, debt, guarantees and equity instruments to finance climate-aligned (mitigation and adaptation) projects in developing countries.

AIIB is an accredited entity under the GCF and, in that role, may develop funding proposals for the GCF and manage and monitor projects and programs. AIIB has established the GCF Special Fund to manage and deploy the concessional funds that the Bank receives as an accredited entity under the GCF. As of December 31, 2025, the GCF has not approved any funding proposal from AIIB.

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**Quality of Financing Portfolio** 

When a borrower fails to make payment on any principal, interest or other charge due to the Bank, the Bank may suspend disbursements on loans to that borrower. With respect to sovereign-backed loans, the Bank would cease approving new loans to the borrower once any loans are overdue by more than 30 days and suspend all disbursements to or guaranteed by the member concerned once any loans are overdue by more than 60 days.

As required by IFRS Accounting Standard 9, AIIB uses the ECL model to estimate credit loss on financial assets, such as loan disbursements, and on other instruments, such as undrawn loan commitments and financial guarantees. AIIB recognizes a provision to the extent the ECL of a financial instrument exceeds its gross carrying amount. See "Risk Management–Risk Types–Credit Risk" and Notes B3.3.6, B5.1 and D3 to the 2025 Audited Financial Statements for further discussion on the Bank's credit quality analysis.

As of December 31, 2025, no AIIB assets were categorized as overdue or written off, except for (i) one bond investment measured at amortized cost that was assessed as credit impaired with a carrying amount of less than US$0.1 million (net of the associated ECL allowance); and (ii) US$204.0 million of overdue contractual undiscounted paid-in capital receivables, which are not considered impaired.

As of December 31, 2025, total ECL in relation to loans and commitments, debt securities at amortized cost and issued guarantees decreased to US$132.7 million from US$218.8 million as of December 31, 2024. The decrease between December 31, 2025 and December 31, 2024 was mainly attributable to release in the ECL allowance for AIIB's loan investments due to a full repayment of a RUB denominated non-sovereign backed loan at maturity, as well as ECL reduction from the sovereign-backed portfolio as a result of credit improvement, which were partially offset by ECL increases in respect of certain non-sovereign backed loans.

The following table shows the credit quality of loan investments (gross carrying amount of loans and exposure of undrawn loan commitments), issued guarantee commitments and debt securities at amortized cost.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | *(in thousands of US$)* | *(in thousands of US$)* | *(in thousands of US$)* | *(in thousands of US$)* |
|  | **Gross<br>carrying<br>amount and**<br>**commitments** | **ECL** | **Gross<br>carrying<br>amount and**<br>**commitments** | **ECL** |
|  Sovereign-backed loans and guarantees | 44066651 | (31964) | 37645937 | (64178) |
|  Non-sovereign-backed loans | 4277300 | (91530) | 3538576 | (135634) |
|  **Total loans and guarantees** | **48343951** | **(123494)** | **41184513** | **(199812)** |
|  Debt securities at amortized cost | 11381306 | (9253) | 11767469 | (18980) |

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**RISK MANAGEMENT** 

AIIB has established a Financial and Risk Management Framework, which includes an outline of the Bank's approach to risk and forms the guiding reference framework for all policies and guidelines related to risks.

**Risk Philosophy** 

The Bank's risk philosophy is the foundational pillar of the Bank's approach to risk management. According to the risk philosophy, the Bank's risk management function aims to accomplish the following three objectives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enable the Bank to fulfill its mandate to promote infrastructure and other productive sectors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ensure the stability and financial continuity of the Bank through efficient capital allocation and utilization,
and comprehensively manage risks and reputational consequences; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• foster a strong risk culture by embedding risk accountability in the Bank.

**Risk Appetite Statement** 

The Bank's Risk Appetite Statement (the "RAS"), *inter alia*, articulates the maximum aggregate level and types of risk that the Bank is willing to assume, within its Risk Capacity (as defined below), to achieve its strategic objectives and business plan (the "Risk Appetite").

The maximum level of risk that the Bank can assume given its current level of resources before breaching constraints is determined by (i) available capital and liquidity needs; (ii) the operational environment (e.g., technical infrastructure, risk management capabilities and expertise); and (iii) Bank obligations (the "Risk Capacity"). The Bank allocates its Risk Capacity between mandate-driven and non-mandate-driven risks: mandate-driven risks are those directly linked to the Bank's investment operations mandate and non-mandate-driven risks are those arising from activities, including treasury operations and other operational activities, supporting the Bank's investment operations mandate.

The RAS classifies each risk type according to one of three appetite levels – low, medium or high:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Low appetite reflects risk events that have the potential to substantially damage the Bank, jeopardizing its
ability to fulfill its mission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Medium appetite reflects risk events that, while significant, are not a threat in isolation to the Bank. These
risks are typically incurred as part of the Bank's business, but not in the pursuit of the Bank's mandate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• High appetite reflects risk events that are accepted, but closely managed, by the Bank. These risks are typically
incurred in pursuit of the Bank's strategic goals.

The Bank has established a variety of key performance indicators ("KPIs") and key risk indicators ("KRIs"), which are monitored regularly. The Risk Management Department also performs stress tests of the Bank's draft business plan to ensure compliance with the RAS. The Risk Committee informs the Board of Directors of the impact of the final business plan on the RAS and proposes remedial actions in the event the business plan causes the RAS to be breached. The RAS is submitted to the Board of Directors for its approval both on an annual basis and in the event there is any material change to the RAS.

**Risk Management Architecture** 

The risk management architecture comprises the Bank's policies, processes, organizational structure and control and assurance system that, collectively, are designed to help the Bank identify, measure, monitor and control risks. The risk management architecture enables the implementation of AIIB's risk philosophy and ensures accountability regarding risk management. The Board of Directors approves key risk policies and monitors core risk metrics and risk limits. The Audit and Risk Committee reviews risk-related policies and the RAS. The President recommends key risk policies for approval by the Board of Directors. The Risk Committee, which is chaired by the

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Chief Risk Officer and whose members include the Chief Financial Officer, the Vice President, Policy and Strategy, the Vice President, Investment Solutions, the Chief Investment Officers and the General Counsel, exercises oversight on behalf of the President of the key risks of the Bank. The Risk Management Department, which is headed by the Chief Risk Officer, has overall responsibility for managing risks, including implementing risk management strategies, policies and procedures.

Key responsibilities of the Bank's Risk Management Department are the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Risk Management and Oversight*: Overall development and oversight of the Bank's risk framework and
policy, and direct governance of AIIB's Risk Committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Guardian of Risk Appetite*: Articulation of the Bank's overall Risk Appetite and appropriate risk
limits, and the embedding of the Risk Appetite into the Bank's processes and culture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Risk Identification and Assessment*: Identification of all material risks, definition of key risk metrics
and indicators and development of methodologies, indicators and models to measure risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Risk Monitoring and Reporting*: Regular monitoring of AIIB's risks and the development and
maintenance of a concise upward risk reporting system;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Strategic Decision Making*: Align overall business and operational plans with appropriate risk management
and ensure that strategic planning reflects the Bank's Risk Appetite;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Risk Optimization*: Risk optimization and active risk management by shaping the risk profile within the
Bank's Risk Appetite limits, strategic capital allocation through risk-adjusted capital and development of risk-adjusted performance management; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *External Communication*: Facilitate the consistent and proportionate disclosure of all risks to external
parties, including interaction with rating agencies.

**Three Lines of Defense** 

AIIB's risk management activities are organized in line with the Three Lines of Defense Principle:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The first line of defense consists of the Bank's business units where risks are taken, including investment
operations and other client-facing functions, and is designed to ensure that AIIB effectively identifies, assesses, manages and reports risk;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The second line of defense is the Bank's risk management and compliance functions. The risk management
function is primarily responsible for overseeing the Bank's risk-taking activities, undertaking risk assessments and reporting on risk-related work carried out by the first line of defense. The compliance function monitors compliance with
laws, corporate governance rules and internal policies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The third line of defense is the Bank's internal audit function, which is responsible, in part, for
reviewing and providing assurance regarding the effectiveness of the Bank's risk management activities and governance.

**Capital Adequacy** 

The Bank's capital supports its operations and acts as a cushion to absorb unexpected losses and/or a deterioration in the value of the Bank's assets. AIIB manages capital adequacy risk in accordance with several limits, including the following. First, as required by Article 12(1) of the Articles of Agreement, the Bank's total exposure from its investment operations must be less than the Bank's total unimpaired subscribed capital, reserves and retained earnings. This limit may be increased up to 250% of the Bank's unimpaired subscribed capital, reserves and retained earnings with the approval of the Board of Governors. Second, the Bank's available capital (i.e., paid-in capital, plus reserves, a prudent portion of callable capital and accumulated retained earnings, less prudent valuation adjustments

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and unrealized own-credit gains or losses) must be greater than its economic capital ("ECap") (a risk-sensitive measure used to determine the Bank's capital requirements), based on an actual and a three-year projected balance sheet composition, both on a base case and on a stressed scenario basis. AIIB calculates ECap on credit risk, equity investment risk, market risk, counterparty credit risk and operational risk. The stress testing of the Bank's available capital serves several purposes, including to set a buffer over ECap that protects the Bank's credit ratings in the event of a severe and protracted crisis scenario.

**Risk Types** 

AIIB has developed both qualitative and quantitative methodologies for identifying, measuring and managing risks. Material risks that the Bank currently faces or expects to face in the future are listed below.

*Credit Risk* 

Credit risk is the risk that a borrower or other counterparty fails to discharge an obligation, thereby causing a loss on the part of the Bank. The Bank is exposed to credit risk in its financing activities.

Sovereign credit risk is determined as a single evaluation for all obligations owed by a sovereign to AIIB, all of which must comply with the Bank's Operational Policy on Financing and General Conditions applicable to sovereign-backed loans (or, for obligations originated through a third party, with requirements of the third party that are equivalent in substance and enforceability to the Bank's Policy on Financing and General Conditions applicable to sovereign-backed loans). The Bank's evaluation of sovereign credit risk is based on quantitative and qualitative risk measurements. The Bank performs its own sovereign credit analysis and assigns its own internal credit ratings, comprising 16 grades. Grades 1a-4 are considered investment grade. As of December 31, 2025, the rating of sovereign-backed loans ranged from 1a to 11b. As an MDB, the Bank does not participate in country debt rescheduling or debt reduction exercises of sovereign-backed loans or guarantees.

Non-sovereign credit risk relates to the creditworthiness of a private obligor (including a publicly owned company that does not have the benefit of an explicit sovereign guarantee) and the ability and willingness of such private obligor to repay its debt obligations. The Bank deploys a variety of tools to manage this risk, including assigning its own internal credit rating for the borrower (taking into account specific project, sector, macroeconomic and country credit risks) and possibly requiring credit enhancements. For non-sovereign projects, risk ratings are normally capped by the sovereign credit rating, except where the Bank has recourse to a guarantor from outside the country that has a better rating than the local sovereign credit rating. As of December 31, 2025, the rating of non-sovereign loans ranged from 1b to 12 (on the Bank's 16-grade internal credit ratings scale). The Bank also imposes certain exposure limits in respect of non-sovereign loans.

The Bank has adopted an ECL three-stage model for assessing credit risk: Stage 1 for those financial instruments that have not experienced a significant increase in credit risk ("SICR") since initial recognition; Stage 2 for those financial instruments that have experienced a SICR since initial recognition; and Stage 3 for those financial instruments deemed credit impaired.

To determine whether SICR has occurred, the Bank examines quantitative, qualitative and backstop criteria. The quantitative criteria for determining whether SICR has occurred are as follows: a three-grade downgrade for financial assets with an internal rating following the downgrade of 8 or better on the Bank's internal credit ratings scale and a two-grade downgrade for financial assets with an internal rating following the downgrade of 9 or worse on the Bank's internal credit ratings scale. Qualitative criteria include (i) adverse changes in business, financial or economic conditions; (ii) expected breach of contract that may lead to covenant waivers or amendments; (iii) transfer to watchlist/monitoring; or (iv) change in payment behavior. As a backstop, SICR is deemed to have occurred if the payment under a financial instrument is past due by 30 or more days.

To determine whether an asset is credit impaired, the Bank assesses whether one or more events has occurred that will have a detrimental impact on the estimated cash flows of such asset. Evidence of credit impairment includes observable data on any of the following events: (i) a significant financial difficulty of the borrower; (ii) a breach of contract, such as a default or past due event; (iii) the lender or lenders of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower one or more concessions that the lender or lenders would not otherwise consider; (iv) an increasing likelihood that the borrower will enter bankruptcy or other financial reorganization; or (v) the purchase or origination of a financial asset at a deep discount that reflects the incurred credit losses.

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The Bank measures ECL on both a 12-month and contractual lifetime basis in the following manner: Point-in-time probability of default \* loss given default \* exposure at default \* discount factor. Exposure at default is the gross carrying amount at each point in time over the life of the financial instrument. 12-month ECL is calculated based on a one-year time horizon and lifetime ECL is calculated based on the contractual remaining life of the financial instrument. ECL calculations are performed for three different scenarios: baseline, upside and downside. In respect of each financial instrument, the Bank defines default to mean one or more of the following: (i) payment default (180 days past due for sovereign obligors or 90 days past due for non-sovereign obligors); (ii) breach of specific covenants that trigger a default clause; (iii) default under a guarantee or collateral or other support agreement; (iv) failure to pay a final judgment or court order; and (v) bankruptcy, liquidation or the appointment of a receiver.

As part of its credit risk monitoring and model governance processes, the Bank periodically evaluates the performance of the ECL model and reviews the appropriateness of critical modeling methodology and risk parameter inputs. During the nine months ended September 30, 2025, the Bank conducted a holistic review of the Bank's framework for calculating expected recoveries in the case of defaults of non-sovereign-backed loans and guarantees (i.e., loss given default) to ensure alignment with external standards by drawing on accumulated experience, rating agency data, and benchmarking against MDB practices. During the nine months ended September 30, 2024, the Bank conducted a holistic review and adopted a series of enhancements to (i) the Bank's framework for loss given default for sovereign-backed loans and guarantees, updating this framework in accordance with recommendations of the G20 Capital Adequacy Framework working group and published loss data of peer MDBs; (ii) the forward-looking macroeconomic scenarios used for the baseline, upside and downside scenarios applied in the Bank's ECL calculations, reflecting evolutions in the global economic environment and heightened volatilities since 2020, emerging risks and, for countries vulnerable to climate change, climate change as an additional shock to the downside scenario; and (iii) the Bank's methodology for calculating point-in-time probability of default, applying more granular data for the country and industry of an obligor. See Note D3 to the 2025 Audited Financial Statements and Note D3 to AIIB's audited financial statements as of and for the year ended December 31, 2024, which are included in Exhibit 2 to AIIB's annual report on Form 18-K for the fiscal year ended December 31, 2024, for further information regarding these revisions to the Bank's ECL model.

Where necessary, the Bank includes a post model adjustment ("PMA") as an overlay to the modeled ECL for loan investments in Stage 1 and Stage 2 to reflect information beyond forecastable variables, including geopolitical and economic factors, which are assessed at individual project level. As of December 31, 2025 PMA resulted in an increase in provision for ECL of US$10.7 million. As of December 31, 2024, PMA resulted in an increase in provision for ECL of US$81.0 million.

The Bank writes off the gross carrying amount of a financial asset when it has no reasonable expectations of recovering the contractual cash flows on such asset in its entirety or a portion thereof.

See "Operations of AIIB–Quality of Financing Portfolio" and Notes B.3.3.6, B5.1 and D3 to the 2025 Audited Financial Statements for further information on ECL calculations and balances.

The table below sets forth the Bank's loans investments (gross carrying amount of loans and exposure of loan commitments) and issued guarantee commitments, classified by geographic distribution and ECL staging:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Region** | **As of Dec. 31, 2025** | **As of Dec. 31, 2025** | **As of Dec. 31, 2025** | **As of Dec. 31, 2024** | **As of Dec. 31, 2024** | **As of Dec. 31, 2024** |
| **Region** | **Stage 1** | **Stage 2** | **Total** | **Stage 1** | **Stage 2** | **Total** |
|  | *(in thousands of US$)* | *(in thousands of US$)* | *(in thousands of US$)* | *(in thousands of US$)* | *(in thousands of US$)* | *(in thousands of US$)* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Sovereign-backed loans and guarantees<sup>(1)</sup></u> |  |  |  |  |  |  |
|  Total Regional | 40677904 | 379630 | 41057534 | 34520629 | 876860 | 35397489 |
|  Total Non-Regional | 3009117 | **—** | 3009117 | 2248448 | **—** | 2248448 |
|  Total sovereign-backed loans and guarantees | 43687021 | 379630 | 44066651 | 36769077 | 876860 | 37645937 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Non-sovereign-backed loans</u> |  |  |  |  |  |  |
|  Total Regional | 3146059 | 638473 | 3784532 | 2791602 | 399091 | 3190693 |
|  Total Non-Regional | 298078 | 194690 | 492768 | 243377 | 104506 | 347883 |
|  Total non-sovereign-backed loans | 3444137 | 833163 | 4277300 | 3034979 | 503597 | 3538576 |
|  **Total** | **47131158** | **1212793** | **48343951** | **39804056** | **1380457** | **41184513** |

---

Note:

(1) Sovereign-backed guarantees issued as of December 31, 2025 and December 31, 2024 were designated Stage 1.

The Bank's maximum exposure to credit risk from financial instruments other than undrawn loan commitments, before taking into account any collateral held or other credit enhancements, is the carrying amount of such instruments (as reflected on the Bank's balance sheet). The maximum exposure to credit risk from undrawn loan commitments was US$17,340.9 million as of December 31, 2025 and US$13,005.4 million as of December 31, 2024.

The table below sets forth the Bank's credit enhancements for loans and commitments:

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| | | |
|:---|:---|:---|
|  | **As of<br>December 31,<br>2025** | **As of<br>December 31,<br>2024** |
|  | *(in thousands of US$)* | *(in thousands of US$)* |
|  Guaranteed by sovereign members | 3530462 | 3139428 |
|  Guaranteed by non-sovereign entities | 1820126 | 1216596 |
|  Unguaranteed<sup>(1)</sup> | 41738622 | 35484760 |
|  **Total** | **47089210** | **39840784** |

---

Note:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The unguaranteed loan investments mainly represent sovereign loans and loan commitments granted to members that
are not guaranteed in any respect. For loans in which guarantees cover only a portion of the amount, the entire exposure is classified under the guaranteed categories.

The table below sets forth the Bank's loan portfolio (including committed and outstanding amounts) and issued financial guarantees, classified by ranges of internal credit ratings assigned by the Bank and year of origination.

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Range of Internal**<br> **Credit Ratings** | **As of December 31, 2025<sup>(1)</sup>** | **As of December 31, 2025<sup>(1)</sup>** | **As of December 31, 2025<sup>(1)</sup>** | **As of December 31, 2025<sup>(1)</sup>** | **As of December 31, 2025<sup>(1)</sup>** | **As of December 31, 2024<sup>(1)</sup>** | **As of December 31, 2024<sup>(1)</sup>** | **As of December 31, 2024<sup>(1)</sup>** | **As of December 31, 2024<sup>(1)</sup>** | **As of December 31, 2024<sup>(1)</sup>** |
| **Range of Internal**<br> **Credit Ratings** | **2025** | **2024** | **2023** | **Before<br>2023** | **Total** | **2024** | **2023** | **2022** | **Before<br>2022** | **Total** |
|  | *(in millions of US$)* | *(in millions of US$)* | *(in millions of US$)* | *(in millions of US$)* | *(in millions of US$)* | *(in millions of US$)* | *(in millions of US$)* | *(in millions of US$)* | *(in millions of US$)* | *(in millions of US$)* |
|  1a to 4 | 3038 | 3408 | 3918 | 14735 | 25099 | 3075 | 3750 | 3818 | 11921 | 22564 |
|  5 to 7 | 3267 | 2631 | 2167 | 7406 | 15471 | 1974 | 2236 | 1987 | 5831 | 12028 |
|  8 to 10 | 1536 | 756 | 1162 | 4006 | 7460 | 499 | 1293 | 1249 | 2851 | 5892 |
|  11a to 12 | 40 | 15 |  | 259 | 314 | 15 |  |  | 686 | 701 |
|  **Total** | **7881** | **6810** | **7247** | **26406** | **48344** | **5563** | **7279** | **7054** | **21289** | **41185** |

---

Note:

(1) The amounts set forth in this table include loan investments (gross carrying amount of loans and exposure of
undrawn loan commitments) and issued guarantee commitments. Undrawn commitment amounts are amounts that the Bank is obligated to provide under legally binding documentation, that the Bank has not yet disbursed and that the Bank does not have full
discretion to decline to disburse. Outstanding amounts represent the gross carrying amount of the loans (i.e., including the transaction costs and fees that are capitalized through the effective interest method). The year of origination is the year
in which a loan became effective (see "Operations of AIIB–Financing Portfolio"). Year of origination is based on the date on which legally binding documentation was signed.

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*Equity Investment Risk* 

Equity investment risk is the risk of losing money from investments in equities (which may be held directly or through holdings in a fund). The Bank may deploy a variety of measures to manage this risk. For example, if the equity is listed, the investment risk can be marked-to-market, subject to liquidity discounts. For unlisted equities, the investment risk is measured by reference to fair value, with the aid of valuation models and external benchmarks. Risk limits on equity investments are designed both to capture the maximum loss to which the Bank is exposed and to ensure that AIIB's equity investments are within the Bank's risk appetite.

The Bank treats its fund investments, such as limited partnership funds and trust investments with an equity nature of participation, in the same way as equity investments when they have the following features: (i) the investments entitle the Bank to distributions according to pre-determined arrangements during their lives and upon liquidation and (ii) the investments do not promise a particular return to the holders.

As of December 31, 2025, the fair value of the Bank's investments with equity participation, which include the bank's funds investments, investments in venture capital associates and others amounted to US$1,435.2 million, compared to US$1,255.5 million as of December 31, 2024.

*Liquidity Risk* 

Liquidity risk is the risk that the Bank will not be able to meet efficiently both expected and unexpected current and future cash flows and collateral needs without affecting either daily operations or the financial condition of the Bank. AIIB manages liquidity risk in a variety of ways, including the setting of risk limits, the monitoring of liquidity risk ratios and early warning indicators, diversification, the deployment of liquidity buffers and the implementation of a liquidity contingency plan. Under the Bank's policy, the Bank maintains liquidity at levels at least equal to (i) 40% of net cash flow requirements for the next three years and (ii) 100% of net cash flow requirements for the next year under extreme stress conditions. The Bank also maintains a stock of high-quality liquid assets to meet potential liquidity requirements for a 30-day stress scenario and periodically conducts stress tests to ensure that it can meet its payment obligations.

The table below sets out the contractual maturities of the Bank's material financial liabilities as of December 31, 2025:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Less than 1<br>month** | **1-3<br>months** | **3-12 months** | **1-5 years** | **Over 5 years** | **Total** |
|  | *(in thousands of US$)* | *(in thousands of US$)* | *(in thousands of US$)* | *(in thousands of US$)* | *(in thousands of US$)* | *(in thousands of US$)* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Financial liabilities</u> |  |  |  |  |  |  |
|  Borrowings | (3863752) | (383968) | (6518265) | (24093295) | (9483828) | (44343108) |
|  Other liabilities<sup>(1)</sup>  | (1028026) |  |  |  |  | (1028026) |

---

Note:

(1) Other liabilities include collateral held in relation to derivatives that becomes repayable dependent on daily
movements in interest rates, payable and advance receipt for unsettled trades and bank overdrafts.

*Market Risk* 

Market risk is the risk of losing money due to the overall performance of the financial markets across all marketable instruments in the Bank's treasury and investment operations portfolio. The Bank is potentially exposed to three material types of market risk: currency, spread and interest rate risk. The Bank employs a variety of methods to assess and mitigate market risks, such as monitoring value-at-risk, changes in economic value of equity, net interest income sensitivity, the interest rate repricing gap, and duration indicators, as well as the setting of limits. Currency risk is managed through funding debt-funded assets in the same currency (on an after-hedging basis). The Bank manages refinancing risk by applying "pass-through pricing" for sovereign-backed financings and risk premia for non-sovereign-backed financings and by applying a limit on debt redemptions.

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AIIB has completed its project of transitioning to alternative benchmark rates. As of December 31, 2025, a majority of the Bank's loans are subject to floating interest rates, i.e., SOFR for U.S. dollars, 6-month EURIBOR for Euros and 3-month SHIBOR for Chinese yuan. The most significant are SOFR-based loans, which are AIIB's main sovereign lending product. AIIB also issues bonds in various currencies, and typically swaps their proceeds into U.S. dollar SOFR liabilities, and may fund local currency loans through cross-currency swaps from U.S. dollars into the local currency.

*Counterparty Credit Risk* 

Counterparty credit risk is the risk that a counterparty to a transaction defaults before the final settlement of such transaction's cash flows.

The Bank manages counterparty credit risk, principally with respect to its treasury portfolio, through a variety of ways, including the following: (i) assigning a credit rating for each counterparty, which must be at or above a defined minimum for it to be considered an eligible counterparty; (ii) assigning a credit limit to each eligible counterparty before consummating any transaction with it; (iii) monitoring AIIB's exposure to each counterparty; and (iv) monitoring each counterparty's credit quality, and using collateral agreements and limits adjustments to mitigate against deterioration in such credit quality.

As of December 31, 2025, the Bank was exposed to counterparty credit risk on its treasury portfolio, which mainly consisted of term deposits, certificates of deposit, commercial papers, money market funds, bond investments and investments in portfolios of high credit quality securities managed by external asset managers. See "Management's Discussion and Analysis of Financial Condition and Results of Operations–Balance Sheet–Assets." The Bank is also exposed to counterparty credit risk on its derivatives transactions, which is managed through the use of credit support annexes that require the exchange of cash collateral (subject to minimum threshold amounts) and the posting of initial margin by the counterparty should its credit rating fall below a certain threshold, and to a limited extent, on its investment operations.

*Asset Liability Risk* 

Asset liability risks arise from the mismatch of assets and liabilities in terms of currency, interest rates or maturities. Asset liability risk is managed through a variety of tools, including balance sheet projections and the setting of risk limits.

The Bank offers loans in U.S. dollars and in other currencies, provided it has the means to adequately operate in such other currencies and manage associated risks (including through the use of currency swaps or other hedging mechanisms).

Debt-funded financial assets, such as loans, that create market exposures are funded on a back-to-back basis, managed through the use of financial derivatives or otherwise passed through to the borrower. Debt-funded financial assets may be funded with liabilities of a shorter maturity or with mismatched timing of cash flows, subject to defined debt redemption limits that impose a ceiling on the amount of liabilities that may mature during any period. Such refinancing risk may also be mitigated by applying "pass-through pricing" for sovereign-backed financings and risk premia for non-sovereign-backed financings. See "–Market Risk."

Any financial derivative entered into by the Bank will be subject to limits and reporting requirements.

*Model Risk* 

Model risk is the risk of adverse consequences arising from decisions based on incorrect or misused model outputs and reports. The Bank has established processes to ensure that the Bank's models have been adequately validated, capture material risks and are conceptually sound and suitably controlled.

*Operational Risk* 

Operational risk is the risk of loss, or detriment, resulting from inadequate or failed processes or systems, through human error or from the occurrence of external events. The Bank's definition of operational risk is consistent with the Basel Committee Banking Industry Standards, but has been extended to include reputational risk. Effective management and mitigation of operational risk relies on a system of internal controls aimed at identifying various risks and establishing acceptable risk parameters and monitoring procedures.

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*Compliance Risk* 

Compliance risk is the risk of legal or regulatory sanctions, material financial loss or reputational loss that AIIB may suffer as a result of its failure to comply with laws, regulations, internal rules and standards as they relate to financial crime. An independent compliance risk function is responsible for safeguarding the Bank, especially in complying with the aforementioned sanctions and preventing money laundering and financing of terrorism.

*Integrity Risk* 

Integrity risk is the risk that the Bank or its clients will engage in activities that may have an adverse reputational impact on the Bank, whether due to the nature of those activities or due to the background and behavior of the entities with whom the Bank conducts those activities, including those described in the Bank's Policy on Prohibited Practices.

The Bank deploys a variety of measures to mitigate these risks, including impact assessments, ongoing interaction with counterparties, clients and other stakeholders and regular reporting and monitoring.

*Climate Risk* 

The Bank evaluates climate risk with consideration of both physical and transition risks. Physical risk is the risk that asset values may decline or operations may be disrupted as a result of physical impact from changes in the climate, while transition risk is the risk that asset values may decline because of changes in climate policies or changes in the underlying economy due to decarbonization. The Bank uses a variety of tools to measure and mitigate these risks, including by incorporating environment, social and governance factors into internal credit assessments and incorporating climate-related considerations into the Bank's ECL model. In August 2025, AIIB released its inaugural 2024 AIIB Sustainability Report, which describes the impact of climate-related risks on the Bank's financial performance. The 2024 AIIB Sustainability Report is not incorporated herein by reference.

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**GOVERNANCE AND ADMINISTRATION** 

Pursuant to the Articles of Agreement, the Bank is administered and managed by the Board of Governors, the Board of Directors, a President, one or more Vice-Presidents and other officers and staff.

**Board of Governors** 

All of the powers of the Bank are vested in the Board of Governors, consisting of one Governor and one Alternate Governor appointed by each member. While the Articles of Agreement do not specify criteria for the appointment of a Governor by the member, the composition of the Board of Governors includes officials of ministerial (or equivalent) rank. Alternate Governors may only vote in the absence of their principal. A Chairman is elected at each Annual Meeting and such person holds the office until the election of the next Chairman.

The Board of Governors may delegate to the Board of Directors any or all its powers, except the power to (i) admit new members and determine the conditions of their admission; (ii) increase or decrease the authorized capital stock of the Bank; (iii) suspend members; (iv) decide appeals from interpretations or applications of the Articles of Agreement given by the Board of Directors; (v) elect the Directors of the Bank and determine expenses to be paid for Directors and Alternate Directors, as well as their remuneration, if any; (vi) elect, suspend or remove the President and determine his/her remuneration; (vii) approve the general balance sheet and statement of profit and loss of the Bank; (viii) determine the reserves and the allocation and distribution of net profits of the Bank; (ix) amend the Articles of Agreement; (x) decide to terminate the operations of the Bank and to distribute its assets; and (xi) exercise such other powers as expressly assigned to the Board of Governors in the Articles of Agreement. The Board of Governors retains full power to exercise its authority over any delegated matter.

All matters before the Board of Governors are decided by a majority of the votes cast, other than matters that are designated as a Super Majority Vote or Special Majority Vote pursuant to the Articles of Agreement. A Super Majority Vote requires an affirmative vote of two-thirds of the total number of Governors, representing not less than three-fourths of the total voting power of AIIB's members. Matters requiring a Super Majority Vote include, among others, matters relating to (i) suspension of membership; (ii) termination of the Bank's operations; (iii) distribution of assets; (iv) amendments to the Articles of Agreement; (v) increases in authorized capital; (vi) changing the subscription base so that regional members comprise less than 75% of total subscribed stock; (vii) increases to the subscription amount of a member; (viii) assistance to recipients beyond those authorized in the Articles of Agreement; (ix) allocation and distribution of net income otherwise than as provided by the Articles of Agreement; (x) electing, suspending or removing the President of the Bank; and (xi) increasing or decreasing the size of the Board of Directors. A Special Majority Vote requires an affirmative vote of a majority of the total number of Governors, representing not less than a majority of the total voting power of AIIB's members. A Special Majority Vote is required for certain matters, including, among others, those relating to (i) the issue of shares other than at par value; (ii) establishing subsidiary entities; and (iii) admitting members of IBRD or ADB under different terms than provided for in the Articles of Agreement. As noted above under "Asian Infrastructure Investment Bank–Membership, Capital Structure and Reserves–Capital Structure," voting rights acquired by a member in respect of paid-in and associated callable shares for which payments are due but have not been received are suspended until full payment is received by the Bank.

As of February 28, 2026, the Board of Governors was composed of the following members and alternates:

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| | | |
|:---|:---|:---|
| **Member** | **Governor and Current Position with Member** | **Alternate and Current Position with Member** |
| Afghanistan | Mohammad Khalid Payenda,<br> Acting Minister of Finance | Nazir Kabiri,<br> Deputy Minister for Policy |
| Algeria | Abdelkrim Bouzred,<br> Minister of Finance | Nawal Lammari,<br> Director of Multilateral Economic and Financial Relations |

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| | | |
|:---|:---|:---|
| **Member** | **Governor and Current Position with Member** | **Alternate and Current Position with Member** |
| Argentina | Pablo Quirno,<br> Secretary of Finance | Matias Mana,<br> Undersecretary of International Financial Relations |
| Armenia | Vahe Hovhannisyan,<br> Minister of Finance | Edgar Mkrtchyan,<br> Deputy Minister of Finance |
| Australia | Jim Chalmers,<br> Treasurer | Daniel Mulino,<br> Assistant Treasurer and Minister for Financial Services |
| Austria | Markus Marterbauer,<br> Federal Minister of Finance | Harald Waiglein,<br> Director General for Economic Policy and Financial Markets, Federal Ministry of Finance |
| Azerbaijan | Mikayil Jabbarov,<br> Minister of Economy | Samir Sharifov,<br> Minister of Finance |
| Bahrain | Shaikh Salman Khalifa Salman Alkhalifa,<br> Minister of Finance | Yusuf Abdulla Humood,<br> Undersecretary for Financial Affairs |
| Bangladesh | Salehuddin Ahmed,<br> Finance and Planning Adviser | Md. Shahriar Kader Siddiky,<br> Secretary of the Economic Relations Division |
| Belarus | Nikolai Snopkov,<br> First Deputy Prime Minister | Yury Seliverstau,<br> Minister of Finance |
| Belgium | Jan Jambon,<br> Vice Prime Minister and Minister of Finance and Pensions, responsible for the National Lottery and Federal Cultural Institutions | Filiz Korkmazer,<br> Head of the Expertise and Operational Support (EOS) Unit within the General Administration of the Treasury, Federal Public Service Finance |
| Benin | Romuald Wadagni,<br> Minister of Economy and Finance | Hugues Oscar Lokossou,<br> General Manager, Debt Management Agency<br> "Caisse Autonome d'Amortissement (CAA)" |
| Brazil | Fernando Haddad,<br> Minister of Finance | Tatiana Rosito,<br> Vice Minister for International Affairs at the Ministry of Finance |
| Brunei Darussalam | Amin Liew Abdullah,<br> Minister of The Prime Minister's Office and Minister of Finance and Economy II | Pengiran Datin Zety Sufina Dato Sani,<br> Deputy Minister of Finance and Economy (Fiscal) |
| Cambodia | AUN Pornmoniroth,<br> Deputy Prime Minister and Minister of Economy and Finance | Vongsey Vissoth,<br> Secretary of the State Ministry of Economy and Finance |

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| | | |
|:---|:---|:---|
| **Member** | **Governor and Current Position with Member** | **Alternate and Current Position with Member** |
| Canada | François-Philippe Champagne,<br> Minister of Finance and National Revenue | Rob Stewart,<br> Deputy Minister of International Trade |
| Chile | Nicolás Grau Veloso,<br> Minister of Finance | Heidi Berner Herrera,<br> Undersecretary of Finance |
| China | Lan Fo'an,<br> Minister of Finance | Liao Min,<br> Vice Minister of Finance |
| Cook Islands | Mark Brown,<br> Prime Minister and Minister<br> of Finance | Garth Henderson,<br> Financial Secretary of Ministry of Finance and Economic Management |
| Côte d'Ivoire | Adama Coulibaly,<br> Minister of Economy and Finance | Nialé Kaba,<br> Minister of Planning and Development |
| Croatia | Tomislav Ćorić,<br> Deputy Prime Minister and Minister of Finance | Stipe Župan,<br> State Secretary of the Ministry of Finance |
| Cyprus | Makis Keravnos,<br> Minister of Finance | Costas Constantinides,<br> Senior Economic Officer |
| Denmark | Ole Thonke,<br> Under-Secretary for Development Policy | Karen Grønlund Rogne,<br> Director for Multilateral Cooperation and Policy |
| Djibouti | Ilyas Moussa Dawaleh,<br> Minister of Economy and Finance in Charge of Industry | Samir Aden Cheikh,<br> Principal Advisor & Director of Cabinet, Ministry of Economy and Finance in Charge of Industry |
| Ecuador | Sariha Moya,<br> Minister of Economy and Finance | Gary Coronel,<br> Vice Minister of Finance |
| Egypt | Ahmed Kouchouk,<br> Minister of Finance | Rania Al-Mashat,<br> Minister of International Cooperation |
| El Salvador | Jerson Posada,<br> Minister of Finance | Luis Sánchez,<br> Vice Minister of Finance |
| Ethiopia | Ahmed Shide,<br> Minister of Finance | Semereta Sewasew Aweke,<br> State Minister of Finance for Economic Cooperation |
| Fiji | Esrom Yosef Immanuel,<br> Minister of Finance | Shiri Krishna Gounder,<br> Permanent Secretary for Ministry of Finance, Strategic Planning, National Development and Statistics |

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| | | |
|:---|:---|:---|
| **Member** | **Governor and Current Position with Member** | **Alternate and Current Position with Member** |
| Finland | Riikka Purra,<br> Minister of Finance | Leena Mörttinen,<br> Permanent Under-Secretary |
| France | Roland Lescure,<br> Minister of Economy, Finance and Industrial, Energy and Digital Sovereignty | Bertrand Dumont,<br> Director General of the French Treasury |
| Georgia | Lasha Khutsishvili,<br> Minister of Finance | Mariam Kvrivishvili,<br> Minister of Economy and Sustainable Development |
| Germany | Lars Klingbeil,<br> Federal Minister of Finance | Jeanette Schwamberger,<br> State Secretary of the Federal Ministry of Finance |
| Ghana | Cassiel Ato Forson,<br> Minister for Finance | Thomas Nyarko Ampem,<br> Deputy Minister for Finance |
| Greece | Kyriakos Pierrakakis,<br> Minister of Economy and Finance | Achilleas Tzimas,<br> Head of EU Affairs and International Relations Directorate of the Ministry of Finance |
| Guinea | Moussa Cisse,<br> Minister of Economy, Finance and Planning | Karamo Kaba,<br> Governor of the Central Bank |
| Hong Kong, China | Paul MP Chan,<br> Financial Secretary | Christopher Hui,<br> Secretary for Financial Services and the Treasury |
| Hungary | Márton Nagy,<br> Minister for National Economy of Hungary | Márton Bókay,<br> Deputy State Secretary for National Development Financing, Ministry for National Economy of Hungary |
| Iceland | Daði Már Kristófersson,<br> Minister of Finance and Economic Affairs | Hermann Sæmundsson,<br> Permanent Secretary,<br> Ministry of Finance and Economic Affairs |
| India | Nirmala Sitharaman,<br> Minister of Finance | Anuradha Thakur,<br> Secretary (Economic Affairs) |
| Indonesia | Purbaya Yudhi Sadewa,<br> Minister of Finance | Rachmat Pambudy,<br> Minister of National Development Planning |
| Iran | Seyed Ali Madanizadeh,<br> Minister of Economic Affairs and Finance | Mahdi Heidari,<br> Vice Minister of Economic Affairs and Finance of the Islamic Republic of Iran and President of the Organization for Investment, Economic and Technical Assistance of Iran |

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| | | |
|:---|:---|:---|
| **Member** | **Governor and Current Position with Member** | **Alternate and Current Position with Member** |
| Iraq | Taif Sami Mohammed,<br> Minister of Finance | Thafer Mahdi Abdullah,<br> Chairman of Iraqi Fund for External Development |
| Ireland | Simon Harris T.D.,<br> Tánaiste and Minister for Finance | John Hogan,<br> Secretary General of the Department of Finance |
| Israel | Bezalel Smotrich,<br> Minister of Finance | Shmuel Abramzon,<br> Acting Chief Economist at the Ministry of Finance |
| Italy | Giancarlo Giorgetti,<br> Minister of Economy and Finance | Manuela Nenna,<br> Head of International Financial Relations |
| Jordan | Zeina Toukan,<br> Minister of Planning and International Cooperation | Marwan Al-Refai,<br> Secretary General of the Ministry of Planning and International Cooperation |
| Kazakhstan | Serik Zhumangarin,<br> Deputy Prime Minister — Minister of National Economy | Satzhan Ablaliev,<br> Vice Minister of Transport |
| Kenya | John Mbadi Ng'ongo,<br> Cabinet Secretary of the National Treasury and Economic Planning | Christopher Kiprotich Kiptoo,<br> Principal Secretary of the National Treasury |
| Korea | Yun-cheol Koo,<br> Deputy Prime Minister and Minister of Economy and Finance | Chang Yong Rhee,<br> Governor of the Bank of Korea |
| Kuwait | Sobeeh A. A. Almukhaizim,<br> Minister of Electricity, Water and Renewable Energy & Acting Minister of Finance and Minister of State for Economic Affairs and Investment | Waleed S. Al-Bahar,<br> Acting Director General of Kuwait Fund for Arab Economic Development (KFAED) |
| Kyrgyzstan | Baketaev Almaz Kushbekovich,<br> Minister of Finance | Bakyt Sydykov,<br> Minister of Economy and Commerce |
| Lao PDR | Santiphab Phomvihane,<br> Minister of Finance | Soulivath Souvannachoumkham,<br> Deputy Minister of Finance |
| Liberia | Augustine Kpehe Ngafuan,<br> Minister of Finance and Development Planning | Dehpue Y. Zuo,<br> Deputy Minister of Finance and Economic Management |
| Libya | Naji Mohamed Belgasem,<br> Governor of Central Bank of Libya | Moftah Ali Suliaman,<br> Director of the Financial Market, Central Bank of Libya |

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| | | |
|:---|:---|:---|
| **Member** | **Governor and Current Position with Member** | **Alternate and Current Position with Member** |
| Luxembourg | Gilles Roth,<br> Minister of Finance | Sofia Tilotta,<br> Deputy Director of the Department of Multilateral Affairs, Development and Compliance |
| Madagascar | Herinjatovo Aimé Ramiarison,<br> Minister of Economy and Finance | Ratsiavahana Mbinison Dorette,<br> Director General of Public Treasury |
| Malaysia | Anwar Ibrahim,<br> Minister of Finance | Johan Mahmood Merican,<br> Secretary General of Treasury |
| Maldives | Moosa Zameer,<br> Minister of Finance and Planning | Abdulla Muththalib,<br> Minister of Construction and Infrastructure |
| Malta | Clyde Caruana,<br> Minister for Finance | Paul Zahra,<br> Permanent Secretary at the Ministry for Finance |
| Mongolia | Javkhlan Bold,<br> Minister of Finance | Ganbat Jigjid,<br> State Secretary of Ministry of Finance |
| Morocco | Nadia Fettah,<br> Minister of Economy and Finance | Faouzia Zaâboul,<br> Director of Treasury and External Finance of the Ministry of Economy and Finance |
| Mauritania | Sid' Ahmed Ould Bouh,<br> Minister of Economy and Finance | Fatimetou Horma,<br> Advisor to Minister |
| Myanmar | Soe Win,<br> Union Minister for Planning and Finance | Maung Maung Win,<br> Deputy Minister for Planning and Finance |
| Nauru | David W.R. Adeang,<br> President and Minister of Finance | John R. Petersen,<br> Adviser to the President of Nauru |
| Nepal | Rameshore Prasad Khanal,<br> Finance Minister of Government of Nepal | Ghanshyam Upadhyaya,<br> Secretary of the Ministry of Finance |
| Netherlands | Eelco Heinen,<br> Minister of Finance | Jasper Wesseling,<br> Treasurer-General at the Ministry of Finance |
| New Zealand | Nicola Willis,<br> Minister of Finance | Iain Rennie,<br> Secretary and Chief Executive |
| Norway | Stine Renate Håheim,<br> State Secretary, Ministry of Foreign Affairs | Harriet Veddegjerde Solheim,<br> Director of Section for Multilateral Development Bank, Ministry of Foreign Affairs |

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| | | |
|:---|:---|:---|
| **Member** | **Governor and Current Position with Member** | **Alternate and Current Position with Member** |
| Oman | Abdulsalam Al Murshidi,<br> President of Oman Investment Authority | Thuriya Al Balushi,<br> Manager of Economic Diversification Investments |
| Pakistan | Ahad Khan Cheema,<br> Federal Minister for Economic Affairs | Muhammad Humair Karim,<br> Secretary, Economic Affairs Division |
| Papua New Guinea | Ian Ling-Stuckey,<br> Minister for Treasury | Andrew Oaeke,<br> Secretary for Treasury |
| Peru | Denisse Azucena Miralles Miralles,<br> Minister of Economy and Finance | Rodolfo Acuña Namihas,<br> Vice Minister of Finance |
| Philippines | Frederick D. Go,<br> Acting Secretary, Department of Finance | Joven Z. Balbosa,<br> Department of Finance Undersecretary |
| Poland | Andrzej Domański,<br> Minister of Finance and Economy | Paweł Siwek,<br> Director of the International Cooperation Department, Ministry of Finance |
| Portugal | Joaquim Miranda Sarmento,<br> Minister of State and Finance | Nuno Sampaio,<br> Secretary of State for Cooperation and Foreign Affairs |
| Qatar | Ali bin Ahmed Al-Kuwari,<br> Minister of Finance | Khalaf Ahmed Al Mannai,<br> Undersecretary of the Ministry of Finance |
| Romania | Florin-Alexandru Zaharia,<br> State Secretary, Ministry of Finance | Boni Florinela Cucu,<br> General Director, Ministry of Public Finance |
| Russia | Maksim Reshetnikov,<br> Minister of Economic Development | Ivan Chebeskov,<br> Deputy Minister of Finance |
| Rwanda | Yusuf Murangwa,<br> Minister of Finance and Economic Planning | Linda Mutesi Rusagara,<br> Minister of State in charge of<br> Public Investment and Resource Mobilization, Ministry of Finance and Economic Planning |
| Samoa | Mulipola Anarosa Ale Molioo,<br> Minister of Finance | Saoleititi Maeva Betham—Vaai,<br> Chief Executive Officer, Ministry of Finance |
| Saudi Arabia | Mohammed Al-Jadaan,<br> Minister of Finance | Khalid Sulaiman Alkhudairy,<br> Vice Chairman & Managing Director |
| Serbia | Siniša Mali,<br> Minister of Finance | Peđa Sovilj,<br> Adviser of the Prime Minister for Infrastructure |

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| | | |
|:---|:---|:---|
| **Member** | **Governor and Current Position with Member** | **Alternate and Current Position with Member** |
| Singapore | Indranee Rajah,<br> Minister in the Prime Minister's Office, Second Minister for Finance and Second Minister for National Development | Lai Chung Han,<br> Permanent Secretary (Finance) |
| South Africa | Enoch Godongwana,<br> Minister of Finance | Duncan Pieterse,<br> Director-General of National Treasury |
| Spain | Carlos Cuerpo Caballero,<br> Minister for Economy, Trade and Enterprise | Paula Conthe Calvo,<br> Secretary General of the Treasury and International Financing |
| Sri Lanka | Anura Kumara Dissanayake,<br> Minister for Finance, Economic Development, Policy Formulation, Planning and Tourism | Harshana Suriyapperuma,<br> Secretary to the Ministry of Finance, Planning and Economic Development |
| Sudan | Gibril Ibrahim Mohamed,<br> Minister of Finance and Economic Planning | Amna Mirghani Hassan Altom,<br> Governor of the Central Bank of Sudan |
| Sweden | Elisabeth Svantesson,<br> Minister for Finance | Johanna Lybeck Lilja,<br> State Secretary to the Minister for Finance |
| Switzerland | Pietro Lazzeri,<br> Head of Economic Cooperation and Development, State Secretariat for Economic Affairs (SECO) | Arno Wicki,<br> Assistant Director General, Head of the Asia–Americas Division, Swiss Agency for Development and Cooperation (SDC) |
| Tajikistan | Sulton Rahimzoda,<br> Chairman of the State Committee on Investments and State Property Management | Ismoilzoda Khurshed Ismoil,<br> Head of Department of Strategic Planning and Reforms of the Executive office of the President |
| Tanzania | Mwigulu Lameck Nchemba Madelu (MP),<br> Minister for Finance | Natu El-maamry Amir Mwamba,<br> Permanent Secretary, Ministry of Finance |
| Thailand | Ekniti Nitithanprapas,<br> Minister of Finance | Lavaron Sangsnit,<br> Permanent Secretary of the Ministry of Finance |
| Timor-Leste | Santina José Rodrigues Ferreira Viegas Cardoso,<br> Minister of Finance |  |
| Togo | Essowè Georges Barcola,<br> Minister of Economy and Finance | Ekpao Adjabo,<br> Director General of Treasury and Public Accounting |

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| | | |
|:---|:---|:---|
| **Member** | **Governor and Current Position with Member** | **Alternate and Current Position with Member** |
| Tonga | Lataifaingata'a Tangimana,<br> Minister of Finance | Kilisitina Moala-Tuaimei'api,<br> Chief Executive Officer, Ministry of Finance |
| Tunisia | Samir Abdelhafidh,<br> Minister of Economy and Planning | Emna Araar Guesmi,<br> Director General for European Cooperation |
| Türkiye | Mehmet Şimşek,<br> Minister of Treasury and Finance | Osman Çelik,<br> Deputy Minister of Treasury and Finance |
| United Arab Emirates | Sultan Al Jaber,<br> Minister of Industry and Advanced Technology | Mohammed Saif Al Suwaidi,<br> Director General of Abu Dhabi Fund for Development |
| United Kingdom | Rachel Reeves,<br> Chancellor of the Exchequer | Lindsey Whyte,<br> Director General International Finance, H.M. Treasury |
| Uruguay | Gabriel Oddone,<br> Minister of Economy and Finance | Martin Vallcorba,<br> Undersecretary of the Ministry of Economy and Finance |
| Uzbekistan | Laziz Kudratov,<br> Minister of Investment, Industry and Trade | Ilkhom Umrzakov,<br> Deputy Minister of the Economy and Finance |
| Vanuatu | John Dahmasing Salong,<br> Minister of Finance and Economic Management | Letlet August,<br> Director General, Ministry of Finance and Economic Affairs |
| Viet Nam | Nguyen Thi Hong,<br> Governor of State Bank of Viet Nam | Nguyen Ngoc Canh,<br> Deputy Governor of State Bank of Viet Nam |

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**Board of Directors** 

The Board of Directors is responsible for the direction of the Bank's general operations through the exercise of powers delegated to it by the Board of Governors, in addition to those expressly assigned to it by the Articles of Agreement. Matters before the Board of Directors are decided by a majority vote, except as otherwise provided in the Articles of Agreement.

In addition to any powers delegated by the Board of Governors, the Board of Directors shall (i) prepare the work of the Board of Governors; (ii) establish policies of the Bank and, with a majority representing not less than three-fourths of the total voting power of the members, take decisions on major operational and financial policies and on delegation of authority to the President under Bank policies; (iii) take decisions concerning operations of the Bank and, with a majority representing not less than three-fourths of the total voting power of the members, decide on the delegation of such authority to the President; (iv) supervise the management and operation of the Bank and establish an oversight mechanism for that purpose; (v) approve the strategy, annual plan and budget of the Bank; (vi) appoint committees; and (vii) submit the annual audited accounts for approval of the Board of Governors.

The Board of Directors consists of 12 members who are not members of the Board of Governors. Nine are elected by the Governors representing regional members, and three are elected by the Governors representing non-regional members. Each Director is elected by the Governors of a constituency, which is a group of members with a minimum aggregate voting power. At the most recent election in June 2024, the minimum aggregate voting power

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was 5% for constituencies electing regional Directors and 8% for constituencies electing non-regional Directors. Although the Bank has no mandated single-member constituencies and constituencies may be formed through agreements among members themselves, at the June 2024 election of Directors, each of Russia, India and China had the voting power to elect one of the 12 members of the Board of Directors. Each Director appoints an Alternate Director (or two Alternate Directors in respect of those Directors casting votes for five or more members) who may participate in the meetings, but who has the full power to act only when the Director is not present. The Directors, who serve the Bank on a non-resident basis, hold office for two-year terms and may be re-elected. They also must be nationals of member jurisdictions and persons of high competence in economic and financial matters. The Articles of Agreement further specify that the nomination and voting by Governors for Directors and the appointment of Alternate Directors by Directors shall respect the principle that each founding member shall have the privilege to designate the Director or an Alternate Director in its constituency permanently or on a rotating basis.

The Board of Directors was composed of the following members as of February 28, 2026:

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| | | |
|:---|:---|:---|
| **Name** | **Alternates** | **Constituency Members<sup>(1)</sup>** |
| Abdulmuhsen S. Alkhalaf<br> (Saudi Arabia) | Ali Humaid Al Derei<br> (United Arab Emirates)<br>Mohd Abdullah Al-Hashmi<br> (Qatar) | Bahrain<br> Djibouti<br> Iraq<br>Jordan<br>Kuwait<br>Oman<br>Qatar<br>Saudi Arabia<br>United Arab Emirates |
| Bengü Aytekin<br>(Türkiye) | Miran Mohiyuddin Soomro<br> (Pakistan)<br>Inara Mustafayeva-Ayyubova<br> (Azerbaijan) | Azerbaijan<br>Brunei Darussalam<br>Georgia<br>Kyrgyzstan<br>Pakistan<br>Türkiye |
| Rit Syamananda<br> (Thailand) | Mirana Mahrukh<br> (Bangladesh)<br>Donalyn U. Minimo<br> (Philippines) | Bangladesh<br>Malaysia<br>Maldives<br>Nepal<br>Philippines<br>Thailand |
| Pavel Snisorenko<br>(Russia) | Hossein Kashiri<br> (Iran)<br>Saadat Assanseitova<br> (Kazakhstan) | Belarus<br> Iran<br>Kazakhstan<br>Russia<br> Tajikistan |
| Junhong Chang<br>(China) | Jin Lu<br>(China) | China<br>Hong Kong, China |

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| | | |
|:---|:---|:---|
| **Name** | **Alternates** | **Constituency Members<sup>(1)</sup>** |
| Alaa Abdel-Rahman<br>(Egypt) | Camila Maia Carneiro Costa<br>(Brazil) | Algeria<br>Argentina<br> Benin<br> Brazil<br> Chile<br>Egypt<br>Ethiopia<br>Ghana<br> Liberia<br> Libya<br>Madagascar<br> Morocco<br> Peru<br> Rwanda<br> South Africa<br>Sudan<br> Tanzania<br> Togo<br>Tunisia<br>Uruguay<br>|
| Craig Murphy<br> (New Zealand) | James Hunter<br>(Australia) | Australia<br>Cook Islands<br>Nauru<br>New Zealand<br>Papua New Guinea<br>Singapore<br>Viet Nam |
| Mark Collins<br>(United Kingdom) | Stefan Denzler<br> (Switzerland)<br>Ellen Sandahl<br> (Sweden) | Denmark<br> Hungary<br> Iceland<br> Norway<br> Poland<br> Romania<br> Serbia<br> Sweden<br> Switzerland<br> United Kingdom |

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| | | |
|:---|:---|:---|
| **Name** | **Alternates** | **Constituency Members<sup>(1)</sup>** |
| Dominik Wallau<br> (Germany) | Antonio Adinolfi<br> (Italy)<br>Maël Forcier<br> (France) | Austria<br> Belgium<br> Croatia<br> Cyprus<br> Finland<br> France<br> Germany<br> Greece<br> Ireland<br> Italy<br> Luxembourg<br> Malta<br> Netherlands<br> Portugal<br> Spain |
| Anu P Mathai<br> (India) | Prasanna V. Salian<br> (India) | India |
| Masyita Crystallin<br> (Indonesia) | Hemantha Pubudusiri<br> (Sri Lanka)<br>Thirong Pen<br> (Cambodia) | Cambodia<br> Indonesia<br> Lao PDR<br> Sri Lanka<br> Timor-Leste |
| Jisung Moon<br> (Korea) | Munesh Deo<br> (Fiji)<br>Asaf Shirman<br> (Israel) | Fiji<br> Israel<br> Korea<br> Mongolia<br> Samoa<br> Tonga<br> Uzbekistan |

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Note:

(1) As of February 28, 2026, Armenia, Canada, Côte d'Ivoire, Ecuador, El Salvador, Guinea, Kenya,
Mauritania, Senegal, Solomon Islands, Tanzania and Vanuatu have not assigned their respective votes.

Biographical information for each Director is included below.

***Mr. Abdulmuhsen S. Alkhalaf – Director***

Mr. Alkhalaf has been a member of the Board of Directors since September 23, 2022. He currently holds the position of Vice Minister in the Saudi Ministry of Finance and is the Sherpa for Saudi Arabia to the G20. Mr. Alkhalaf oversees Saudi Arabia's memberships in international financial institutions, including the International Monetary Fund ("IMF"), the World Bank Group, the IsDB and the Arab Monetary Fund. Prior to his current position, Mr. Alkhalaf served as a member of the Board of Directors of the World Bank Group and was the chair of the Audit Committee of the World Bank Group (2020-2022).

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***Ms. Bengü Aytekin – Director***

Ms. Aytekin has been reappointed as a member of the Board of Directors since January 1, 2026. She previously served, beginning on December 21, 2022, at various times as a Director, Alternate Director and Advisor to a Director. She currently holds the position of Deputy Director-General for Foreign Economic Relations, Turkish Ministry of Treasury and Finance, overseeing Türkiye's engagement with MDBs. She also serves as Türkiye's Alternate Deputy to the Coalition of Finance Ministers for Climate Action and Türkiye's focal point for Climate Investment Funds. Prior to her current position, Ms. Aytekin served as the Head of Department for Multilateral Development Banks at the Directorate General of Foreign Economic Relations, Turkish Ministry of Treasury and Finance (2014-2022).

***Mr. Rit Syamananda – Director***

Mr. Rit has been a member of the Board of Directors since July 1, 2024. He currently holds the position of Deputy Director General of the Fiscal Policy Office, Ministry of Finance of Thailand. In this capacity, Mr. Rit is responsible for the international affairs of the Ministry of Finance and oversees Thailand's participation in MDBs, including AIIB, the World Bank and ADB. He also is responsible for Thailand's cooperation with bilateral partners and multilateral organizations, including the Association of Southeast Asian Nations ("ASEAN"), ASEAN+3 and the Asia-Pacific Economic Cooperation, as well as liberalization of financial services in Thailand. Mr. Rit has held various positions in the Government of Thailand.

***Mr. Pavel Snisorenko – Director***

Mr. Snisorenko has been a member of the Board of Directors since July 15, 2021. He currently serves as the Head of the Department for International Financial Relations at the Ministry of Finance of the Russian Federation. He also serves as a member of the Board of Directors of the International Investment Bank, as Deputy Director of the Board of Directors of NDB and as Chair of the Expert Council at the Eurasian Fund for Stabilization and Development. Prior to his current position, Mr. Snisorenko served as Director of the Department for Analytical Support of Foreign Economic Activity at the Ministry of Economic Development of the Russian Federation (2019-2020). Mr. Snisorenko has also served at the Executive Boards of the World Bank and the IMF (2013-2019) and has held various positions at the Central Bank of Russia (2005-2013).

***Ms. Junhong Chang – Director***

Ms. Chang has been a member of the Board of Directors since February 8, 2025. She currently holds the position of Director General, Department of International Economic and Financial Cooperation, Ministry of Finance, China. Prior to her current position, Ms. Junhong served as Executive Director for China at the World Bank Group and, in that role, served as Co-Dean of the Board, Vice Chair of the Audit Committee and member of the Committee on Governance and Executive Directors' Administrative Matters at the World Bank Group (2020-2025). Ms. Chang previously served as Director of the ASEAN+3 Macroeconomic Research Office (2016-2019). Ms. Junhong has held various positions in the Ministry of Finance of China.

***Mr. Alaa Abdel-Rahman – Director***

Mr. Abdel-Rahman has been a member of the Board of Directors since November 8, 2024. He currently serves as the advisor to Egypt's Minister of Finance for International Financial Institutions and manages the relationship between the Ministry of Finance and international and other financial institutions, including the IMF, AIIB, credit rating agencies and investment banks. Mr. Alaa also serves as senior economist at the Macro-Fiscal Policy Unit at the Ministry of Finance of Egypt and supervises the macro-fiscal framework at the Macro-Fiscal Policy Unit, focusing in particular on the Ministry of Finance's fiscal framework.

***Mr. Craig Murphy – Director***

Mr. Murphy has been a member of the Board of Directors since July 1, 2024. He is an official in the New Zealand Treasury and has considerable experience working on various significant issues for the New Zealand Treasury. Prior to joining the New Zealand Treasury, Mr. Murphy worked in ANZ's institutional banking division for six years.

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***Mr. Mark Collins – Director***

Mr. Collins has been a member of the Board of Directors since July 1, 2024. He currently serves as a senior official at HM Treasury, the economic and finance ministry of the United Kingdom, where he has held various roles. He has also served as the United Kingdom G7 and G20 Sherpa assistant and a senior policy advisor on foreign and international economic affairs at the United Kingdom's Cabinet Office (the ministry supporting the Prime Minister of the United Kingdom).

***Mr. Dominik Wallau – Director***

Mr. Wallau has been a member of the Board of Directors since July 1, 2025. He currently holds the position of Financial Counsellor at the Embassy of Germany in Beijing and is responsible for Sino-German financial policy relations. Prior to his current position, Mr. Wallau served as Financial Counsellor at the Embassy of Germany in New Delhi, India. He has also held other positions in the German government, including in the Federal Budget Department, the Department for Political Staff and Communication, the Department for Federal Financial Relations between federal and state governments in Germany and the Department for Economic and Fiscal Policy Strategy.

***Ms. Anu P Mathai - Director***

Ms. Mathai has been a member of the Board of Directors since September 6, 2025. She currently holds the position of Additional Secretary, Department of Economic Affairs, Ministry of Finance of India, in charge of the Other Multilateral Institutions and International Economic Relations divisions. She also handles matters related to BRICS, G7, G-24, the Shanghai Cooperation Organization, Global Sovereign Debt Roundtable, Paris Pact for People and the Planet and the Voice of Global South Summit. Additionally, Ms. Mathai oversees externally aided projects, policy, and governance matters related to international financial institutions such as AIIB, NDB, International Fund for Agricultural Development ("IFAD"), EBRD, AfDB, and the OPEC Fund for International Development. She also currently serves as Alternate Governor at IFAD, Director on the NDB Board and Governing Council Member of the Africa Digital Financial Inclusion Facility.

***Ms. Masyita Crystallin– Director***

Ms. Crystallin has been a member of the Board of Directors since July 12, 2025. She currently holds the position of Director General of Financial Sector Stability and Development in the Ministry of Finance of Indonesia and is responsible for international cooperation to support international trade, investment and finance through multilateral, regional, bilateral and sustainable financial cooperation. Ms. Crystallin has held other positions in the Ministry of Finance of Indonesia (2020-2025), served as a member of the initial team that established the Indonesia Investment Authority ("INA"), served as Spokesperson and Secretary of the INA Supervisory Board until 2024, and served as an Expert Staff to the Coordinating Minister for Maritime Affairs of Indonesia (2016-2017).

***Mr. Jisung Moon – Director***

Mr. Moon has been a member of the Board of Directors since August 9, 2024. He currently holds the position of Director General for the Development Finance Bureau at the Ministry of Economy and Finance of Korea. Prior to his current position, Mr. Moon served as the Deputy Director General for the International Finance Bureau at the Ministry of Economy and Finance of Korea (2023-2024). He has also held other positions in the Ministry of Economy and Finance of Korea (2016-2019), served as a senior economist at IBRD (2019-2022) and served as advisor to the Executive Director at the IMF (2009-2014).

**Board Committees** 

***Audit and Risk Committee***

The role of the Audit and Risk Committee is to (i) review the Bank's financial statements and accounting, auditing and financial reporting practices, procedures and issues; (ii) review the selection procedures for and the qualification and performance of the external auditors and review the reports from the external auditors and ensure appropriate action be taken in respect of major improvement areas identified; (iii) review the scope of work and internal audit plan and the effectiveness of the internal audit function; (iv) review the effectiveness of internal control

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systems; (v) review the Bank's financial and risk-related policies, including the Bank's Financial and Risk Management Framework and RAS; and (vi) receive reports on violations of the Bank's Policy on Prohibited Practices from the Managing Director of the Bank's Complaints-resolution, Evaluation and Integrity Unit.

The Audit and Risk Committee is composed of at least three and up to four Directors and two external members (appointed by the President in consultation with the Board of Directors). The current members of this committee are Masyita Crystallin (vice chair), Craig Murphy (chair), Pavel Snisorenko, Dominik Wallau and Teresa Lin (external member).

***Budget and Human Resources Committee***

The role of the Budget and Human Resources Committee (the "BHR Committee") is to (i) review the proposed annual administrative budget, taking into account the Bank's annual business plan, and review the quarterly budget execution update and report thereon to the Board of Directors; (ii) review and assess the implementation of staffing strategies, compensation and benefits policies and related issues periodically and make recommendations to the Board of Directors as appropriate; (iii) review the human resources update report semi-annually; (iv) undertake the functions required of it pursuant to the Code of Conduct for Board Officials (the "Code of Conduct"), including considering matters relating to the implementation, interpretation and application of the Code of Conduct and requests for guidance concerning conflicts of interest, annual financial disclosures or other ethical aspects of conduct, as well as allegations of misconduct under the Code of Conduct; (v) receive summaries of any administrative review decision issued under Staff Rule 8.01 (relating to staff employment administrative review procedures); (vi) consider any other aspects of the annual administrative budget and the Bank's human resources as the Board of Directors may request and report thereon to the Board of Directors; and (vii) receive briefings on significant actions proposed by the President under the Bank's Policy on Compensation and Benefits, prior to implementation of the proposed actions.

The BHR Committee is composed of at least four and up to six Directors. The current members of this committee are Mark Collins (chair), Anu P Mathai, Jisung Moon, Craig Murphy, Rit Syamananda (vice chair) and Dominik Wallau.

***Policy and Strategy Committee***

The role of the Policy and Strategy Committee (the "P&S Committee") is to (i) review the Bank's operational policies (other than financial and risk-related policies), including but not limited to environmental, social and procurement policies, and report thereon to the Board of Directors; (ii) advise on the development of the Bank's strategies and report thereon to the Board of Directors; (iii) review the proposed annual business plan, taking into account the annual administrative budget, and report thereon to the Board of Directors; (iv) undertake any other activities consistent with its terms of reference as the Board of Directors may request and report thereon to the Board of Directors; and (v) receive updates on the findings of project evaluations, and requests filed by project-affected people under the PPM, as part of the Bank's oversight mechanism.

The P&S Committee is composed of at least four and up to six Directors. The current members of this committee are Alaa Abdel-Rahman, Bengü Aytekin, Abdulmuhsen S. Alkhalaf, Junhong Chang (chair), Mark Collins, and Anu P Mathai (vice chair).

**Senior Management** 

The President, who serves as the legal representative of the Bank, is elected by a Super Majority Vote. The President must be a national of a regional member jurisdiction and may not be a Governor, a Director or an alternate for either. The term of office of the President is five years with the possibility of one additional term. The President is the Chair of the Board of Directors, but has no vote other than a tie-breaking vote. The President may also participate in the meeting of the Board of Governors, but has no vote. The President is supported by a team of senior management. The team currently includes four Vice Presidents who are responsible for the Corporate Secretariat, Administration, Policy and Strategy, and Investment Solutions. Vice Presidents are appointed by the Board of Directors upon the recommendation of the President. Senior management also includes two Chief Investment Officers, the Acting Chief Financial Officer and Treasurer, the Chief Risk Officer, the Chief Partnerships Officer, the Chief Economist and the General Counsel.

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The President has the authority to establish management committees. Such committees perform a variety of functions, and currently include the following: (i) the Executive Committee; (ii) the Investment Committee; (iii) the Special Fund Committee; (iv) the Human Resources Review Committee; (v) the Risk Committee; (vi) the Corporate Procurement Committee; (vii) the Asset and Liability Management Committee; (viii) the Project Screening Committee; and (ix) the Strategic Information Technology Committee.

The President, officers and staff of the Bank, in the discharge of their offices, are responsible solely to the Bank and may not recognize any other authority. The members are obligated to respect the international character of this obligation. Moreover, the Bank, its President, officers and staff may not interfere in the political affairs of any members nor be influenced in their decisions by the political character of any member. Senior management is currently composed of the following individuals:

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| | |
|:---|:---|
| **Name** | **Title** |
| Ms. Zou Jiayi | President |
| Sir Sherard Cowper-Coles | Vice President and Corporate Secretary |
| Ms. Kaisu Christie | Vice President and Chief Administration Officer |
| Dr. Ludger Schuknecht | Vice President, Policy and Strategy |
| Mr. Ajay Bhushan Pandey | Vice President, Investment Solutions |
| Ms. Kim-See Lim | Chief Investment Officer, Public Sector (Region 1) & Financial Institutions and Funds (Global) Clients |
| Mr. Konstantin Limitovskiy | Chief Investment Officer, Public Sector (Region 2) & Project and Corporate Finance (Global) Clients |
| Mr. Domenico Nardelli | Acting Chief Financial Officer and Treasurer |
| Mr. Antoine Castel | Chief Risk Officer |
| Mr. Hun Kim | Chief Partnerships Officer and Director General, Sectors, Themes and Finance Solutions Department |
| Dr. Erik Berglof | Chief Economist |
| Mr. Alberto Ninio | General Counsel |

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Biographical information for each member of senior management is included below.

***Ms. Zou Jiayi – President***

Ms. Zou Jiayi is the President and Chair of the Board of Directors. Prior to her election as the Bank's second president, Ms. Jiayi served as the Deputy Secretary-General of the National Committee of the Chinese People's Political Consultative Conference. Ms. Jiayi is an experienced leader with over three decades of experience with global financial policy at the highest levels. She has held senior roles in the Ministry of Finance of China, including Assistant Minister of Finance, overseeing international affairs, and Vice Minister of Finance, responsible for financial affairs, tariff policies and international cooperation. Ms. Jiayi represented China as Alternate Governor for the World Bank Group, ADB, AIIB, and NDB and as Governor for IFAD. Ms. Jiayi played a pivotal role in the establishment of AIIB when she served as Director-General of the International Department and the Department of International Economic Relations at the Ministry of Finance of China. She has also served as World Bank Executive Director for China and Co-dean of the Board of Executive Directors of the World Bank. Ms. Jiayi is a national of China.

***Sir Sherard Cowper-Coles – Vice President and Corporate Secretary***

Sir Sherard Cowper-Coles is responsible for the Bank's relations with its members, the Board of Governors, the Board of Directors, and other aspects of governance, including the admission of new members and the integrity of the Bank's governance. He also oversees the Bank's communications with key external stakeholders and supervises the Bank's awareness-building and brand and reputation management efforts to promote understanding of the Bank's operations and mission among internal and external audiences. Sir Cowper-Coles has extensive strategic, management, policy development and commercial experience, and has held leadership roles in both the private sector and in senior diplomatic positions. Prior to joining AIIB in December 2025, he was Senior Adviser at HSBC Holdings. Sir Cowper-Coles is a national of the United Kingdom.

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***Ms. Kaisu Christie – Vice President and Chief Administration Officer***

Ms. Kaisu Christie oversees human resources, information technology and facilities and administration services at the Bank. She also chairs the Strategic Information Technology Committee and the Human Resources Review Committee, ensuring the alignment of AIIB's internal capabilities with its strategic objectives. Ms. Christie has over two decades of global leadership experience in organizational transformation, digital innovation and strategic human capital development across multilateral institutions and in the private sector in banking, energy and telecommunications. Prior to joining AIIB in July 2025, she was Deputy Director General and Group Chief Digital Officer at the European Investment Bank Group, and Senior Vice President of Mortgages, Real Estate and Collateral Management at OP Financial Group. Ms. Christie is a national of Finland and Australia.

***Dr. Ludger Schuknecht – Vice President, Policy and Strategy***

Dr. Ludger Schuknecht is responsible for the Bank's strategic agenda, oversees the Bank's environmental, social, fiduciary and international relations policies, and manages the Bank's administrative budget. Prior to his current role, Dr. Schuknecht served as Vice President and Corporate Secretary of the Bank. Prior to joining AIIB in August 2021, among other roles, Dr. Schuknecht was Deputy Secretary-General at the Organisation for Economic Co-operation and Development and Chief Economist and Director General at the Federal Ministry of Finance of Germany. He has extensive experience working with international financial institutions, including the IMF and the World Trade Organization. Dr. Schuknecht is a national of Germany.

***Mr. Ajay Bhushan Pandey – Vice President, Investment Solutions***

Mr. Ajay Bhushan Pandey leads and oversees three key departments of the Bank: the Sectors, Themes, and Finance Solutions ("STF") Department; the Sustainability and Fiduciary Solutions Department and the Portfolio Management Department. Prior to joining AIIB in April 2025, Mr. Pandey served in prominent leadership roles within the Government of India for over three decades and was pivotal in shaping India's digital and financial infrastructure through transformative initiatives. Mr. Pandey is a national of India.

***Ms. Kim-See Lim* – *Chief Investment Officer, Public Sector (Region 1) & Financial Institutions and Funds (Global) Clients*** 

Ms. Kim-See Lim oversees the Bank's investment operations with public sector clients in South Asia (except Afghanistan and Pakistan), South East Asia, the Pacific Islands and Sub-Saharan Africa. She also oversees the Bank's investment operations with financial institutions and funds clients in all members of the Bank. Ms. Lim is a global development leader with three decades of experience at IFC and the World Bank Group and in the private sector. Prior to joining AIIB in July 2025, Ms. Lim worked at IFC in various capacities, most recently as Regional Director for East Asia and the Pacific, where she oversaw the formulation and implementation of IFC's investment strategy and advisory business in East Asia and the Pacific. She also helped establish IFC Asset Management Company, LLC, IFC's first subsidiary, and served as its Principal and Investment Committee Member, where she successfully raised capital from global sovereign wealth funds and an institutional investors for a US$1 billion Africa and Latin America Fund. Ms. Lim is a national of Malaysia.

***Mr. Konstantin Limitovskiy – Chief Investment Officer, Public Sector (Region 2) & Project and Corporate Finance (Global) Clients***

Mr. Konstantin Limitovskiy oversees the Bank's investment operations with public sector clients in Pakistan, Afghanistan, Central, Eastern, and Western Asia, Europe, the Middle East, North Africa and Latin America. He also oversees the Bank's investment operations with project and corporate finance clients, focusing on private infrastructure and other productive sectors in all Bank members. Prior to his current position, he served in several managerial roles at the Bank including Vice President for Investment Clients Region 2 and Project and Corporate Finance (Global), and Chief Programming Officer and Senior Advisor to the President. He joined AIIB in 2018 from the Eurasian Development Bank, where he was Deputy Chairman responsible for operations in infrastructure. Prior to that, among other roles, Mr. Limitovskiy managed international project and structured finance at VTB Group, Gazprombank and Alfa Bank in Russia and led activities in infrastructure finance at the Black Sea Trade and Development Bank, an MDB headquartered in Greece. Mr. Limitovskiy is a national of Russia.

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***Mr. Domenico Nardelli – Acting Chief Financial Officer and Treasurer***

Mr. Domenico Nardelli leads the Bank's controller and treasury functions, and the development of new financial products and services, among other projects. He also serves concurrently as Treasurer of the Bank. Prior to joining AIIB in September 2019, he was Treasurer of the IFAD. Mr. Nardelli has extensive experience in asset and liability management, capital markets and financial markets policy issues. Mr. Nardelli is a national of Italy.

***Mr. Antoine Castel – Chief Risk Officer***

Mr. Antoine Castel leads the risk management function and is responsible for the stability and financial continuity of AIIB. Prior to joining AIIB, Mr. Castel served in various financial markets management positions at Société Générale S.A., including as Country Head in India (2018-2020) and as Deputy Chief Executive Officer in China (2017). In his most recent role prior to joining AIIB as Country Head of Société Générale S.A. in India, he was particularly active in aligning that institution's credit portfolio and raising its renewable structured financing platform, as well as leading the sound development of its footprint in financial markets. He also has extensive other commercial and investing banking experience across Asia, Africa and Europe. Mr. Castel is a national of France.

***Mr. Hun Kim – Chief Partnerships Officer and Director General, Sectors, Themes and Finance Solutions Department***

Mr. Hun Kim leads the development, management and growth of the Bank's strategic partnerships, mobilizes resources, fosters collaborative relationships with global stakeholders and oversees the coordination of the Bank's multifunctional hub office in Abu Dhabi, United Arab Emirates, and any other hub offices that the Bank establishes. He also serves concurrently as Director General of the STF Department. Prior to this position, he played a pivotal role in building the Bank's social infrastructure portfolio, which has grown significantly since it was established in 2021. Prior to joining AIIB in March 2021, Mr. Kim had a long and successful career at ADB, where he held various leadership positions. Mr. Kim is a national of Korea.

***Dr. Erik Berglof – Chief Economist***

Dr. Erik Berglof sets the strategy for AIIB's Economics Department and leads the planning, implementation and supervision of its work plan in support of the Bank's mandate. Prior to joining AIIB in September 2020, he was Director of the Institute of Global Affairs at the London School of Economics and Chief Economist of EBRD (2006-2015), where he was part of creating and co-leading the Vienna Initiative, a European crisis response team credited with mitigating the impact of the 2008 Global Financial Crisis. He has extensive experience in transition economics and institutional transformation through private sector development. Dr. Berglof is a national of Sweden.

***Mr. Alberto Ninio – General Counsel***

Mr. Alberto Ninio is responsible for the legal aspects of the Bank's work. Prior to his appointment as General Counsel of the Bank in January 2021, he was Director General of the Operational Services Department of the Bank and led the operational support teams in the areas of environment, social, procurement and financial management. Prior to joining AIIB in March 2020, Mr. Ninio served in a variety of senior roles both at the World Bank, where he left as its Deputy General Counsel for Operations, and, more recently, at Vale S.A., a multinational mining and logistics corporation based in Brazil, where he served as its Global Sustainability Director. He has over 30 years of experience in the fields of international development, environmental law and corporate responsibility. Mr. Ninio is a national of Brazil.

**International Advisory Panel** 

The International Advisory Panel (the "IAP") provides management with support on the Bank's strategies and policies as well as on general operational issues. Members of the IAP, who are appointed to two-year terms, bring years of experience and a wide range of professional expertise in both the public and private sectors. The IAP meets at least twice a year, including one meeting held alongside the Bank's Annual Meeting of the Board of Governors. The IAP is currently composed of the following members:

------

---

| | |
|:---|:---|
| **Name** | **Biographical information** |
| Iwan Azis | Adjunct Professor, Cornell University |
| Rachel Biderman | Senior Vice President, South America Field Division, Conservation International |
| Ha-Joon Chang | Professor, SOAS University of London |
| Ahmed Galal | Former Minister of Finance, Egypt |
| Yukon Huang | Senior Fellow, Asia Program, Carnegie Endowment for International Peace |
| Naoko Ishii | Special Presidential Envoy for Global Commons, University of Tokyo; Professor and Director of the Center for Global Commons |
| Mari Kiviniemi | Former Prime Minister of Finland; Chair of the Board of the University of Vaasa |
| Nargiz Nasrullayeva | Former President of the American Chamber of Commerce and Former Principal Advisor to CEO of the Sovereign Wealth Fund of Azerbaijan |

---

**Employees** 

As of December 31, 2025, the Bank had a total of 736 professional staff, who were from 82 jurisdictions (67.5% regional and 32.5% non-regional).

------

**SELECTED DEMOGRAPHIC AND ECONOMIC DATA** 

*Certain of the following information has been extracted from publicly available sources. The Bank has not independently verified this information.* 

The following table presents selected demographic and economic data for members of the Bank that, as of December 31, 2025, have more than 3% voting power or in which the Bank has approved financings (excluding multi-country financings):

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Population<br>(in millions)<sup>(1)</sup>** | **Population<br>(in millions)<sup>(1)</sup>** | **GDP (US$ in millions)<sup>(1)</sup>** | **GDP (US$ in millions)<sup>(1)</sup>** | **GDP per capita (US$)<sup>(1)</sup>** | **GDP per capita (US$)<sup>(1)</sup>** | **Total reserves**<br> **(excluding gold) (US$in millions)<sup>(1)(2)</sup>** | **Total reserves**<br> **(excluding gold) (US$in millions)<sup>(1)(2)</sup>** | **Total external debt**<br> **(US$ in millions)<sup>(1)(3)</sup>** | **Total external debt**<br> **(US$ in millions)<sup>(1)(3)</sup>** | **Consumer price**<br> **index growth**<br> **(annual%<br>change)<sup>(1)</sup>** | **Consumer price**<br> **index growth**<br> **(annual%<br>change)<sup>(1)</sup>** |
|  | **2024** | **2023** | **2024** | **2023** | **2024** | **2023** | **2024** | **2023** | **2024** | **2023** | **2024** | **2023** |
|  Argentina | 45.7 | 45.5 | 638365.5 | 649461.7 | 13969.8 | 14261.8 | 24380.6 | 18986.8 | 146597.2 | 150066.3 | 219.9 | 133.5 |
|  Australia | 27.2 | 26.7 | 1757022.5 | 1734451.3 | 64604.0 | 65058.4 | 54455.3 | 56605.1 | 1604310.0<sup>(4)(5)</sup> | 1514701.4<sup>(4)(5)</sup> | 3.2 | 5.6 |
|  Azerbaijan | 10.2 | 10.2 | 74315.9 | 72428.5 | 7283.8 | 7133.0 | 12699.1 | 13748.8 | 11291.1 | 13667.1 | 2.2 | 8.8 |
|  Bangladesh | 173.6 | 171.5 | 450119.4 | 437415.3 | 2593.4 | 2551.0 | 20196.8 | 20928.0 | 86874.6 | 83207.5 | 10.5 | 9.9 |
|  Benin | 14.5 | 14.1 | 21482.6 | 19673.3 | 1485.4 | 1394.2 | N/A<sup>(6)</sup> | N/A<sup>(6)</sup> | 11711.1 | 10103.7 | 1.2 | 2.7 |
|  Brazil | 212.0 | 211.1 | 2185821.6 | 2191131.9 | 10310.5 | 10377.6 | 318856.5 | 346424.4 | 503614.4 | 508822.8 | 4.4 | 4.6 |
|  Cambodia | 17.6 | 17.4 | 46352.6 | 42335.6 | 2627.9 | 2429.7 | 18607.7 | 17158.4 | 16352.6 | 17823.6 | 0.8 | 2.1 |
|  China | 1409.0 | 1410.7 | 18743803.2 | 18270356.7 | 13303.1 | 12951.2 | 3264803.9 | 3301319.7 | 1066746.2 | 1111557.7 | 0.2 | 0.2 |
|  Cook Islands | 0.02<sup>(4)</sup> | 0.02<sup>(4)</sup> | N/A<sup>(6)</sup> | 366.2<sup>(4)</sup> | N/A<sup>(6)</sup> | 16954.2<sup>(4)</sup> | N/A<sup>(6)</sup> | N/A<sup>(6)</sup> | N/A<sup>(6)</sup> | N/A<sup>(6)</sup> | N/A<sup>(6)</sup> | N/A<sup>(6)</sup> |
|  Côte d'Ivoire | 31.9 | 31.2 | 87113.2 | 80780.3 | 2727.9 | 2592.0 | N/A<sup>(6)</sup> | N/A<sup>(6)</sup> | 31489.0 | 29369.8 | 3.5 | 4.4 |
|  Ecuador | 18.1 | 18.0 | 124676.1 | 121147.1 | 6874.7 | 6737.8 | 4703.2 | 2698.9 | 49817.8 | 50349.2 | 1.5 | 2.2 |
|  Egypt | 116.5 | 114.5 | 389059.9 | 395926.1 | 3338.5 | 3456.8 | 34277.8 | 24695.7 | 109859.8 | 119379.8 | 28.3 | 33.9 |
|  Fiji | 0.9 | 0.9 | 5968.1 | 5476.7 | 6425.7 | 5926.2 | 1597.0 | 1546.2 | 2605.1 | 2337.6 | 4.5 | 2.3 |
|  France | 68.6 | 68.4 | 3160442.6 | 3056250.6 | 46103.1 | 44700.1 | 78428.8 | 79200.9 | N/A<sup>(6)</sup> | N/A<sup>(6)</sup> | 2.0 | 4.9 |
|  Georgia | 3.7 | 3.7 | 34189.4 | 30777.8 | 9241.5 | 8283.7 | 3848.5 | 5002.3 | 19454.1 | 18893.8 | 1.1 | 2.5 |
|  Germany | 83.5 | 83.3 | 4685592.6 | 4562207.5 | 56103.7 | 54776.8 | 96792.0 | 100391.9 | N/A<sup>(6)</sup> | N/A<sup>(6)</sup> | 2.3 | 5.9 |

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Population<br>(in millions)<sup>(1)</sup>** | **Population<br>(in millions)<sup>(1)</sup>** | **GDP (US$ in millions)<sup>(1)</sup>** | **GDP (US$ in millions)<sup>(1)</sup>** | **GDP per capita (US$)<sup>(1)</sup>** | **GDP per capita (US$)<sup>(1)</sup>** | **Total reserves**<br> **(excluding gold) (US$in millions)<sup>(1)(2)</sup>** | **Total reserves**<br> **(excluding gold) (US$in millions)<sup>(1)(2)</sup>** | **Total external debt**<br> **(US$ in millions)<sup>(1)(3)</sup>** | **Total external debt**<br> **(US$ in millions)<sup>(1)(3)</sup>** | **Consumer<br>price**<br> **index growth**<br> **(annual%<br>change)<sup>(1)</sup>** | **Consumer<br>price**<br> **index growth**<br> **(annual%<br>change)<sup>(1)</sup>** |
|  | **2024** | **2023** | **2024** | **2023** | **2024** | **2023** | **2024** | **2023** | **2024** | **2023** | **2024** | **2023** |
|  Hong Kong, China | 7.5 | 7.5 | 406863.4 | 381043 | 54074.7 | 50562.4 | N/A<sup>(6)</sup> | 425415.9 | 1910101.0<sup>(4)(5)</sup> | 1846194.0<sup>(4)(5)</sup> | 1.7 | 2.1 |
|  Hungary | 9.6 | 9.6 | 222722.7 | 213240.3 | 23292.3 | 22230.6 | 37194 | 39453.1 | N/A<sup>(6)</sup> | N/A<sup>(6)</sup> | 3.7 | 17.1 |
|  India | 1450.9 | 1438.1 | 3909891.5 | 3638489.1 | 2694.7 | 2530.1 | 569544.3 | 574508.8 | 555307.4 | 498261.2 | 5 | 5.6 |
|  Indonesia | 283.5 | 281.2 | 1396300.1 | 1371169.3 | 4925.4 | 4876.3 | 149117.7 | 141149.4 | 347543.1 | 340524.8 | 2.2 | 3.7 |
|  Jordan | 11.6 | 11.4 | 53352.3 | 51088.5 | 4618.1 | 4466.1 | 15929 | 14349.1 | 26417.3 | 26057.8 | 1.6 | 2.1 |
|  Kazakhstan | 20.6 | 20.3 | 291480.3 | 261840.1 | 14154.6 | 12879.4 | 21979.7 | 16454.5 | 146044.7 | 150157.7 | 8.8 | 14.7 |
|  Korea | 51.8 | 51.7 | 1875388.2 | 1844800.9 | 36238.6 | 35674.1 | 409457.2 | 414004.5 | 672902.9<sup>(4)(5)</sup> | 677323.5<sup>(4)(5)</sup> | 2.3 | 3.6 |
|  Kyrgyzstan | 7.2 | 7.1 | 17478.3 | 15180.8 | 2420.2 | 2138.2 | 1890.3 | 1806.6 | 9626.3 | 8414.7 | N/A<sup>(6)</sup> | 10.8 |
|  Lao PDR | 7.8 | 7.7 | 16502.9 | 15843.2 | 2124 | 2066.9 | N/A<sup>(6)</sup> | 1769.7 | 16541.4 | 17712.3 | 23.1 | 31.2 |
|  Maldives | 0.5 | 0.5 | 7061.6 | 6621 | 13379.4 | 12587.6 | 673.9 | 590.5 | 4468.5 | 3835.3 | 1.4 | 2.9 |
|  Mongolia | 3.5 | 3.5 | 23794.5 | 20325.1 | 6750.6 | 5838.6 | 4891.4 | 4385.6 | 35380.6 | 32746.3 | 6.2 | 10.3 |
|  Morocco | 38.1 | 37.7 | 160611 | 146036.1 | 4153.2 | 3813.7 | 35278.8 | 34861.3 | 57204.8 | 55556.8 | 1 | 6.1 |
|  Myanmar | 54.5 | 54.1 | 74068.3 | 66757.6 | 1359.1 | 1233.2 | N/A<sup>(6)</sup> | 8855.8 | 9723.1 | 10485.6 | N/A<sup>(6)</sup> | N/A<sup>(6)</sup> |
|  Nepal | 29.7 | 29.7 | 42914.3 | 41047.8 | 1447.3 | 1382.3 | N/A<sup>(6)</sup> | 11926.5 | 8984.9 | 8832 | 4.7 | 7.1 |
|  Oman | 5.3 | 5 | 107137.2 | 106174.7 | 20285.2 | 21027.7 | 17722.2 | 17298.2 | N/A<sup>(6)</sup> | N/A<sup>(6)</sup> | 0.6 | 1 |
|  Pakistan | 251.3 | 247.5 | 371570 | 336686.3 | 1478.8 | 1360.3 | 12977.2 | 9442.6 | 107787.7 | 110548.2 | 12.6 | 30.8 |
|  Philippines | 115.8 | 114.9 | 461617.5 | 437055.6 | 3984.8 | 3804.1 | 95250.8 | 93196 | 112426.5 | 103625.4 | 3.2 | 6 |
|  Romania | 19.1 | 19.1 | 382564.2 | 347758 | 20080.2 | 18244.4 | 64698.5 | 66128.6 | N/A<sup>(6)</sup> | N/A<sup>(6)</sup> | 5.7 | 10.4 |
|  Russia | 143.5 | 143.8 | 2173835.8 | 2071505.7 | 14889 | 14159.4 | N/A<sup>(6)</sup> | 442537.1 | N/A<sup>(6)</sup> | N/A<sup>(6)</sup> | 8.4 | 5.9 |
|  Rwanda | 14.3 | 14 | 14251.6 | 14331.7 | 999.7 | 1027 | 2406.5 | 1834.1 | 11447.4 | 10127.4 | 1.8 | 19.8 |
|  Saudi Arabia | 35.3 | 33.7 | 1239804.5 | 1218584.5 | 35121.7 | 36156.8 | 436769 | 436526.6 | N/A<sup>(6)</sup> | N/A<sup>(6)</sup> | 1.7 | 2.3 |

---

------

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Population<br>(in millions)<sup>(1)</sup>** | **Population<br>(in millions)<sup>(1)</sup>** | **GDP (US$ in millions)<sup>(1)</sup>** | **GDP (US$ in millions)<sup>(1)</sup>** | **GDP per capita (US$)<sup>(1)</sup>** | **GDP per capita (US$)<sup>(1)</sup>** | **Total reserves**<br> **(excluding gold) (US$in millions)<sup>(1)(2)</sup>** | **Total reserves**<br> **(excluding gold) (US$in millions)<sup>(1)(2)</sup>** | **Total external debt**<br> **(US$ in millions)<sup>(1)(3)</sup>** | **Total external debt**<br> **(US$ in millions)<sup>(1)(3)</sup>** | **Consumer<br>price**<br> **index growth**<br> **(annual%<br>change)<sup>(1)</sup>** | **Consumer<br>price**<br> **index growth**<br> **(annual%<br>change)<sup>(1)</sup>** |
|  | **2024** | **2023** | **2024** | **2023** | **2024** | **2023** | **2024** | **2023** | **2024** | **2023** | **2024** | **2023** |
|  Singapore | 6.0 | 5.9 | 547386.6 | 505439.5 | 90674.1 | 85412.2 | 365494.4 | 344581.2 | N/A<sup>(6)</sup> | N/A<sup>(6)</sup> | 2.4 | 4.8 |
|  Sri Lanka | 21.9 | 22.0 | 98963.2 | 83716.1 | 4515.6 | 3798.9 | 6054.5 | 4374.0 | 48111.3 | 50393.6 | -0.4 | 16.5 |
|  Tajikistan | 10.6 | 10.4 | 14204.6 | 12244.2 | 1341.2 | 1178.5 | N/A<sup>(6)</sup> | 3303.8 | 5600.2 | 5665.6 | N/A<sup>(6)</sup> | N/A<sup>(6)</sup> |
|  Thailand | 71.7 | 71.7 | 526517.7 | 515906.3 | 7346.6 | 7195.1 | 217261.4 | 208280.6 | 117155.2 | 120419.7 | 1.4 | 8.5 |
|  Türkiye | 85.5 | 85.3 | 1359123.8 | 1141242.9 | 15892.7 | 13375.1 | 90858.7 | 92703.2 | 329635.2 | 317529.0 | 58.5 | 53.9 |
|  Uzbekistan | 36.4 | 35.7 | 114965.3 | 102641.9 | 3161.7 | 2879.0 | 9145.0 | 9932.5 | 63345.5 | 53266.9 | 9.6 | 10.0 |
|  Viet Nam | 101.0 | 100.4 | 476388.2 | 433857.7 | 4717.3 | 4323.4 | 83081.9 | 92237.5 | 93968.1 | 104824.5 | 3.6 | 3.3 |

---

Notes:

(1) Except as otherwise noted, this information is extracted from the World Bank's World Development
Indicators (the "WDI"), as last accessed on March 10, 2026.

(2) The WDI defines total reserves (excluding gold) as special drawing rights, reserves of IMF members held by the
IMF and holdings of foreign exchange under the control of monetary authorities.

(3) The WDI defines total external debt as debt owed to nonresidents repayable in currency, goods or services.

(4) This information is extracted from the Asian Development Bank: Key Indicators Online (the "KIDB"),
as last accessed on March 10, 2026

(5) The KIDB defines external indebtedness as total debt outstanding and disbursed.

(6) Indicates that the relevant figure is not available in the WDI or KIDB, as last accessed on March 10,
2026. 71

## Ex-4

**Exhibit 4**![LOGO](g108041pwc.jpg)

<u>CONSENT OF INDEPENDENT ACCOUNTANTS</u> 

We hereby consent to the incorporation by reference in the registration statement (No. 333-261099) under Schedule B of the Asian Infrastructure Investment Bank of our report dated March 24, 2026 relating to management's assessment of effectiveness of internal control over financial reporting as at December 31, 2025, and our audit of the financial statements as at and for the year ended December 31, 2025, which appear in Exhibit 2 of the Asian Infrastructure Investment Bank's Annual Report on Form 18-K for the fiscal year ended December 31, 2025.

PricewaterhouseCoopers

Hong Kong, China

April 10, 2026

PricewaterhouseCoopers 22/F Prince's Building, Central Hong Kong SAR, China

T: +852 2289 8888, F: +852 2810 9888 www.pwchk.com