Asian markets: deepening financial integration. This new bank also offers a great opportunity to issue a new type of safe asset
to institutional investors assuming
the bank follows the World Bank’s example in issuing longdated
bonds. While not insignificant,
the initial capital – $50bn – looks still modest with regard to the ADB’s $160bn. In order to enlarge its financial capabilities, the AIIB
could issue bonds to fund infrastructure projects. Longdated
bonds suit such projects which can provide measurable returns, which is
not always the case with funding devoted to education or health.