The Nation · Public debt · Multilateral
Asian Infrastructure Investment Bank
एसियाली पूर्वाधार लगानी बैंक
Fast-growing creditor since 2017. Infrastructure-heavy. USD-denominated.
Outstanding
USD 350M
as of FY 2024/25
Share of ext. debt
4%
cited
Currency
USD
FX exposure
Major loans
3
cited
How it works
AIIB began lending to Nepal in 2017 and has scaled quickly across power transmission, urban infrastructure, and roads. Terms include a market-linked element above SOFR for ordinary financing, with concessional windows for eligible operations. The stock is small relative to WB/ADB but growing fastest.
The short version
AIIB is a newer infrastructure bank, mostly funded by China and Asian member states. It started lending to Nepal in 2017 and is growing fast. Its loans are in US dollars.
Typical loan terms
Concessional and ordinary blend; market-linked spread above SOFR for non-concessional
Headline terms — individual loans may vary. Per-loan detail follows.
Major loans
Power Distribution System Upgrade
2018
USD 90M
Distribution network
Power Transmission and Distribution Efficiency
2019
USD 119M
Transmission backbone
Upper Trishuli 1 Hydropower (private-sector)
2019
USD 110M
216 MW hydropower
What to watch
- ·AIIB is the marginal additional lender Nepal has scaled up most quickly post-2017 — terms tighten as Nepal moves toward Lower-Middle-Income graduation.
- ·Project execution rate inside Nepal's system is the binding constraint here too.
Sources · cited verbatim
Ministry of Finance Nepal — PDMO — Public Debt Bulletin — multilateral creditors
Open release checked 2025-01-15Asian Infrastructure Investment Bank — Nepal — country page and projects
Open release checked 2025-01-31