Aberdeen Standard Investments (ASI) has announced the partnership with the Asian Infrastructure Investment Bank (AIIB)which will help develop debt capital markets for infrastructure, drive responsible investing in fixed income and build environmental, social and governance (ESG) ecosystem in emerging markets in Asia.
Further to that, both firms would work closely to develop the Sustainable Capital Markets Initiatives aimed at improving ESG standards and build capacity around responsible investing.
Also, under the terms of the partnership, ASI would manage on behalf of AIIB the US$500 million AIIB Asia ESG Enhanced Credit Managed Portfolio, which would comprise primarily Asian infrastructure related bonds including both green and unlabelled issuances.
ASI was awarded the contract to manage the portfolio, which would be managed by its fixed income team based in Singapore, through a bidding process in December last year.
Integrating environmental and social factors into investment decisions in emerging part of Asia was critical as institutional investors were expected to play a key role in financing Asia’s growing infrastructure investment needs, the firm said.
“We are truly honoured to be entrusted by AIIB with this important partnership. Having been investing in Asia for three decades, Aberdeen Standard Investments shares AIIB’s commitment to deepening the region’s capital markets and building a sustainable ESG ecosystem for investing,” Standard Life Aberdeen’s chairman, Douglas Flint, said.