The Asian Infrastructure Investment Bank (AIIB) is a new international financial institution. The purpose of the new development bank is to drive infrastructure projects in transportation, energy, telecommunications and other infrastructure across Asia. The AIIB will do this using a variety of support measures - including loans, equity investments, and guarantees. The UK was the first major Western country to seek to join the AIIB which will also help maximise opportunities for British businesses in the region.

The Chancellor had announced back in March that the UK intended to become one of the founding members of the AIIB. In keeping with that commitment, the Commercial Secretary to the Treasury, Lord O’Neill, signed the founding Articles of Agreement at a formal ceremony in Beijing on 29 June 2015.

The signed Articles of Agreement make sure that key decisions, including on operational and financial policies, can only be made by a super majority of signatory countries. This will ensure that no single country is able to force through decisions that do not have widespread support. The UK has committed to make a capital contribution of £2 billion to the new bank which is expected to become fully operational by the end of the year.