AIIB keen to fund projects in Northern Metropolis, Hong Kong finance chief says

The Asian Infrastructure Investment Bank, or AIIB, is a multilateral development bank established in 2016. It has 111 members worldwide. Its purpose is to finance infrastructure that supports economic development across regions. This matters because major infrastructure projects often require substantial funding over many years.

The bank prioritises sustainable infrastructure. Its stated focus includes carbon neutrality, green economic transformation and technology-driven projects. It has also been urged to support digital infrastructure by offering suitable financing options. The AIIB has become more active in Hong Kong by issuing Hong Kong dollar bonds.

The bank is now expanding its Hong Kong presence. It plans to open a local office by the end of the year, after establishing an operational hub in Abu Dhabi in 2023. Its interest in Northern Metropolis projects shows how its infrastructure mandate could connect with Hong Kong’s technology, housing and regional development plans.

Hong Kong’s Northern Metropolis is a planned mega development on land bordering mainland China. The government intends to transform it into a technology and housing hub. The project matters because it combines large-scale infrastructure with technology development and new homes, while also connecting Hong Kong more closely with the mainland border region.

AIIB president Zou Jiayi and his delegation discussed the project around the Apec Finance Ministers’ Meeting. The bank told Hong Kong that it would be very interested in co-investing if specific Northern Metropolis projects became available. Its expertise lies in infrastructure financing, particularly sustainable and technology-driven development.

No specific project has yet been named for AIIB financing. Financial Secretary Paul Chan said Hong Kong would explore cooperation when projects were ready. The bank’s planned local office could make future engagement easier, while its regional development mandate fits the project’s wider economic aims.

The Northern Metropolis is exceptionally large: the government’s plan covers 30,000 hectares, equivalent to 74,130 acres. Its size makes it a major long-term development rather than a single construction project. The area borders mainland China, giving the plan a strong regional dimension.

Hong Kong intends to develop the land as a technology and housing hub. That means the programme is expected to combine infrastructure for technology-related activity with housing development. The article does not provide a detailed list of facilities, construction phases or specific projects. It says only that future projects may be opened for co-investment.

The scale creates a need for substantial, carefully structured financing. AIIB has expressed interest because infrastructure is its area of expertise. Hong Kong will explore cooperation when individual projects are identified, and AIIB plans to open a local office by the end of the year.

AIIB financing could change the financial conditions for Northern Metropolis construction. Associate professor Billy Mak said the bank could provide low-interest, long-term loans. That matters because infrastructure projects may take a relatively long time to generate returns, so early repayments can otherwise put pressure on budgets and cash flow.

The key mechanism would be patient debt financing. A longer repayment period could better match the time needed for infrastructure to produce income, while a lower interest rate could reduce borrowing costs. The article does not state that AIIB has approved any loan or give a timetable for construction. It describes only possible future cooperation.

Approval could also have a broader effect. Mak said an AIIB loan would signal that an international institution considered projects financially viable, able to repay debt and beneficial to the regional economy. That endorsement could strengthen confidence in the development and its regional impact.

Northern Metropolis projects would need to meet AIIB’s loan requirements before funding could be provided. The article does not list every requirement, so the precise criteria remain unspecified. It does indicate that financial discipline and regional value would be central considerations.

According to Baptist University associate professor Billy Mak, projects would need to demonstrate repayment ability and financial viability. In practical terms, this means showing that expected project returns can support the debt. AIIB’s wider priorities also include sustainable infrastructure, carbon neutrality, green economic transformation and technology-driven projects.

Projects would additionally need to show benefits beyond Hong Kong’s immediate finances. Mak said they should benefit the broader regional economy. Financial Secretary Paul Chan said Hong Kong and AIIB would explore cooperation when specific projects became available. No project has yet been identified as approved for AIIB financing.

The article identifies several channels besides a possible AIIB loan. Finance ministers agreed to encourage private-sector investment in digital infrastructure. Chan also said Hong Kong was ready to support regional economies by serving as a destination for listing and securitising their assets.

These mechanisms can connect infrastructure projects with investors through Hong Kong’s financial market. Private investment would involve companies committing capital directly. Listing or securitisation could help turn infrastructure-related assets into marketable investment opportunities. The article does not say that any Northern Metropolis project has already used these methods, nor does it specify the amount that could be raised.

AIIB has become more active in Hong Kong by issuing Hong Kong dollar bonds, showing that bond-market activity is part of its local presence. However, the article does not announce a Northern Metropolis bond. It says only that future projects could be considered for co-investment and that Hong Kong is ready to support financing activity.

Large infrastructure projects often require heavy spending before they produce income. Roads, utilities, housing and technology facilities may take years to complete and generate returns. Long-term loans give borrowers more time to repay, while low interest reduces the cost of carrying debt during the development period.

The article applies this logic to Northern Metropolis projects. Billy Mak said AIIB could offer low-interest, long-term loans because infrastructure developments take a relatively long time to generate returns. A development bank can therefore match financing terms with the project’s longer economic timetable, while assessing whether projects can repay debt and create regional value.

AIIB’s stated priorities also connect finance with broader growth goals. It supports sustainable infrastructure, carbon neutrality, green economic transformation and technology-driven projects. Its role can extend beyond lending: an approved loan could signal international confidence in a project’s viability and regional economic benefits.