Australia will contribute A$930 million (US$718.9 million) over five years into the China-led Asian Infrastructure Investment Bank (AIIB), in a move that will make it the bank's sixth largest shareholder. 25 Jun 2015
"There is an estimated infrastructure financing gap of around US$8 trillion in the Asian region over the current decade," Australia's Treasury and Foreign Affairs departments said. "The AIIB will be part of the solution to closing this gap."
"Joining the AIIB presents Australia with great opportunities to work with our neighbours and largest trading partner to drive economic growth and jobs," the statement said.
Australia's treasurer Joe Hockey will attend an Articles of Agreement signing ceremony at the Great Hall of the People in Beijing on Monday 29 June, it said.
The AIIB was launched in Beijing last year to boost investment in infrastructure in Asia. It is expected to have initial capital of close to US$100 billion to invest in infrastructure projects. It will be financed by individual country contributions proportionate to their economic size.
The New Zealand government announced last week that it will invest NZ$125 million (US$87 million) in the AIIB.