EX-10

Exhibit 10

Asian Infrastructure Investment Bank

Condensed Financial Statements (Unaudited)

for the Six Months Ended June 30, 2026

REPORT ON REVIEW OF CONDENSED FINANCIAL STATEMENTS

To the Board of Governors of the Asian Infrastructure Investment Bank

Introduction

We have reviewed the condensed financial statements of the Asian Infrastructure Investment Bank (the “Bank”) set out on pages 1 to 50, which comprise the condensed statement of financial position as of June 30, 2026 and the related condensed statement of comprehensive income, condensed statement of changes in equity and condensed statement of cash flows for the six-month period then ended, and notes to the condensed financial statements. Management of the Bank is responsible for the preparation and presentation of these condensed financial statements in accordance with International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”) issued by the International Accounting Standards Board. Our responsibility is to express a conclusion on these condensed financial statements based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” as issued by the International Auditing and Assurance Standards Board. A review of these condensed financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed financial statements are not prepared, in all material respects, in accordance with IAS 34.

LOGO

Other Matter

The condensed statement of other comprehensive income, comparative condensed statement of changes in equity and comparative condensed statement of cash flows for the six-month period ended June 30, 2025 and the relevant notes included in these condensed financial statements were extracted from the interim financial information of the Bank for six-month period ended June 30, 2025 reviewed by another auditor who expressed an unmodified conclusion on the interim financial information on August 14, 2025. The comparative condensed statement of financial position as at December 31, 2025 were extracted from the financial statements of the Bank for the year ended December 31, 2025 audited by the same auditor who expressed an unmodified opinion on those statements on March 24, 2026.

/s/ Deloitte Touche Tohmatsu

Deloitte Touche Tohmatsu

Certified Public Accountants

Hong Kong, China

August 13, 2026

Contents

Financial Statements


Condensed Statement of Comprehensive Income			1
Condensed Statement of Financial Position			2
Condensed Statement of Changes in Equity			3
Condensed Statement of Cash Flows			4
Notes to the Condensed Financial Statements			5-50
A. General Information			5
B. Accounting Policies			6
C. Disclosure Notes			7-32
D. Financial Risk Management			33-45
E. Fair Value Disclosures			46-50

Asian Infrastructure Investment Bank

Condensed Statement of Comprehensive Income

For the six months ended June 30, 2026

In thousands of US Dollars

Note

For the six months
ended June 30, 2026

(unaudited)

For the six months
ended June 30, 2025

(unaudited)

Interest income

1,091,305

1,051,878

Interest expense

(774,643

)

(630,449

)

Net interest income

316,662

421,429

Net fee and commission income

28,036

21,209

Net gain on financial instruments measured at fair value and foreign exchange

260,356

124,324

Net gain/(loss) on financial instruments measured at amortized cost

(4,725

)

Impairment provision charge

(9,641

)

(17,643

)

General and administrative expenses

(157,311

)

(141,803

)

Operating profit for the period

438,133

402,791

Accretion of paid-in capital receivables

C10

166

121

Net profit for the period

438,299

402,912

Other comprehensive income

Items will not be reclassified to profit or loss

Unrealized gain in fair-valued borrowings arising from changes in own credit risk

C12

31,926

39,358

Total comprehensive income

470,225

442,270

Attributable to:

Equity holders of the Bank

470,225

442,270

The accompanying notes are an integral part of these financial statements.

Asian Infrastructure Investment Bank

Condensed Statement of Financial Position

As at June 30, 2026


In thousands of US Dollars	Note	June 30, 2026 (unaudited)			Dec. 31, 2025 (audited)
Assets
Cash and cash equivalents	C6		2,279,392			3,295,009
Term deposits	C6		4,740,116			3,138,361
Treasury investments
Investments at fair value through profit or loss	C7		15,176,461			12,827,965
Debt securities, at amortized cost	C9		11,119,395			10,490,939
Investment operations
Loan investments, at amortized cost	C8		31,089,547			29,626,580
Debt securities, at amortized cost	C9		713,084			806,153
Investments at fair value through profit or loss	C7		2,514,894			2,272,696
Paid-in capital receivables	C10		213,191			219,625
Derivative assets	C13		1,009,000			1,312,674
Property and equipment			7,606			7,760
Intangible assets			5,902			6,546
Other assets	C11		356,421			655,682
Total assets			69,225,009			64,659,990
Liabilities
Borrowings	C12		43,414,012			39,069,441
Derivative liabilities	C13		845,891			841,922
Prepaid paid-in capital			174			174
Other liabilities	C14		916,469			1,170,215
Total liabilities			45,176,546			41,081,752
Members’ equity
Paid-in capital	C15		19,526,400			19,526,400
Reserves
Accretion of paid-in capital receivables			(648	)		(814	)
Unrealized loss in fair-valued borrowings arising from changes in own credit risk			(82,774	)		(114,700	)
Retained earnings			4,605,485			4,167,352
Total members’ equity			24,048,463			23,578,238
Total liabilities and members’ equity			69,225,009			64,659,990

The accompanying notes are an integral part of these financial statements.


/s/ Zou Jiayi				/s/ Domenico Nardelli
Zou Jiayi				Domenico Nardelli
President				Acting Chief Financial Officer and
				Treasurer

Asian Infrastructure Investment Bank

Condensed Statement of Changes in Equity

For the six months ended June 30, 2026


									Reserves

In thousands of US Dollars	Note	Subscribed capital		Less: Callable capital			Paid-in capital		Accretion of paid-in capital receivables			Unrealized loss in fair-valued borrowings arising from changes in own credit risk			Retained earnings			Total members’ equity
Jan. 1, 2025			97,037,800		(77,630,300	)		19,407,500		(418	)		(193,752	)		3,244,205			22,457,535
Capital subscription and contribution			547,000		(437,600	)		109,400		-			-			-			109,400
Net profit for the period			-		-			-		-			-			402,912			402,912
Other comprehensive income			-		-			-		-			39,358			-			39,358
Paid-in capital receivables - accretion effect			-		-			-		(82	)		-			-			(82	)
Transfer of accretion	C10		-		-			-		121			-			(121	)		-
June 30, 2025 (unaudited)	C15		97,584,800		(78,067,900	)		19,516,900		(379	)		(154,394	)		3,646,996			23,009,123
Jan. 1, 2026			97,632,200		(78,105,800	)		19,526,400		(814	)		(114,700	)		4,167,352			23,578,238
Capital subscription and contribution			-		-			-		-			-			-			-
Net profit for the period			-		-			-		-			-			438,299			438,299
Other comprehensive income			-		-			-		-			31,926			-			31,926
Paid-in capital receivables - accretion effect			-		-			-		-			-			-			-
Transfer of accretion	C10		-		-			-		166			-			(166	)		-
June 30, 2026 (unaudited)	C15		97,632,200		(78,105,800	)		19,526,400		(648	)		(82,774	)		4,605,485			24,048,463

The accompanying notes are an integral part of these financial statements.

Asian Infrastructure Investment Bank

Condensed Statement of Cash Flows

For the six months ended June 30, 2026


In thousands of US Dollars	Note		For the six months ended June 30, 2026 (unaudited)			For the six months ended June 30, 2025 (unaudited)
Cash flows from operating activities
Net profit for the period				438,299			402,912
Adjustments for:
Interest income from term deposits				(93,538	)		(52,135	)
Interest expense for borrowings		C12		762,321			618,268
Interest expense for leasing		C1		-			7
Issuance cost for borrowings		C5		8,105			8,010
Accretion of paid-in capital receivables		C10		(166	)		(121	)
Net (gain)/loss on financial instruments measured at fair value through profit or loss				(414,780	)		605,490
Impairment provision charge		C4		9,641			17,643
Depreciation and amortization				2,342			2,624
Increase in loan investments		C8		(1,469,403	)		(1,971,344	)
Increase in debt securities in investment operations portfolio				(105,220	)		(155,402	)
Net cash received from/(paid for) derivatives				119,195			(124,405	)
Decrease/(increase) in other assets				301,609			(250,797	)
(Decrease)/increase in other liabilities				(256,648	)		650,905
Net cash used in operating activities				(698,243	)		(248,345	)
Cash flows from investing activities
Increase in investment with equity participation				(123,578	)		(176,430	)
Dividends received and return of capital contributions				109,961			41,964
Debt securities at amortized cost purchased in treasury investment portfolio				(752,218	)		(55,751	)
Debt securities at amortized cost matured, terminated or sold under treasury investment portfolio				123,600			46,121
Increase in other treasury investment				(2,191,634	)		(435,248	)
Increase in term deposits				(1,584,324	)		(1,255,912	)
Interest received from term deposits				76,107			45,860
Increase in intangible assets, property and equipment				(3,892	)		(3,094	)
Net cash used in investing activities				(4,345,978	)		(1,792,490	)
Cash flows from financing activities
Proceeds from borrowings, net		C12		13,397,590			10,292,682
Repayments of borrowings		C12		(8,591,288	)		(6,825,665	)
Interest payments on borrowings		C12		(784,260	)		(608,927	)
Capital contributions received		C10		6,600			22,215
Prepaid paid-in capital received				-			4
Lease payments				(38	)		(227	)
Net cash from financing activities				4,028,604			2,880,082
Net (decrease)/increase in cash and cash equivalents				(1,015,617	)		839,247
Cash and cash equivalents at beginning of period				3,295,009			1,922,539
Cash and cash equivalents at end of period		C6		2,279,392			2,761,786

The accompanying notes are an integral part of these financial statements.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

General Information

The Asian Infrastructure Investment Bank (the “Bank” or “AIIB”) is a multilateral development bank. By the end of year 2015, representatives from 57 economies signed AIIB’s Articles of Agreement (the “AOA”), which entered into force on Dec. 25, 2015. The Bank commenced operations on Jan. 16, 2016. AIIB’s principal office is in Beijing, the People’s Republic of China (“China”).

As at June 30, 2026, the Bank’s total approved membership is 111, of which 106 have completed the membership process and have become members of AIIB in accordance with the AOA.

AIIB’s purpose is to (i) foster sustainable economic development, create wealth and improve infrastructure connectivity in Asia by investing in infrastructure and other productive sectors; and (ii) promote regional cooperation and partnership in addressing development challenges by working in close collaboration with other multilateral and bilateral development institutions.

The legal status, privileges and immunities for the operation and functioning of AIIB in China are agreed in the AOA and further defined in the Headquarters Agreement between the government of the People’s Republic of China (the “Government”) and the Bank on Jan. 16, 2016.

The Bank’s first overseas office, an Operational Hub (the “Hub”), was established in Abu Dhabi, the United Arab Emirates (the “UAE”), upon the government of the UAE and the Bank signing an agreement regarding the establishment of an office in the UAE on April 19, 2023. The Hub provides proximity to global financial centers and connectivity with the international infrastructure ecosystem which is important in maintaining AIIB’s growth momentum.

These financial statements were signed by the President and the Acting Chief Financial Officer and Treasurer on Aug. 13, 2026.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Accounting Policies

Basis of preparation

These condensed interim financial statements for the six months ended June 30, 2026 have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”): IAS 34 Interim Financial Reporting, and should be read in conjunction with the annual financial statements for the year ended Dec. 31, 2025.

The accounting policies adopted are consistent with those used in the Bank’s annual financial statements for the year ended Dec. 31, 2025.

The preparation of financial statements in conformity with IFRS Accounting Standards requires the use of certain critical accounting estimates. It also requires management to exercise judgment in its process of applying the Bank’s accounting policies. The financial statements have been prepared on a going concern basis.

New accounting pronouncements

In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements (“IFRS 18”), effective for annual reporting periods beginning on or after Jan. 1, 2027. The new standard aims to give users of financial statements more transparent and comparable information about an entity’s financial performance. The Bank has conducted assessments and developed plans to implement the new standard and consequential amendments to other standards. The adoption of IFRS 18 is expected to affect the presentation of the statement of profit or loss, including the identification of the Bank’s main business activities and the resulting classification of income and expenses into operating, investing and financing categories. The new standard may also result in additional disclosure regarding Management-Defined Performance Measures (MPMs). The Bank will continue to assess the full impact as implementation progresses.

In addition to IFRS 18, the IASB issued amendments to IFRS 9 Financial Instruments (“IFRS 9”) and IFRS 7 Financial Instruments: Disclosures (“IFRS 7”) - Classification and Measurement of Financial Instruments in May 2024, effective for annual reporting periods beginning on, or after, Jan. 1, 2026. The amendments provide further clarification regarding the classification and measurement of financial assets and liabilities. The amendments did not have a material impact on the Bank’s financial statements.

Comparatives

The comparative date of the Condensed Statement of Financial Position is as at Dec. 31, 2025, while the comparative period of the Condensed Statement of Comprehensive Income, the Condensed Statement of Changes in Equity and the Condensed Statement of Cash Flows are from Jan. 1, 2025 to June 30, 2025.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

Interest income and expenses


	For the six months ended June 30, 2026			For the six months ended June 30, 2025
Interest income
Loan investments ⁽¹⁾⁽²⁾		712,521			720,682
Debt securities⁽²⁾		231,716			228,407
Cash, cash equivalents and deposits		146,784			100,389
Reverse repurchase agreements		284			2,400
Total interest income		1,091,305			1,051,878
Interest expense
Borrowings ⁽³⁾		(772,342	)		(629,656	)
Repurchase agreements		(2,301	)		(786	)
Lease		-			(7	)
Total interest expense		(774,643	)		(630,449	)
Net interest income		316,662			421,429

⁽¹⁾Interest income for loan investments includes amortization of front-end fees and other incremental and directly related costs in relation to loan origination that are an integral part of the effective interest rate of those loans.

⁽²⁾The Bank uses derivatives to manage interest rate and foreign currency risks on certain interest-bearing assets. Please refer to Note C13 Derivatives for details.

⁽³⁾Interest expense is accrued mainly based on the notional coupon rate. However, the Bank uses derivatives to manage interest rate and foreign currency risks, and hence, the actual borrowing cost for the Bank is swapped from fixed to floating rate. Please refer to Note C13 Derivatives for details.

Net fee and commission income


	For the six months ended June 30, 2026			For the six months ended June 30, 2025
Investment operations fee income		27,739			21,984
MCDF administration fee⁽¹⁾		1,285			1,123
Special Funds administration fee		965			255
Total fee and commission income		29,989			23,362
Cofinancing service fee		(1,953	)		(2,153	)
Total fee and commission expense		(1,953	)		(2,153	)
Net fee and commission income		28,036			21,209

⁽¹⁾According to the Governing Instrument of the Finance Facility of the Multilateral Cooperation Center for Development Finance (“MCDF Finance Facility”) and the agreement on the terms and conditions of service as the administrator (“Administrator”) of the MCDF Finance Facility, the Bank provides administrative and financial services to the MCDF Finance Facility, including hosting of the Secretariat of the Multilateral Cooperation Center for Development Finance (“MCDF”). Therefore, the Bank charges an administration fee for the services provided as the Administrator of the MCDF Finance Facility. The MCDF serves as a multilateral initiative to foster high-quality infrastructure and connectivity investments in developing economies.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

Net gain on financial instruments measured at fair value and foreign exchange


	For the six months ended June 30, 2026			For the six months ended June 30, 2025
Money Market Funds (Note C6)		11,440			28,923
Investments at fair value through profit or loss (Note C7)		187,257			667,970
Borrowings (Note C12)		415,971			(1,817,806	)
Derivatives (Note C13):
- Borrowings associated		(523,255	)		1,454,028
- Investments operations associated		272,700			(712,777	)
- Treasury investments associated		62,107			(196,905	)
Net gain/(loss) on financial instruments measured at fair value through profit or loss		426,220			(576,567	)
Net foreign exchange (loss)/gain ⁽¹⁾		(165,864	)		700,891
Total		260,356			124,324

⁽¹⁾The Bank uses derivatives to hedge net foreign currency exposures. Therefore, the net foreign exchange gains or losses arising from non-USD monetary items can be partially offset by the net gains or losses derived from derivative instruments.

Impairment provision


	For the six months ended June 30, 2026		For the six months ended June 30, 2025
Loan investments		9,339		21,006
Debt securities		215		(3,311	)
Guarantees		87		(52	)
Total impairment provision charge		9,641		17,643

General and administrative expenses


	For the six months ended June 30, 2026		For the six months ended June 30, 2025
Staff costs⁽¹⁾		92,132		78,882
Professional service expenses		21,525		20,365
IT services		12,785		11,530
Travel expenses		8,982		7,962
Issuance cost for borrowings		8,105		8,010
Facilities and administration expenses		7,955		8,411
Others		5,827		6,643
Total general and administrative expenses		157,311		141,803

⁽¹⁾Refer to Note C19 for details of key management personnel remuneration.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

Cash, cash equivalent and deposits with banks


	June 30, 2026		Dec. 31, 2025
Cash		3		-
Deposits with banks
- Demand deposits ⁽¹⁾		81,472		50,503
- Term deposits with initial maturity of three months or less		1,633,711		2,553,094
Money Market Funds ⁽²⁾		564,206		691,412
Total cash and cash equivalents		2,279,392		3,295,009
Add: term deposits with initial maturity more than three months ⁽³⁾		4,740,116		3,138,361
Total cash, cash equivalents and deposits with banks		7,019,508		6,433,370

⁽¹⁾

USD41.37 million of demand deposits is segregated for the externally managed portfolios (Dec. 31, 2025: USD26.74 million).

⁽²⁾

Money Market Funds


	For the six months ended June 30, 2026			For the year ended Dec. 31, 2025
As at beginning of period/year		691,412			318,474
Additions		12,424,786			23,025,400
Disposals		(12,563,432	)		(22,693,772	)
Fair value gain, net		11,440			41,310
Total Money Market Funds		564,206			691,412

Money Market Funds (“MMFs”) are rated triple-A equivalent and invest in a diversified portfolio of short-term high-quality assets. The objective of the investment is only to meet short-term cash commitments. The MMFs are subject to an insignificant risk of changes in value, with daily liquidity and an investment return comparable to normal USD denominated money market interest rates. The MMFs are exposed to credit, market and liquidity risks, and are measured at fair value.

⁽³⁾

Term deposits with initial maturity more than three months have maturities up to 24 months. As at June 30, 2026, USD4.74 billion of term deposits have remaining maturity within 12 months (Dec. 31, 2025: USD3.14 billion).

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

Investments at fair value through profit or loss


	For the six months ended June 30, 2026			For the year ended Dec. 31, 2025
As at the beginning of period/year		15,100,661			14,538,941
Investment, net		2,509,360			(301,297	)
Return of capital contributions		(105,923	)		(100,326	)
Net gain of investments		187,257			963,343
Total investments at fair value through profit or loss		17,691,355			15,100,661

Analysis of investments at fair value through profit or loss:

June 30, 2026

Dec. 31, 2025

Treasury investments

External Managers Program (a)

5,534,416

4,720,326

Debt securities (b)

9,642,045

8,107,639

Subtotal

15,176,461

12,827,965

Investment operations

Fixed income portfolio and debt securities (c)

1,042,056

837,523

Investment with equity participation (d)

1,472,838

1,435,173

Subtotal

2,514,894

2,272,696

Total investments at fair value through profit or loss

17,691,355

15,100,661

(a)

The Bank has engaged external asset managers to invest in portfolios of high credit quality debt securities (the “External Managers Program”). The portfolios are fair value measured and securities are eligible for sale.

(b)

The Bank invests mainly in debt securities of high credit quality, such as bonds, certificates of deposit and commercial papers, which are mostly actively managed within the treasury investment portfolio. The debt securities are measured at fair value through profit or loss.

(c)

The Bank has engaged an external asset manager to invest in a fixed-income portfolio, which is to develop the climate bond markets in Asia, composed of labeled green bonds and unlabeled climate-aligned bonds. Separately, the Bank also invests in securities for infrastructure and development purposes in its investment operations portfolio.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

Investments at fair value through profit or loss (Continued)

(d)

The Bank holds investments with equity participation which include limited partnership funds (“LP Funds”), trust, associates through venture capital and others.

LP Funds are managed by the general partners, who manage all investments on behalf of the limited partners. The Bank, along with other investors, has entered into the LP Funds as a limited partner.

As at June 30, 2026, the Bank held USD121.07 million investments in associates through venture capital (Dec. 31, 2025: USD125.72 million), which are measured at fair value through profit or loss in accordance with IFRS 9 by applying the exemption from adopting the equity method under IAS 28 Investments in Associates and Joint Ventures. For the six months ended June 30, 2026, these investments recorded a fair value loss of USD2.11 million, which is included in Note C3 (for the six months ended June 30, 2025: fair value gain of USD4.01 million).

The total remaining capital commitment amount for investments with equity participation has no significant change as at June 30, 2026 compared to Dec. 31, 2025. The investments with equity participation do not have a fixed exit date.

Please refer to Note C19 for the transactions with associates through venture capital.

Loan investments, loan commitments and related ECL allowance


Loan investments	June 30, 2026			Dec. 31, 2025
Gross carrying amount		31,217,763			29,748,360
Expected credit loss (“ECL”) allowance		(128,216	)		(121,780	)
Net carrying amount		31,089,547			29,626,580

Loan investments are carried at amortized cost. At initial recognition, loan investments are measured at fair value using the assumptions market participants of either sovereign-backed or nonsovereign-backed projects would use when pricing the loan assets. The market where the Bank enters into such transactions is considered to be the principal market. The transaction price normally represents the fair value of loans at their initial recognition.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

Loan investments, loan commitments and related ECL allowance (Continued)

All sovereign-backed loans to eligible members are subject to the same pricing, taking into account the “preferred creditor status” and other terms giving the Bank rights more favorable than those available to commercial creditors. The Bank applies commercial pricing practices to nonsovereign-backed loans. The Bank has no intention to sell sovereign-backed loans, nor does it believe there is a secondary market for such loans.

The Bank began offering variable spread loans in 2019 where the lending rate consists of a variable reference rate and a variable spread. The variable spread consists of a fixed contractual lending spread and maturity premium along with a variable borrowing cost margin. The reference rate and the borrowing cost margin are determined at each interest rate reset date and are applicable for the following six months. The borrowing cost margin is based on the cost of the underlying funding for these loans at the time of the reset. As at June 30, 2026, USD21,892.94 million of the total carrying amount of the Bank’s loans are variable spread loans (Dec. 31, 2025: USD21,076.65 million).

As at June 30, 2026, USD2,004.83 million of the total carrying amount matures within 12 months (Dec. 31, 2025: USD1,765.89 million).

The following table sets out overall information about the ECL of loan investments and loan commitments issued as at June 30, 2026. The gross amounts of loans are net of the transaction costs and fees that are capitalized through the effective interest method, or EIR method. Loan commitments are recorded based on the legal obligations the Bank has taken on to provide the financing, for which the Bank does not have the full discretion to withdraw.


	June 30, 2026			Dec. 31, 2025
Loan investments, gross carrying amount		31,217,763			29,748,360
Undrawn loan commitments		18,668,526			17,340,850

		49,886,289			47,089,210
Total ECL allowance (a)		(132,095	)		(122,756	)

		49,754,194			46,966,454

(a)

As at June 30, 2026, the total ECL allowance related to undrawn loan commitments is USD3.88 million (Dec. 31, 2025: USD0.98 million), and is presented as a provision in Note C14.

For the six months ended June 30, 2026, the impairment provision charged on loan investments and undrawn loan commitments were USD9.34 million (impairment provision charged for the six months ended June 30, 2025: USD21.0 million), as disclosed in Note C4.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

Debt securities at amortized cost


	June 30, 2026			Dec. 31, 2025
Treasury investments
Externally managed fixed income portfolio (a)		227,729			351,329
Internally managed fixed income portfolio (b)		10,892,986			10,140,767
ECL allowance		(1,320	)		(1,157	)
Subtotal		11,119,395			10,490,939
Investment operations
Investment operations bond portfolios (c)		715,974			813,989
ECL allowance		(2,890	)		(7,836	)
Subtotal		713,084			806,153
Net carrying amount		11,832,479			11,297,092

(a)

The Bank engaged an external asset manager to invest in a treasury investment portfolio of high credit quality securities. The portfolio adopts a hold-to-maturity business strategy. The debt securities are initially recognized at fair value and subsequently measured at amortized cost.

(b)

The Bank has an internally managed treasury investment portfolio of high credit quality debt securities. The portfolio adopts a hold-to-maturity business strategy. The debt securities are initially recognized at fair value and subsequently measured at amortized cost.

(c)

The Bank has engaged an external asset manager to invest in a fixed income debt securities investment portfolio which comprises Asian infrastructure-related bonds. Separately, the Bank also invests in other debt securities through private placements. The debt securities are initially recognized at fair value and subsequently measured at amortized cost.

For the six months ended June 30, 2026, USD0.03 million net investment gain was recognized as a result of derecognition of certain debt securities in the portfolios (for the six months ended June 30, 2025: net investment loss of USD4.7 million).

Debt securities at amortized cost are subject to credit losses estimated by applying an ECL model, assessed on a forward-looking basis. As at June 30, 2026, ECL allowances of USD2.89 million and USD1.32 million have been provided respectively to debt securities in investment operations and treasury investment portfolio (Dec. 31, 2025: USD7.84 million and USD1.16 million respectively).

As at June 30, 2026, USD2,337.29 million of the gross carrying amount matures within 12 months (Dec. 31, 2025: USD2,395.85 million).

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

C10

Paid-in capital receivables

According to the AOA, payments for paid-in capital (refer to Note C15) are due in five installments, with the exception of members considered as less developed countries, who may pay in 10 installments. Paid-in capital receivables represent amounts due from members in respect of paid-in capital. These amounts are initially recognized at fair value and subsequently measured at amortized cost. The fair value discount is accreted through income using the effective interest method. For the six months ended June 30, 2026, no discount (for the six months ended June 30, 2025: USD0.08 million) has been debited to the reserve. An amount of USD0.17 million (for the six months ended June 30, 2025: USD0.12 million) has been accreted through income in the current year.

As at June 30, 2026, overdue contractual undiscounted paid-in capital receivables amounted to USD204.18 million (Dec. 31, 2025: USD203.98 million) (Note C15) are not considered impaired.

As at June 30, 2026, USD207.50 million (Dec. 31, 2025: USD213.68 million) of the paid-in capital balance is due within 12 months.


	For the six months ended June 30, 2026			For the year ended Dec. 31, 2025
As at the beginning of period/year		219,625			234,336
Paid-in capital receivables originated		-			118,228
Contributions received		(6,600	)		(132,719	)
Transfer from prepaid paid-in capital to contribution		-			(496	)
Accretion to profit or loss		166			276
Total paid-in capital receivable		213,191			219,625

C11

Other assets


	June 30, 2026		Dec. 31, 2025
Cash collateral receivable (Note C13)		243,647		120,879
Receivable for unsettled trades		96,445		366,863
Prepayments		9,621		11,297
Receivable for Special Funds and MCDF administration fees		1,990		2,470
Reverse repurchase agreements		-		151,894
Others		4,718		2,279
Total other assets		356,421		655,682

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

C12

Borrowings


	June 30, 2026		Dec. 31, 2025
Borrowings carried at fair value		39,185,411		36,592,173
Borrowings carried at amortized cost		4,228,601		2,477,268
Total borrowings		43,414,012		39,069,441

The Bank raises funds through various markets to support its operations and enhance the presence in the key capital markets which provide the Bank with cost-efficient funding levels. The Bank’s debt issuance programs include the SEC-registered Shelf, Global Medium-Term Notes Programme, Australian Dollar and New Zealand Dollar Debt Issuance Programme, Renminbi Bond Issuance Program and Euro Commercial Paper Programme (the “ECP”). Among these funding sources, the SEC-registered fixed-rate global notes have been the primary program of the Bank’s borrowing activities. These funding initiatives have enabled the Bank to access diverse sources of capital and strengthen its financial position.

The following table sets out the details of the outstanding amount by denominated currency.


Denominated currency	June 30, 2026		Dec. 31, 2025
USD		25,362,831		23,179,404
EUR		5,854,318		4,389,314
CNY		3,478,389		3,027,208
GBP		3,035,663		3,752,804
HKD		1,755,814		1,158,214
AUD		1,428,817		1,363,521
INR		1,163,800		1,202,306
CHF		523,233		394,729
MXN		252,410		230,293
Others		558,737		371,648
Total		43,414,012		39,069,441

Borrowings that are paired with swaps are designated as financial liabilities at fair value through profit or loss. The designation significantly reduces accounting mismatches that would otherwise arise if the borrowings were carried at amortized cost while the related swaps are carried at fair value. Interest from borrowings is calculated based on outstanding balances of the borrowings and coupon rates and presented as interest expense in the Statement of Comprehensive Income.

Floating rate notes and ECP are carried at amortized cost with interest expenses recognized under the effective interest rate method.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

C12

Borrowings (Continued)

The fair value changes for financial liabilities that are designated as at fair value through profit or loss that are attributable to changes in the Bank’s own credit risk, are recognized in other comprehensive income in accordance with the requirements of IFRS 9. Fair value movements attributable to changes in the Bank’s own credit risk are determined using the mark-to-market approach by applying an observable own credit spread curve to the Bank’s exposure at the reporting date.

For the six months ended June 30, 2026, the fair value gain attributable to changes in the Bank’s own credit risk included in the other comprehensive income amounted to USD31.93 million (for the six months ended June 30, 2025: fair value gain of USD39.36 million).

The following table sets out information about changes in liabilities arising from borrowing activities, including changes arising from cash flows and non-cash changes.


	For the six months ended June 30, 2026			For the year ended Dec. 31, 2025
As at beginning of period/year		39,069,441			32,953,799
Changes arising from cash flows
- Proceeds from borrowings, net		13,397,590			20,923,652
- Repayment of borrowings		(8,591,288	)		(16,678,372	)
- Interest payments		(784,260	)		(1,160,479	)
- Issuance cost for borrowings		8,105			10,233
Non-cash changes
- Accrued interest		762,321			1,291,168
- Changes in fair value included in the other comprehensive income		(31,926	)		(79,052	)
- Changes in fair values included in profit or loss (Note C3)		(415,971	)		1,808,492
Total borrowings		43,414,012			39,069,441

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

C13

Derivatives

As at June 30, 2026, the Bank has entered into several interest rate swap, foreign exchange forward and cross currency swap contracts. The Bank makes use of derivatives primarily to hedge the Bank’s borrowings, so as to convert issuance proceeds into the currency and interest rate structure sought by the Bank. The Bank also uses derivatives to manage the interest rate and foreign exchange risks arising from its financial assets including, but not limited to, loans, certificates of deposit and bond investments.

Derivative contracts are financial instruments valued at each reporting date using valuation techniques that consider observable market data such as yield curves, interest rates and foreign currency rates. Net interest paid or received on these derivative contracts is included within the net gain on financial instruments.

The following table sets out the contractual notional amounts and fair values of the derivatives as at June 30, 2026 and Dec. 31, 2025. The payments under each of the derivative contracts are subject to enforceable master netting arrangements.

As at June 30, 2026

Contractual notional

Fair value

amount

Assets

Liabilities

Derivatives

Interest rate swaps

32,997,997

180,197

96,757

Cross currency swaps

25,358,876

764,546

720,989

FX forwards

3,069,205

64,257

28,145

Total derivatives

61,426,078

1,009,000

845,891

As at Dec. 31, 2025

Contractual notional

Fair value

amount

Assets

Liabilities

Derivatives

Interest rate swaps

31,152,237

355,304

43,025

Cross currency swaps

23,918,869

947,854

780,179

FX forwards

1,543,226

9,516

18,718

Total derivatives

56,614,332

1,312,674

841,922

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

C13

Derivatives (Continued)

The table below presents the undiscounted cash flows in/(out) of the derivatives the Bank has entered into as at June 30, 2026 and Dec. 31, 2025.


	As at June 30, 2026
	Less than 1 month			1-3 months			3-12 months			1-5 years			Over 5 years			Total
Total Derivatives
Interest rate swaps		64,748			38,317			(94,422	)		171,243			91,630			271,516
Gross settling cross currency swaps - inflow		312,812			992,709			3,088,628			19,965,864			6,554,710			30,914,723
Gross settling cross currency swaps - outflow		(282,608	)		(1,034,042	)		(3,090,661	)		(19,711,358	)		(6,150,879	)		(30,269,548	)
Gross settling FX forwards - inflow		794,423			1,040,822			1,209,842			-			-			3,045,087
Gross settling FX forwards - outflow		(780,488	)		(1,014,304	)		(1,217,239	)		-			-			(3,012,031	)
Total derivatives		108,887			23,502			(103,852	)		425,749			495,461			949,747

	As at Dec. 31, 2025
	Less than 1 month			1-3 months			3-12 months			1-5 years			Over 5 years			Total
Total Derivatives
Interest rate swaps		51,582			69,856			(71,776	)		313,108			43,361			406,131
Gross settling cross currency swaps - inflow		140,887			622,921			4,129,296			16,821,621			6,694,501			28,409,226
Gross settling cross currency swaps - outflow		(148,443	)		(573,928	)		(4,017,317	)		(16,574,884	)		(6,345,551	)		(27,660,123	)
Gross settling FX forwards - inflow		477,552			466,446			599,910			-			-			1,543,908
Gross settling FX forwards - outflow		(481,326)			(470,352	)		(600,388	)		-			-			(1,552,066	)
Total derivatives		40,252			114,943			39,725			559,845			392,311			1,147,076

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

C13

Derivatives (Continued)

The Bank requires collateral in the form of cash against the exposures to derivative counterparties. The Bank records cash collateral in respect of the interest rate swaps and cross currency swaps based on the fair value of the swaps. This amount is presented separately in the Bank’s Statement of Financial Position as the cash flows are not applied towards the settlement of net interest payments. The collateral would only be applied against amounts due in the event that some or all the corresponding swaps are terminated early, including, but not limited to, as a result of a default by the relevant counterparty. As at June 30, 2026, the Bank has received cash collateral of USD387.65 million (Note C14) (Dec. 31, 2025: USD577.85 million) from the swap counterparties, and has paid cash collateral of USD243.65 million (Note C11) (Dec. 31, 2025: USD120.88 million) to the swap counterparties.

Due to the collateral arrangements in the Bank’s derivatives contracts, the counterparty valuation adjustment (“CVA”) and debt valuation adjustment (“DVA”) do not have a material impact on the derivative valuations as at June 30, 2026 and Dec. 31, 2025.

The contractual notional amounts of the derivatives and carrying amount of the hedged financial instruments are as follows. The Bank’s risk exposures have been well hedged. Therefore, the profit and loss are effectively managed on a net basis.


	As at June 30, 2026				As at Dec. 31, 2025
	Contractual notional amount of derivative		Gross carrying amount of economically hedged financial instruments		Contractual notional amount of derivative		Gross carrying amount of economically hedged financial instruments
Borrowings related hedge ⁽¹⁾		38,750,057		39,185,411		35,467,863		36,592,173
Loans related hedge		8,587,538		7,737,464		8,183,892		7,332,184
Debt securities related hedge in investment operations portfolio		1,208,918		1,155,857		992,744		993,544

⁽¹⁾

Borrowings and borrowings related hedge exclude ECP and derivatives linked to ECP. The notional amount of ECP related derivatives is included in the total notional amount for the treasury investment portfolio below.

Derivatives with notional amount of USD12,879.57 million are under the management of treasury investment portfolio (Dec. 31, 2025: USD11,969.83 million).

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

C14

Other liabilities


	June 30, 2026		Dec. 31, 2025
Cash collateral payable (Note C13)		387,654		577,849
Repurchase agreements		338,613		-
Payable for unsettled trades		72,222		288,066
Deferred interest (Note C19)		57,010		37,543
Accrued expenses		31,772		84,907
Staff cost payable		11,376		9,286
Financial guarantee liabilities		10,011		8,480
ECL provision for commitment of loan and debt securities		4,089		1,236
Bank overdrafts		-		162,111
Lease liability		-		38
Others		3,722		699
Total other liabilities		916,469		1,170,215

C15

Share capital


	June 30, 2026			Dec. 31, 2025
Authorized capital		100,000,000			100,000,000
- Allocated
- Subscribed		97,632,200			97,632,200
- Unsubscribed		384,800			384,800
- Unallocated		1,983,000			1,983,000
Total authorized capital		100,000,000			100,000,000
Subscribed capital		97,632,200			97,632,200
Less: callable capital		(78,105,800	)		(78,105,800	)
Paid-in capital		19,526,400			19,526,400
Paid-in capital comprises:
- amounts received		19,312,561			19,305,961
- amount due but not yet received		204,176			203,976
- amount not yet due		9,663			16,463
Total paid-in capital		19,526,400			19,526,400

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

C15

Share capital (Continued)

In accordance with Articles 4 and 5 of the AOA, the initial authorized capital stock of the Bank is USD100 billion, divided into 1,000,000 shares, which shall be available for subscription only by members.

The original authorized capital stock is divided into paid-in shares and callable shares, with paid-in shares having an aggregate par value of USD20 billion and callable shares having an aggregate par value of USD80 billion.

Payment of the amount subscribed to the callable capital stock of the Bank shall be subject to call only as and when required by the Bank to meet its liabilities. Calls on unpaid subscriptions shall be uniform in percentage on all callable shares.

In accordance with Article 37 of the AOA, any member may withdraw from the Bank at any time by delivering a notice in writing to the Bank at its principal office. A withdrawing member remains liable for all direct and contingent obligations to the Bank to which it was subject at the date of delivery of the withdrawal notice. At the time a country ceases to be a member, the Bank shall arrange for the repurchase of such country’s shares by the Bank as a part of the settlement of accounts with such country.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

C15

Share capital (Continued)


Member	Total share		Subscribed capital		Callable capital		Paid-in capital
Afghanistan		866		86,600		69,300		17,300
Algeria		50		5,000		4,000		1,000
Argentina		50		5,000		4,000		1,000
Armenia		374		37,400		29,900		7,500
Australia		36,912		3,691,200		2,953,000		738,200
Austria		5,008		500,800		400,600		100,200
Azerbaijan		2,541		254,100		203,300		50,800
Bahrain		1,036		103,600		82,900		20,700
Bangladesh		6,605		660,500		528,400		132,100
Belarus		641		64,100		51,300		12,800
Belgium		2,846		284,600		227,700		56,900
Benin		50		5,000		4,000		1,000
Brazil		50		5,000		4,000		1,000
Brunei Darussalam		524		52,400		41,900		10,500
Cambodia		623		62,300		49,800		12,500
Canada		9,954		995,400		796,300		199,100
Chile		100		10,000		8,000		2,000
China		297,804		29,780,400		23,824,300		5,956,100
Cook Islands		5		500		400		100
Croatia		50		5,000		4,000		1,000
Cyprus		200		20,000		16,000		4,000
Côte d’Ivoire		50		5,000		4,000		1,000
Denmark		3,695		369,500		295,600		73,900
Djibouti		5		500		400		100
EI Salvador		50		5,000		4,000		1,000
Ecuador		50		5,000		4,000		1,000
Egypt		6,505		650,500		520,400		130,100
Ethiopia		458		45,800		36,600		9,200
Fiji		125		12,500		10,000		2,500
Finland		3,103		310,300		248,200		62,100
France		33,756		3,375,600		2,700,500		675,100
Georgia		539		53,900		43,100		10,800
Germany		44,842		4,484,200		3,587,400		896,800
Ghana		50		5,000		4,000		1,000
Greece		100		10,000		8,000		2,000
Guinea		50		5,000		4,000		1,000
Hong Kong, China		7,651		765,100		612,100		153,000
Hungary		1,000		100,000		80,000		20,000
Iceland		176		17,600		14,100		3,500
India		83,673		8,367,300		6,693,800		1,673,500

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

C15

Share capital (Continued)


Member	Total share		Subscribed capital		Callable capital		Paid-in capital
Indonesia		33,607		3,360,700		2,688,600		672,100
Iran		15,808		1,580,800		1,264,600		316,200
Iraq		250		25,000		20,000		5,000
Ireland		1,313		131,300		105,000		26,300
Israel		7,499		749,900		599,900		150,000
Italy		25,718		2,571,800		2,057,400		514,400
Jordan		1,192		119,200		95,400		23,800
Kazakhstan		7,293		729,300		583,400		145,900
Kenya		50		5,000		4,000		1,000
Korea		37,387		3,738,700		2,991,000		747,700
Kuwait		5,360		536,000		428,800		107,200
Kyrgyzstan		268		26,800		21,400		5,400
Lao PDR		430		43,000		34,400		8,600
Liberia		50		5,000		4,000		1,000
Libya		526		52,600		42,100		10,500
Luxembourg		697		69,700		55,800		13,900
Madagascar		50		5,000		4,000		1,000
Malaysia		1,095		109,500		87,600		21,900
Maldives		72		7,200		5,800		1,400
Malta		136		13,600		10,900		2,700
Mauritania		50		5,000		4,000		1,000
Mongolia		411		41,100		32,900		8,200
Morocco		50		5,000		4,000		1,000
Myanmar		2,645		264,500		211,600		52,900
Naoero		5		500		400		100
Nepal		809		80,900		64,700		16,200
Netherlands		10,313		1,031,300		825,000		206,300
New Zealand		4,615		461,500		369,200		92,300
Norway		5,506		550,600		440,500		110,100
Oman		2,592		259,200		207,400		51,800
Pakistan		10,341		1,034,100		827,300		206,800
Papua New Guinea		50		5,000		4,000		1,000
Peru		1,546		154,600		123,700		30,900
Philippines		9,791		979,100		783,300		195,800
Poland		8,318		831,800		665,400		166,400
Portugal		650		65,000		52,000		13,000
Qatar		6,044		604,400		483,500		120,900
Romania		1,530		153,000		122,400		30,600
Russia		65,362		6,536,200		5,229,000		1,307,200
Rwanda		50		5,000		4,000		1,000

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

C15

Share capital (Continued)


Member	Total share		Subscribed capital		Callable capital		Paid-in capital
Samoa		21		2,100		1,700		400
Saudi Arabia		25,446		2,544,600		2,035,700		508,900
Senegal		50		5,000		4,000		1,000
Serbia		50		5,000		4,000		1,000
Singapore		2,500		250,000		200,000		50,000
Solomon Islands		5		500		400		100
South Africa		50		5,000		4,000		1,000
Spain		17,615		1,761,500		1,409,200		352,300
Sri Lanka		2,690		269,000		215,200		53,800
Sudan		590		59,000		47,200		11,800
Sweden		6,300		630,000		504,000		126,000
Switzerland		7,064		706,400		565,100		141,300
Tajikistan		309		30,900		24,700		6,200
Tanzania		50		5,000		4,000		1,000
Thailand		14,275		1,427,500		1,142,000		285,500
Timor-Leste		160		16,000		12,800		3,200
Togo		50		5,000		4,000		1,000
Tonga		12		1,200		1,000		200
Tunisia		50		5,000		4,000		1,000
Türkiye		26,099		2,609,900		2,087,900		522,000
United Arab Emirates		11,857		1,185,700		948,600		237,100
United Kingdom		30,547		3,054,700		2,443,800		610,900
Uruguay		50		5,000		4,000		1,000
Uzbekistan		2,198		219,800		175,800		44,000
Vanuatu		5		500		400		100
Viet Nam		6,633		663,300		530,600		132,700
Total		976,322		97,632,200		78,105,800		19,526,400

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

C16

Reserves

Based on Article 18.1 of the AOA, the Board of Governors shall determine at least annually what part of the net income of the Bank shall be allocated, after making provision for reserves, to retained earnings or other purposes and what part, if any, shall be distributed to the members.

C17

Distributions

Retained earnings as at June 30, 2026 are USD4,605.49 million (Dec. 31, 2025: USD4,167.35 million). For the six months ended June 30, 2026, USD0.17 million (for the six months ended June 30, 2025: USD0.12 million) of retained earnings has been transferred to the reserve for accretion of the paid-in capital receivables.

No dividends were declared during the reporting period.

C18

Unconsolidated structured entities

Special Funds established and administered by the Bank based on Article 17.1 of the AOA are unconsolidated structured entities for accounting purposes. Consistent with Article 10 of the Bank’s AOA, the resources of the Special Funds shall at all times and in all respects be held, used, committed, invested or otherwise disposed of entirely separately from the Bank’s ordinary resources.

The Bank charges an administration fee based on the principle of full cost recovery on the contribution amount received by the Special Funds. The respective Special Funds bear all expenses appertaining directly to operations financed from the resources of the Special Funds.

Apart from Special Funds, other unconsolidated structured entities in which the Bank holds an interest as of the reporting date include LP Funds, trusts, associates through venture capital, and other equity participation investments.

The Project Preparation Special Fund

The objective of the Project Preparation Special Fund is to support and facilitate preparatory activities during the preparation and early implementation of projects, on a grant basis, for the benefit of one or more members of the Bank that, at the time when the decision to extend the grant is made by the Bank, are classified as recipients of financing from the International Development Association (“IDA”), and other members of the Bank with substantial development needs and capacity constraints.

The resources of the Project Preparation Special Fund consist of: (a) amounts accepted from any member of the Bank, any of its political or administrative subdivisions, or any entity under the control of the member or such subdivisions or any other country, entity or person approved by the President may become a contributor to the Special Funds; (b) income derived from investment of the resources of the Special Funds; and (c) funds reimbursed to the Special Funds, if any.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

C18

Unconsolidated structured entities (Continued)

As at June 30, 2026, the Project Preparation Special Fund aggregate contributions received amounted to USD129 million (Dec. 31, 2025: USD129 million). For the six months ended June 30, 2026, there was no administration fee recognized as income (for the six months ended June 30, 2025: none).

As at June 30, 2026, there was no administration fee receivable by the Bank (Dec. 31, 2025: none).

The Special Fund Window for Less Developed Members (the “Special Fund Window”)

The Special Fund Window provides interest rate buydown to eligible sovereign-backed financing aligned with AIIB’s Corporate Strategy in eligible members according to the approved Rules and Regulations. The Special Fund Window is funded by the amounts transferred by the Bank from its Project Preparation Special Fund and voluntary contributions from the Bank’s members.

For the six months ended June 30, 2026, administration fees recognized as income amounted to USD0.71 million (for the six months ended June 30, 2025: USD0.01 million).

As at June 30, 2026, there was USD0.71 million administration fee receivable by the Bank (Dec. 31, 2025: USD0.09 million), and the interest rate buydown balance for eligible sovereign-backed loans from the Special Fund Window amounted to USD57.01 million (Dec. 31, 2025: USD37.54 million) (Note C14).

AIIB Project-Specific Window

On March 19, 2024, the Bank established the Project-Specific Window for the Bank to accept, manage and disburse external grants for the co-financing of eligible projects in the Bank’s low- and middle-income members and small island members as defined in the Rules and Regulations of the AIIB Project-Specific Window.

The resource of the Project-Specific Window consists of contributions from eligible contributors to co-finance specific eligible projects approved by the contributors. Contributions received will be channeled and disbursed to the approved specific projects.

For the six months ended June 30, 2026, there was no administration fee recognized as income (for the six months ended June 30, 2025: USD0.16 million).

As at June 30, 2026, there was no administration fee receivable by the Bank (Dec. 31, 2025: none).

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

C18

Unconsolidated structured entities (Continued)

AIIB External Special Funds

Special Funds resources received by AIIB in its role as implementing entity of multilateral partnership facilities are considered as an External Special Fund individually, and AIIB External Special Funds collectively. AIIB becomes an implementing entity of multilateral partnership facilities and establishes the External Special Fund after signing the corresponding legal arrangements individually with the respective multilateral partnership facilities.

Resources from the various multilateral partnership facilities are administered in separate External Special Funds.


Name of External Special Funds		Date of Establishment
Global Infrastructure Facility Technical Partner		June 23, 2021
MCDF Implementing Partner		Aug. 9, 2021
Pandemic Prevention, Preparedness and Response Trust Fund Implementing Entity		Feb. 10, 2023
Green Climate Fund Accredited Entity		June 25, 2025
Joint Multilateral Development Banks Long Term Strategy Program		June 2, 2026

The Bank is not obliged to provide financial support to the Special Funds.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

C19

Related party transactions

Parties are generally considered to be related if the parties are under common control, or one party has the ability to control the other party or can exercise significant influence over the other party in making financial or operational decisions. In considering each possible related party relationship, attention is directed to the substance of the relationship, not merely to the legal form.

Major outstanding balances with related parties are as follows:


	June 30, 2026						Dec. 31, 2025
	China related entities		Key management personnel		Other related parties		China related entities		Key management personnel		Other related parties
Loan investments		1,921,463		-		-		1,682,695		-		-
LP Fund		70,127		-		-		72,481		-		-
Equity and debt security investments in/or related to associates through venture capital		-		-		158,808		-		-		174,520
Other assets		-		-		705		-		-		95
Staff loan		-		33		-		-		65		-
Other liabilities		-		-		57,010		-		550		37,543

The income and expense items affected by transactions with related parties are as follows:


	For the six months ended June 30, 2026								For the six months ended June 30, 2025
	China related entities			Key management personnel		Other related parties			China related entities			Key management personnel		Other related parties
Income from loan investments		30,542			-		-			34,895			-		-
Net loss on LP fund		(491	)		-		-			(1,972	)		-		-
Net (loss)/gain on equity and debt security investments in/or related to associates through venture capital		-			-		(1,011	)		-			-		6,376
Income from staff loan		-			-		-			-			2		-
Income from Special Funds (Administration Fee)		-			-		705			-			-		167

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

C19

Related party transactions (Continued)

Shareholder with significant influence

The Bank considers China as the member that has a significant influence over the Bank’s financial and operating policies through its ability to exercise its voting powers in the Board. As at June 30, 2026, the Government of China (the “Government”) owned approximately 30.50% of the paid-in capital of the Bank (Dec. 31, 2025 approximately 30.50%).

The Bank enters into transactions with enterprises ultimately controlled by the Government (state-owned entities), including but not limited to, lending, debt securities, equity and fund investments, deposits and interbank placements, goods and services.

The Bank considers the transactions with China state-owned entities as activities conducted in the ordinary course of business, and the dealings of the Bank have not been significantly or unduly affected by the fact that these entities are ultimately controlled by the Government.

Significant transactions with China related entities are as follows:

(1)

Loan investments

The Bank has loan facilities to nonsovereign borrowers that are ultimately controlled by state-owned entities with a total outstanding balance of USD412.21 million as at June 30, 2026 (Dec. 31, 2025: USD257.25 million). The Bank entered into the agreements with the borrowers in the ordinary course of business under normal commercial terms and at market rates.

The Bank has sovereign-backed facilities to China with a total outstanding balance of USD1,509.25 million equivalent as at June 30, 2026 (Dec. 31, 2025: USD1,425.44 million). The Bank’s standard interest rate for sovereign-backed loans has been applied.

(2)

LP fund

In July 2019, the Bank approved a USD75 million investment into a limited partnership fund organized under the laws of Hong Kong, China (the “Fund”) and subscribed to an interest therein in November 2019. In addition to the Bank, the Government and other entities related therewith are also limited partners of the Fund. The Bank will not take part in the management of the Fund. As at June 30, 2026, the fair value of the Bank’s interest in the Fund is USD70.13 million (Dec. 31, 2025: USD72.48 million).

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

C19

Related party transactions (Continued)

Transactions with other related parties are as follows:

(1)

Equity and debt security investments in/or related to associates

The fair value of the Bank’s interest in the investments in associates through venture capital is USD121.07 million (Dec. 31, 2025: USD125.72 million). As at June 30, 2026, the Bank holds USD37.73 million of infrastructure asset-backed securities issued by one associate (Dec. 31, 2025: USD48.80 million).

(2)

Transactions with Special Funds

As at June 30, 2026, other assets included a receivable from the Special Fund Window for the administration fee of USD0.71 million (Dec. 31, 2025: USD0.09 million).

As at June 30, 2026, the interest rate buydown balance from Special Fund Window was USD57.01 million (Dec. 31, 2025: USD37.54 million).

Key management personnel

Key management personnel are those persons who have the authority and responsibility to plan, direct and control the activities of the Bank. Key management personnel of the Bank is defined as the members of the Bank’s Executive Committee, that is, in accordance with the Terms of Reference of the Executive Committee dated Jan. 5, 2022, the President, the Vice Presidents, the General Counsel, the Chief Risk Officer, the Chief Financial Officer and the Chief Economist. On Jan. 1, 2025, leadership positions of the investment client units were titled Chief Investment Officers. The Chief Investment Officers are members of the Bank’s Executive Committee. On Sep. 1, 2025, the Chief Partnerships Officer was included as a member of the Bank’s Executive Committee.

For the six months ended June 30, 2026, and the six months ended June 30, 2025, other than the staff loan granted to key management personnel as disclosed above, the Bank has no material transactions with key management personnel.

The compensation of key management personnel for the six months ended June 30, 2026 comprises short-term employee benefits of USD2.17 million (for the six months ended June 30, 2025: USD2.23 million) and defined contribution plans of USD0.43 million (for the six months ended June 30, 2025: USD0.45 million).

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

C19

Related party transactions (Continued)

Use of office building

In accordance with Article 5 of the Headquarters Agreement, the Government will provide a permanent office building (“Permanent Premises”) and temporary office accommodation to the Bank, free of charge. The Permanent Premises and temporary office accommodation are provided to the Bank for the purposes of carrying out its Official Activities, as defined in Article 1(k) of the Headquarters Agreement. The Bank does not have legal ownership of the Permanent Premises. Please refer to Headquarters Agreement disclosed on public domain of AIIB website.

The provision of the Permanent Premises and temporary office accommodation is not subject to any consideration payable by the Bank, or any conditions relating to the Bank’s lending or investing activities. The Bank, however, remains responsible for the management of the Premises and/or for the associated costs, including that of utilities and services.

On June 1, 2020, the Bank officially moved to the Permanent Premises. The temporary office was returned to the Government on June 5, 2020.

The Permanent Premises of the Bank are located at Towers A and B, Asia Financial Center, No. 1 Tianchen East Road, Chaoyang District, Beijing 100101 and, as of the reporting date, provides the Bank with approximately 110,866 square meters of office space and associated facilities and equipment.

On Sep. 11, 2019, the People’s Government of Tianjin Municipality (the “Tianjin Municipality”) and the Bank entered into a Memorandum of Understanding (the “MOU”), in accordance with Article 5 of the Headquarters Agreement, to set out the arrangements regarding the premises of the Bank as its backup business office in Tianjin (the “Tianjin Premises”). Specifically, according to the MOU, Tianjin Municipality will provide the Tianjin Premises to the Bank for its use, free of charge, similar to the arrangements for the Permanent Premises.

On March 31, 2021, Tianjin Municipality officially handed over the Tianjin Premises to the Bank. The Tianjin Premises are located at Level 25, Level 26, 3-14, No. 681, Ronghe Road, Binhai New Area, Tianjin, and provide the Bank with approximately 4,258 square meters of office space.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Disclosure Notes

C20

Segment reporting

The Bank has only one reportable segment since financial results are reviewed and resource allocation decisions are made at the entity level.

The table below illustrates the geographic distribution of the Bank’s loan and guarantee revenue by destination for the six months ended June 30, 2026, and June 30, 2025.

Loan and guarantee revenue comprises loan interest income, loan commitment fees, guarantee fees and other service fees.


	For the six months ended June 30, 2026						For the six months ended June 30, 2025
Region	Sovereign- backed loans and guarantees		Nonsovereign -backed loans		Total		Sovereign- backed loans and guarantees		Nonsovereign -backed loans		Total
Central Asia		70,496		18,008		88,504		61,616		11,171		72,787
Eastern Asia		30,662		6,929		37,591		36,912		7,534		44,446
Southeastern Asia		144,251		18,448		162,699		161,877		13,241		175,118
Southern Asia		261,946		17,334		279,280		259,920		13,212		273,132
Western Asia		87,342		41,869		129,211		98,576		32,546		131,122
Oceania		2,056		-		2,056		3,022		-		3,022
Other Regional		-		-		-		-		8,660		8,660
Total Regional		596,753		102,588		699,341		621,923		86,364		708,287
Total Non-Regional		26,264		14,655		40,919		24,737		9,642		34,379
Total		623,017		117,243		740,260		646,660		96,006		742,666

C21

Events after the end of the reporting period

There have been no other material events since the reporting date that would require disclosure or adjustment to these financial statements.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Financial Risk Management

Overview

The Bank adopts a proactive and comprehensive approach to risk management that is instrumental to the Bank’s financial viability and success in achieving its mandate. The ability to identify, mitigate and manage risk begins with the Bank’s policies established with a strong risk culture. In addition to establishing appropriate risk parameters and a thorough and robust project review and monitoring process, the risk management function provides independent oversight of credit and other investment risk, market risk, liquidity risk, counterparty credit risk, model risk, operational risk and compliance risk in the Bank’s activities. It is also designed to manage assets and liabilities to minimize the volatility in its equity value and to maintain sufficient liquidity.

For further information, please refer to the accompanying notes D Financial Risk Management included in the Bank’s financial statements for the year ended Dec. 31, 2025.

Credit and other investment risks

Credit quality analysis

Except for loan investments, debt securities and issued guarantee commitments, other financial assets are paid-in capital receivables, deposits with banks and MMFs, for which the credit risk is not material.

The following table sets out the gross carrying amount and undrawn commitments for sovereign-backed loans and issued guarantees commitments, nonsovereign-backed loans exclusive of any received sovereign guarantees, and debt securities at amortized cost under investment operations and treasury investments with their respective ECL allowance balance as at June 30, 2026.


	June 30, 2026							Dec. 31, 2025
	Gross Carrying amount		Undrawn Commitments		ECL			Gross Carrying amount		Undrawn Commitments		ECL
Investment operations
Sovereign-backed loans and guarantees⁽¹⁾		27,722,579		18,668,359		(43,070	)		26,661,205		17,405,446		(31,964	)
Nonsovereign-backed loans		3,495,184		1,303,839		(89,850	)		3,087,155		1,190,145		(91,530	)
Debt securities		715,974		65,926		(3,100	)		813,989		75,221		(8,096	)
Subtotal		31,933,737		20,038,124		(136,020	)		30,562,349		18,670,812		(131,590	)
Treasury investments
Debt securities		11,120,715		-		(1,320	)		10,492,096		-		(1,157	)
Total		43,054,452		20,038,124		(137,340	)		41,054,445		18,670,812		(132,747	)

⁽¹⁾

As at June 30, 2026, the maximum credit risk exposure of the issued financial guarantees is USD1,303.67 million (Dec. 31, 2025: USD1,254.74 million), with an associated ECL allowance of USD0.83 million (Dec. 31, 2025: USD0.74 million). Of these, financial guarantees classified as Stage 1 amount to USD1,066.06 million with an ECL allowance of USD0.65 million, and those classified as Stage 2 amount to USD237.61 million with an ECL allowance of USD0.18 million.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Financial Risk Management

Credit and other investment risks (Continued)

Credit quality analysis (Continued)

(i) Concentration of credit risk in investment operations portfolio

The geographical distribution by the destination of the Bank’s loan investments (gross carrying amount of loans and exposure of undrawn loan commitments), issued guarantee commitments and associated ECL is as follows:


	June 30, 2026						Dec. 31, 2025
Region	Stage 1		Stage 2		Total		Stage 1		Stage 2		Total
Sovereign- backed loans and guarantees⁽¹⁾
Central Asia		5,494,241		-		5,494,241		4,471,062		-		4,471,062
Eastern Asia		3,211,134		-		3,211,134		3,252,562		-		3,252,562
Southeastern Asia		9,892,233		34,800		9,927,033		10,356,967		35,532		10,392,499
Southern Asia		16,751,025		336,969		17,087,994		16,189,840		344,098		16,533,938
Western Asia		7,073,892		491,362		7,565,254		6,322,085		-		6,322,085
Oceania		81,287		-		81,287		85,388		-		85,388
Total Regional		42,503,812		863,131		43,366,943		40,677,904		379,630		41,057,534
Total Non-Regional		1,621,042		1,402,951		3,023,993		3,009,117		-		3,009,117
Subtotal		44,124,854		2,266,082		46,390,936		43,687,021		379,630		44,066,651

	June 30, 2026						Dec. 31, 2025
Region	Stage 1		Stage 2		Total		Stage 1		Stage 2		Total
ECL allowance
Central Asia		1,045		-		1,045		1,606		-		1,606
Eastern Asia		211		-		211		363		-		363
Southeastern Asia		1,450		3,193		4,643		1,598		3,399		4,997
Southern Asia		13,128		4,994		18,122		14,002		5,459		19,461
Western Asia		2,372		2,558		4,930		2,899		-		2,899
Oceania		247		-		247		319		-		319
Total Regional		18,453		10,745		29,198		20,787		8,858		29,645
Total Non-Regional		660		13,212		13,872		2,319		-		2,319
Subtotal		19,113		23,957		43,070		23,106		8,858		31,964

⁽¹⁾

The issued financial guarantees are classified as Stage 1 amount to USD1,066.06 million with an ECL allowance of USD0.65 million, and those classified as Stage 2 amount to USD237.61 million with an ECL allowance of USD0.18 million.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Financial Risk Management

Credit and other investment risks (Continued)

Credit quality analysis (Continued)

(i) Concentration of credit risk in investment operations portfolio (Continued)


	June 30, 2026						Dec. 31, 2025
Region	Stage 1		Stage 2		Total		Stage 1		Stage 2		Total
Nonsovereign- backed loans
Central Asia		856,176		257,635		1,113,811		575,677		264,962		840,639
Eastern Asia		448,573		-		448,573		467,056		-		467,056
Southeastern Asia		883,322		26,239		909,561		550,351		26,221		576,572
Southern Asia		591,589		149,728		741,317		609,210		152,708		761,918
Western Asia		894,778		158,139		1,052,917		943,765		194,582		1,138,347
Total Regional		3,674,438		591,741		4,266,179		3,146,059		638,473		3,784,532
Total Non- Regional		328,668		204,177		532,845		298,078		194,690		492,768
Subtotal		4,003,106		795,918		4,799,024		3,444,137		833,163		4,277,300
Total		48,127,960		3,062,000		51,189,960		47,131,158		1,212,793		48,343,951

	June 30, 2026						Dec. 31, 2025
Region	Stage 1		Stage 2		Total		Stage 1		Stage 2		Total
ECL allowance
Central Asia		1,430		14,811		16,241		1,572		17,209		18,781
Eastern Asia		811		-		811		886		-		886
Southeastern Asia		2,224		200		2,424		2,840		208		3,048
Southern Asia		752		19,325		20,077		684		16,691		17,375
Western Asia		4,015		10,545		14,560		4,066		16,587		20,653
Total Regional		9,232		44,881		54,113		10,048		50,695		60,743
Total Non- Regional		522		35,215		35,737		617		30,170		30,787
Subtotal		9,754		80,096		89,850		10,665		80,865		91,530
Total		28,867		104,053		132,920		33,771		89,723		123,494

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Financial Risk Management

Credit and other investment risks (Continued)

Credit quality analysis (Continued)

(i) Concentration of credit risk in investment operations portfolio (Continued)

The sector distribution of the proceeds of the Bank’s projects for loan investments (gross carrying amount of loans and exposure of undrawn loan commitments), issued guarantee commitments and associated ECL is as follows:


	June 30, 2026						Dec. 31, 2025
Sector	Stage 1		Stage 2		Total		Stage 1		Stage 2		Total
Sovereign- backed loans and guarantees
CRF⁽¹⁾-Economic Resilience/PBF⁽²⁾		9,978,637		781,544		10,760,181		11,215,565		-		11,215,565
CRF-Finance/Liquidity		399,799		-		399,799		457,873		-		457,873
CRF-Public Health		3,217,744		-		3,217,744		3,266,821		-		3,266,821
ERF⁽³⁾-Policy-Based Financing		249,588		-		249,588		-		-		-
Education Infrastructure		249,881		-		249,881		249,891		-		249,891
Energy		6,438,264		282,226		6,720,490		5,917,897		286,544		6,204,441
Transport		12,319,323		374,608		12,693,931		10,661,785		93,086		10,754,871
Urban		1,989,637		-		1,989,637		2,227,739		-		2,227,739
Water		4,321,841		289,532		4,611,373		4,213,762		-		4,213,762
Health		1,323,895		-		1,323,895		1,361,782		-		1,361,782
Multi-sector		2,752,778		237,611		2,990,389		2,914,769		-		2,914,769
Others		883,467		300,561		1,184,028		1,199,137		-		1,199,137
Subtotal		44,124,854		2,266,082		46,390,936		43,687,021		379,630		44,066,651

	June 30, 2026						Dec. 31, 2025
Sector	Stage 1		Stage 2		Total		Stage 1		Stage 2		Total
ECL allowance
CRF-Economic Resilience/PBF		7,570		5,745		13,315		10,391		-		10,391
CRF-Finance/Liquidity		704		-		704		1,098		-		1,098
CRF-Public Health		840		-		840		997		-		997
ERF-Policy-Based Financing		460		-		460		-		-		-
Education Infrastructure		28		-		28		30		-		30
Energy		2,112		4,276		6,388		2,403		4,627		7,030
Transport		2,300		6,606		8,906		1,935		4,231		6,166
Urban		1,384		-		1,384		1,417		-		1,417
Water		837		3,704		4,541		1,283		-		1,283
Health		14		-		14		15		-		15
Multi-sector		1,314		183		1,497		1,475		-		1,475
Others		1,550		3,443		4,993		2,062		-		2,062
Subtotal		19,113		23,957		43,070		23,106		8,858		31,964

⁽¹⁾

Crisis Recovery Facility (CRF) supported AIIB’s members and clients in alleviating and mitigating economic, financial and public health pressures arising from COVID-19.

⁽²⁾

PBF refers to policy-based financing.

⁽³⁾

The Energy, Food Security and Economic Resilience Facility (ERF) provides rapid financing support to AIIB’s members and clients’ affected by the ongoing challenges arising from the conflict in the Middle East.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Financial Risk Management

Credit and other investment risks (Continued)

Credit quality analysis (Continued)

(i) Concentration of credit risk in investment operations portfolio (Continued)


	June 30, 2026						Dec. 31, 2025
Sector	Stage 1		Stage 2		Total		Stage 1		Stage 2		Total
Nonsovereign- backed loans
CRF-Finance/ Liquidity		194,637		-		194,637		213,412		-		213,412
CRF-Public Health		39,512		-		39,512		38,284		-		38,284
Digital Infrastructure and Technology		168,980		-		168,980		224,029		-		224,029
Energy		1,434,304		496,855		1,931,159		1,232,418		544,088		1,776,506
Multi-sector		698,702		14,484		713,186		716,970		-		716,970
Transport		844,726		284,579		1,129,305		441,216		289,075		730,291
Urban		419,088		-		419,088		374,009		-		374,009
Education Infrastructure		84,611		-		84,611		82,109		-		82,109
Health		118,546		-		118,546		121,690		-		121,690
Subtotal		4,003,106		795,918		4,799,024		3,444,137		833,163		4,277,300
Total		48,127,960		3,062,000		51,189,960		47,131,158		1,212,793		48,343,951

	June 30, 2026						Dec. 31, 2025
Sector	Stage 1		Stage 2		Total		Stage 1		Stage 2		Total
ECL allowance
CRF-Finance/ Liquidity		639		-		639		597		-		597
CRF-Public Health		88		-		88		87		-		87
Digital Infrastructure and Technology		354		-		354		813		-		813
Energy		2,948		42,331		45,279		3,128		46,455		49,583
Multi-sector		1,364		29		1,393		1,431		-		1,431
Transport		2,736		37,736		40,472		2,849		34,410		37,259
Urban		820		-		820		973		-		973
Education Infrastructure		264		-		264		292		-		292
Health		541		-		541		495		-		495
Subtotal		9,754		80,096		89,850		10,665		80,865		91,530
Total		28,867		104,053		132,920		33,771		89,723		123,494

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Financial Risk Management

Credit and other investment risks (Continued)

Credit quality analysis (Continued)

(ii) Movement analysis

Set out below are movement analyses of the gross carrying amount of loans, exposures of undrawn loan commitments, issued guarantee commitments, and debt securities with the related changes in ECL allowances.

Sovereign-backed loans and issued guarantee commitments


	Stage 1			Stage 2			Total
Gross carrying amount of loans and exposure of undrawn loan/issued guarantee commitments as at Jan. 1, 2026		43,687,021			379,630			44,066,651
New loans, commitments and guarantees originated		3,609,780			-			3,609,780
Repayments		(723,314	)		(7,720	)		(731,034	)
Movement in net transaction costs, fees and related income through EIR method		(74,092	)		(141	)		(74,233	)
Cancelled commitment		(201,859	)		-			(201,859	)
Foreign exchange movements		(278,369	)		-			(278,369	)
Transfer to stage 1		-			-			-
Transfer to stage 2		(1,894,313	)		1,894,313			-
As at June 30, 2026		44,124,854			2,266,082			46,390,936

	Stage 1			Stage 2			Total
ECL allowance as at Jan. 1, 2026		23,106			8,858			31,964
Additions		918			-			918
Change in risk parameters ⁽¹⁾		(2,987	)		(671	)		(3,658	)
Change from lifetime (stage 2) to 12- month (stage 1) ECL		-			-			-
Change from 12-month (stage 1) to lifetime (stage 2) ECL		(1,858	)		15,770			13,912
Reversal of ECL allowance		(66	)		-			(66	)
As at June 30, 2026		19,113			23,957			43,070

⁽¹⁾

The change in the loss allowance is due to change in the Probability of Default, Loss Given Default and Exposure at Default used to calculate the expected credit loss for the loans.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Financial Risk Management

Credit and other investment risks (Continued)

Credit quality analysis (Continued)

Nonsovereign-backed loans


	Stage 1			Stage 2			Total
Gross carrying amount of loans and exposure of undrawn loan commitments as at Jan. 1, 2026		3,444,137			833,163			4,277,300
New loans and commitments originated		757,672			-			757,672
Repayments		(93,104	)		(41,002	)		(134,106	)
Movement in net transaction costs, fees and related income through EIR method		(648	)		(1,020	)		(1,668	)
Derecognition		-			-			-
Cancelled commitment		(65,119	)		-			(65,119	)
Foreign exchange movements		(25,348	)		(9,707	)		(35,055	)
Transfer to stage 1		-			-			-
Transfer to stage 2		(14,484	)		14,484			-
Transfer to stage 3		-			-			-
As at June 30, 2026		4,003,106			795,918			4,799,024

	Stage 1			Stage 2			Total
ECL allowance as at Jan. 1, 2026		10,665			80,865			91,530
Additions		473			-			473
Change in risk parameters ⁽¹⁾		(1,302	)		2,074			772
Change from lifetime (stage 2) to 12- month (stage 1) ECL		-			-			-
Change from 12-month (stage 1) to lifetime (stage 2) ECL		(56	)		29			(27	)
Reversal of ECL allowance		(26	)		(2,872	)		(2,898	)
As at June 30, 2026		9,754			80,096			89,850
Total gross carrying amount of loans and exposure of undrawn loan commitments as at June 30, 2026		48,127,960			3,062,000			51,189,960
Total ECL allowance as at June 30, 2026		28,867			104,053			132,920

⁽¹⁾

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Financial Risk Management

Credit and other investment risks (Continued)

Credit quality analysis (Continued)

Sovereign-backed loans and issued guarantee commitments


	Stage 1			Stage 2			Total
Gross carrying amount of loans and exposure of undrawn loan/issued guarantee commitments as at Jan. 1, 2025		36,769,077			876,860			37,645,937
New loans, commitments and guarantees originated		7,576,729			-			7,576,729
Repayments		(1,487,925	)		(57,232	)		(1,545,157	)
Movement in net transaction costs, fees and related income through EIR method		(135,690	)		164			(135,526	)
Cancelled commitment		(552,467	)		(3,066	)		(555,533	)
Foreign exchange movements		1,080,201			-			1,080,201
Transfer to stage 1		437,096			(437,096	)		-
Transfer to stage 2		-			-			-
As at Dec. 31, 2025		43,687,021			379,630			44,066,651

	Stage 1			Stage 2			Total
ECL allowance as at Jan. 1, 2025		28,318			35,860			64,178
Additions		1,632			-			1,632
Change in risk parameters ⁽¹⁾		(7,651	)		(4,188	)		(11,839	)
Change from lifetime (stage 2) to 12-month (stage 1) ECL		1,219			(22,506	)		(21,287	)
Change from 12-month (stage 1) to lifetime (stage 2) ECL		-			-			-
Reversal of ECL allowance		(412	)		(308	)		(720	)
As at Dec. 31, 2025		23,106			8,858			31,964

⁽¹⁾

The change in the loss allowance is due to change in the Probability of Default, Loss Given Default and Exposure at Default used to calculate the expected credit loss for the loans. It also includes those changes resulting from methodology updates, for details please refer to section D3 ECL measurement in the Bank’s annual financial statements for the year ended Dec. 31, 2025.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Financial Risk Management

Credit and other investment risks (Continued)

Credit quality analysis (Continued)

Nonsovereign-backed loans


	Stage 1			Stage 2			Total
Gross carrying amount of loans and exposure of undrawn loan commitments as at Jan. 1, 2025		3,034,979			503,597			3,538,576
New loans and commitments originated		1,485,961			-			1,485,961
Repayments		(559,023	)		(333,590	)		(892,613	)
Movement in net transaction costs, fees and related income through EIR method		(4,971	)		(4,015	)		(8,986	)
Derecognition		-			-			-
Cancelled commitment		(54,423	)		-			(54,423	)
Foreign exchange movements		118,318			90,467			208,785
Transfer to stage 1		-			-			-
Transfer to stage 2		(576,704	)		576,704			-
Transfer to stage 3		-			-			-
As at Dec. 31, 2025		3,444,137			833,163			4,277,300

	Stage 1			Stage 2			Total
ECL allowance as at Jan. 1, 2025		16,363			119,271			135,634
Additions		21,731			-			21,731
Change in risk parameters ⁽¹⁾		(4,685	)		(3,807	)		(8,492	)
Change from lifetime (stage 2) to 12-month (stage 1) ECL		-			-			-
Change from 12-month (stage 1) to lifetime (stage 2) ECL		(22,165	)		51,542			29,377
Reversal of ECL allowance		(579	)		(86,141	)		(86,720	)
As at Dec. 31, 2025		10,665			80,865			91,530
Total gross carrying amount of loans and exposure of undrawn loan commitments as at Dec. 31, 2025		47,131,158			1,212,793			48,343,951
Total ECL allowance as at Dec. 31, 2025		33,771			89,723			123,494

⁽¹⁾

The change in the loss allowance is due to change in the Probability of Default, Loss Given Default and Exposure at Default used to calculate the expected credit loss for the loans. It also includes those changes resulting from methodology updates and Post Model Adjustment, for details please refer to section D3 ECL measurement in the Bank’s annual financial statements for the year ended Dec. 31, 2025.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Financial Risk Management

Credit and other investment risks (Continued)

Credit quality analysis (Continued)

Debt securities in investment operations portfolio


	Stage 1			Stage 2		Stage 3⁽¹⁾			Total
Gross carrying amount of debt securities and exposure of undrawn debt security commitments as at Jan. 1, 2026		884,141			-		5,069			889,210
New debt securities		50,898			-		-			50,898
Accrual and amortization		(10,405	)		-		-			(10,405	)
Foreign exchange movements		(12,889	)		-		-			(12,889	)
Transfer to stage 1		-			-		-			-
Transfer to stage 2		(2,946	)		2,946		-			-
Transfer to stage 3		-			-		-			-
Derecognition		(129,845	)		-		(5,069	)		(134,914	)
As at June 30, 2026		778,954			2,946		-			781,900

	Stage 1			Stage 2		Stage 3⁽¹⁾			Total
ECL allowance as at Jan. 1, 2026		3,051			-		5,045			8,096
Additions		1,234			-		-			1,234
Change in risk parameters		(441	)		-		5			(436	)
Change from lifetime (stage 2) to 12-month (stage 1) ECL		-			-		-			-
Change from 12-month (stage 1) to lifetime (stage 2) ECL		(70	)		411		-			341
Change from 12-month (stage 2) to lifetime (stage 3) ECL		-			-		-			-
Reversal of ECL allowance		(1,085	)		-		(5,050	)		(6,135	)
As at June 30, 2026		2,689			411		-			3,100

⁽¹⁾

For the six months ended June 30, 2026, the Bank disposed of the credit-impaired debt security, and the related ECL allowance was reversed accordingly.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Financial Risk Management

Credit and other investment risks (Continued)

Credit quality analysis (Continued)

Debt securities in treasury investment portfolio


	Stage 1			Stage 2		Stage 3		Total
Gross carrying amount of debt securities as at Jan. 1, 2026		10,492,096			-		-		10,492,096
New debt securities		1,753,602			-		-		1,753,602
Accrual and amortization		(91,813	)		-		-		(91,813	)
Foreign exchange movements		-			-		-		-
Transfer to stage 1		-			-		-		-
Transfer to stage 2		-			-		-		-
Transfer to stage 3		-			-		-		-
Derecognition		(1,033,170	)		-		-		(1,033,170	)
As at June 30, 2026		11,120,715			-		-		11,120,715

	Stage 1			Stage 2		Stage 3		Total
ECL allowance as at Jan. 1, 2026		1,157			-		-		1,157
Additions		211			-		-		211
Change in risk parameters		57			-		-		57
Change from lifetime (stage 2) to 12-month (stage 1) ECL		-			-		-		-
Change from 12-month (stage 1) to lifetime (stage 2) ECL		-			-		-		-
Change from 12-month (stage 2) to lifetime (stage 3) ECL		-			-		-		-
Reversal of ECL allowance		(105	)		-		-		(105	)
As at June 30, 2026		1,320			-		-		1,320

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Financial Risk Management

Credit and other investment risks (Continued)

Credit quality analysis (Continued)

Debt securities in investment operations portfolio


	Stage 1			Stage 2		Stage 3			Total
Gross carrying amount of debt securities and exposure of undrawn debt security commitments as at Jan. 1, 2025		707,197			-		14,988			722,185
New debt securities		321,955			-		252			322,207
Accrual and amortization		1,792			-		238			2,030
Foreign exchange movements		(9,552	)		-		-			(9,552	)
Transfer to stage 1		-			-		-			-
Transfer to stage 2		-			-		-			-
Transfer to stage 3		-			-		-			-
Derecognition		(137,251	)		-		(10,409	)		(147,660	)
As at Dec. 31, 2025		884,141			-		5,069			889,210

	Stage 1			Stage 2		Stage 3			Total
ECL allowance as at Jan. 1, 2025		2,162			-		14,010			16,172
Additions		1,186			-		128			1,314
Change in risk parameters		(113	)		-		20			(93	)
Change from lifetime (stage 2) to 12-month (stage 1) ECL		-			-		-			-
Change from 12-month (stage 1) to lifetime (stage 2) ECL		-			-		-			-
Change from 12-month (stage 1) to lifetime (stage 3) ECL		-			-		-			-
Reversal of ECL allowance		(184	)		-		(9,113	)		(9,297	)
As at Dec. 31, 2025		3,051			-		5,045			8,096

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Financial Risk Management

Credit and other investment risks (Continued)

Credit quality analysis (Continued)

Debt securities in treasury investment portfolio


	Stage 1			Stage 2		Stage 3		Total
Gross carrying amount of debt securities as at Jan. 1, 2025		11,045,284			-		-		11,045,284
New debt securities		2,214,427			-		-		2,214,427
Accrual and amortization		42,420			-		-		42,420
Foreign exchange movements		-			-		-		-
Transfer to stage 1		-			-		-		-
Transfer to stage 2		-			-		-		-
Transfer to stage 3		-			-		-		-
Derecognition		(2,810,035	)		-		-		(2,810,035	)
As at Dec. 31, 2025		10,492,096			-		-		10,492,096

	Stage 1			Stage 2		Stage 3		Total
ECL allowance as at Jan. 1, 2025		2,808			-		-		2,808
Additions		225			-		-		225
Change in risk parameters		(1,354	)		-		-		(1,354	)
Change from lifetime (stage 2) to 12-month (stage 1) ECL		-			-		-		-
Change from 12-month (stage 1) to lifetime (stage 2) ECL		-			-		-		-
Change from 12-month (stage 1) to lifetime (stage 3) ECL		-			-		-		-
Reversal of ECL allowance		(522	)		-		-		(522	)
As at Dec. 31, 2025		1,157			-		-		1,157

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Fair Value Disclosures

The majority of the Bank’s assets and liabilities in the Statement of Financial Position are financial assets and financial liabilities. Fair value measurement of nonfinancial assets and nonfinancial liabilities does not have a material impact on the Bank’s financial position and operations, taken as a whole.

The Bank does not have any financial assets or financial liabilities subject to nonrecurring fair value measurements for the six months ended June 30, 2026 (for the year ended Dec. 31, 2025: none).

The fair value of the Bank’s financial assets and financial liabilities are determined as follows:

If traded in active markets, fair values of financial assets and financial liabilities with standard terms and conditions are determined with reference to quoted market bid prices and ask prices, respectively.

If not traded in active markets, fair values of financial assets and financial liabilities are determined in accordance with generally accepted pricing models or discounted cash flow analysis using prices from observable current market transactions for similar instruments or using unobservable inputs relevant to the Bank’s assessment.

Fair value hierarchy

The Bank classifies financial assets and financial liabilities into the following three levels based on the extent to which inputs to valuation techniques used to measure fair value of the financial assets and financial liabilities are observable:

Level 1:

Fair value measurements are those derived from quoted prices (unadjusted) in an active market for identical assets or liabilities;

Level 2:

Fair value measurements are those derived from inputs other than quoted included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices); and

Level 3:

Fair value measurements are based on models, and unobservable inputs are significant to the entire measurement.

The Bank assesses the fair value hierarchy at security level. The Bank recognizes transfers in and transfers out of levels at the end of the reporting period during which the change has occurred.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Fair Value Disclosures

Financial assets and financial liabilities not measured at fair value on the Statement of Financial Position

The table below summarizes the carrying amounts and fair values of those financial instruments not measured in the Statement of Financial Position at their fair value:


	June 30, 2026				Dec. 31, 2025
	Carrying amount		Fair value		Carrying amount		Fair value
*Financial assets*
- Loan investments, at amortized cost		31,089,547		32,072,130		29,626,580		30,496,466
- Debt securities, at amortized cost		11,832,479		11,810,314		11,297,092		11,402,179
- Paid-in capital receivables		213,191		212,651		219,625		219,151
*Financial liabilities*
- Borrowings		4,228,601		4,228,719		2,477,268		2,481,420

As at June 30, 2026, other than those disclosed above, the Bank’s balances of financial instruments are not measured at fair value but with short-term maturity approximate their fair values.

Fair value of loan investments and paid-in capital receivables measured at amortized cost has been calculated using Level 3 inputs by discounting the cash flows at a current interest rate applicable to each loan and paid-in capital receivable.

The significant input used in the fair value of loan are risk-free rate, credit default swap spreads, expected recovery rate and foreign exchange rates. Management makes certain assumptions about the unobservable inputs to the model. These are regularly assessed for reasonableness and impact on the fair value of loans. An increase in the level of forecast cash flows in subsequent periods would lead to an increase in the fair value and an increase in the discount rate used to discount to forecast cash flow would lead to a decrease in the fair value of loans.

Fair value of debt securities held at amortized cost are generally based upon quoted market prices, if available. If the market prices are not readily available, fair values are estimated using either values obtained from independent parties offering pricing services or adjusted quoted market prices of comparable investments or using the discounted cash flow methodology.

Fair value of borrowings held at amortized cost are generally based upon quoted market prices, if available. If the market prices are not readily available, fair values are determined using discounted cash flow models.

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Fair Value Disclosures

Financial assets and financial liabilities measured at fair value on the Statement of Financial Position

The table below summarizes the fair values of the financial assets and financial liabilities measured in the Statement of Financial Position at their fair value:


As at June 30, 2026
	Level 1		Level 2			Level 3		Total
Financial assets and financial liabilities
Investments at fair value through profit or loss
- External Managers Program		5,251,715		282,701			-		5,534,416
- Investments with equity participation		-		-			1,472,838		1,472,838
- Debt securities		7,659,262		2,758,603			-		10,417,865
- Investment operations fixed-income portfolio		230,374		35,862			-		266,236
Money Market Funds		-		564,206			-		564,206
Derivative assets		-		1,009,000			-		1,009,000
Total financial assets		13,141,351		4,650,372			1,472,838		19,264,561
Borrowings		-		(39,185,411	)		-		(39,185,411	)
Derivative liabilities		-		(845,891	)		-		(845,891	)
Total financial liabilities		-		(40,031,302	)		-		(40,031,302	)

As at Dec. 31, 2025
	Level 1		Level 2			Level 3		Total
Financial assets and financial liabilities
Investments at fair value through profit or loss
- External Managers Program		4,495,360		224,966			-		4,720,326
- Investments with equity participation		-		-			1,435,173		1,435,173
- Debt securities		6,967,412		1,712,809			-		8,680,221
- Investment operations fixed-income portfolio		218,173		46,768			-		264,941
Money Market Funds		-		691,412			-		691,412
Derivative assets		-		1,312,674			-		1,312,674
Total financial assets		11,680,945		3,988,629			1,435,173		17,104,747
Borrowings		-		(36,592,173	)		-		(36,592,173	)
Derivative liabilities		-		(841,922	)		-		(841,922	)
Total financial liabilities		-		(37,434,095	)		-		(37,434,095	)

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Fair Value Disclosures

Financial assets and financial liabilities measured at fair value on the Statement of Financial Position (Continued)

The MMFs’ shares are not traded in any market. The fair value of the MMFs is derived from that of the net assets value, therefore MMFs are classified as Level 2 instruments.

External Managers Program and debt securities have been valued either using the discounted cash flow method based on observable market input, or obtained from market price. Derivative instruments and borrowings have been valued using discounted cash flow methodology based on observable market inputs. Quoted prices (unadjusted) in active markets are typical Level 1 inputs, while inputs other than quoted prices included within Level 1 that are observable for the asset and liability, either directly or indirectly, are typically Level 2 inputs.

In some situations, the inputs used to measure fair value might fall in different level of the fair value hierarchy. The level in the fair value hierarchy within which the fair value measurement falls shall be determined based on the lowest level input that is significant to the fair value measurement in its entirety. When unobservable inputs are significant to the fair value measurement, those financial instruments are to be categorized as Level 3.

During the six months ended June 30, 2026, due to changes in market conditions for certain investment securities, quoted prices in active markets were no longer available for these securities. However, there was sufficient information available to measure the fair values of these securities based on observable market inputs. Therefore, there were USD14.38 million of debt instruments transferred from Level 1 to Level 2 of the fair value hierarchy. In addition, there were transfers of USD270.01 million in investments of debt instruments from Level 2 to Level 1, when quoted prices in active markets become available.

The table below provides a reconciliation of the fair values of the Bank’s Level 3 financial assets for the six months ended June 30, 2026 and the year ended Dec. 31, 2025.

Investments with equity participation:


	For the six months ended June 30, 2026			For the year ended Dec. 31, 2025
As at beginning of period/year		1,435,173			1,255,460
Additions		123,578			282,326
Return of capital contributions		(105,923	)		(100,326	)
Fair value gain/(loss), net		20,010			(2,287	)
Total		1,472,838			1,435,173

The fair value gains or losses are attributable to changes in unrealized gains or losses relating to those financial assets held at the end of the reporting period, which are recognized in profit or loss under “Net gain on financial instruments measured at fair value and foreign exchange”. For the six months ended June 30, 2026, the realized gain arising from the Bank’s Level 3 financial assets amounted to USD4.04 million (for the year ended Dec. 31, 2025: USD14.03 million).

Asian Infrastructure Investment Bank

Notes to the Condensed Financial Statements

For the six months ended June 30, 2026

(All amounts in thousands of US Dollars unless otherwise stated)

Fair Value Disclosures

Financial assets and financial liabilities measured at fair value on the Statement of Financial Position (Continued)

The fair value of the investments with equity participation is mainly based on an adjusted net assets method using net asset values provided by the fund managers and discounted cash flow model. The unobservable inputs for discounted cash flow model mainly include weighted average cost of capital, liquidity discount and projected cash flows.

There has been no transfer in and/or out of Level 3 during the six months ended June 30, 2026 (for the year ended Dec. 31, 2025: none).