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Loans and grants

Loans and grants

Sustainable lending

We enable infrastructure that is transparent, responsible, upholds robust standards so that investments deliver long-term benefits, meets the genuine needs of our Pacific neighbours, and avoids unsustainable debt burdens.

Flexible financing tailored to specific needs.

The AIFFP provides both loans and grants to finance critical infrastructure projects that contribute to the overall stability and economic prosperity in the Pacific and Timor-Leste.

The provision of grants enables the AIFFP’s financing to be more attractive to its sovereign borrowers, as well as to ensure the AIFFP can operate in countries where loans are not suitable due to debt concerns.

In providing sovereign loans, the AIFFP, at a minimum, ensures its financing is consistent with Australia’s international obligations on debt sustainability and tailored to reflect a country’s specific debt circumstances.

Interest rates

The loans provided by the AIFFP carry an interest rate which is comparable to multilateral development bank rates, such as The International Bank for Reconstruction and Development, for sovereign borrowing and benchmarked to market rates for private sector borrowing.

Risk management

Learn about how we assess the risk factor of proposals.