Sustainable lending
We provide infrastructure financing that is transparent, responsible and upholds robust standards so that investments deliver long-term benefits, meets the genuine needs of our Pacific and Timor-Leste partners, and avoids unsustainable debt burdens.
Flexible financing tailored to specific needs
The AIFFP provides loan and grant financing packages to sovereign and private sector partners in the Pacific and Timor‑Leste to support development of priority infrastructure projects. It can also issue guarantees to facilitate local currency borrowing and loans to finance or refinance existing infrastructure projects.
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.
Access to grant funding enables the AIFFP to issue financing that is more concessional and attractive to its sovereign borrowers, and allows the AIFFP to operate in countries where loans are not suitable due to debt concerns.
Interest rates
Each AIFFP loan is priced on a case-by-case basis. Its sovereign loans generally carry an interest rate broadly in line with or comparable to multilateral development bank rates (e.g. World Bank International Bank for Reconstruction and Development). The AIFFP’s private sector loans are priced at market rates.