The US$100 billion China-led Asian Infrastructure Investment Bank (AIIB) has opened its doors in Beijing with attention now focused on its first loan this year.

The bank, formed by 57 members, is set to finance major infrastructure projects in the Asia region. The Philippines this week became the last country to sign up as a founder member before the December 31 deadline.

The AIIB, a diplomatic initiative of Chinese president Xi Jinping, legally came into existence on December 25 and will have the first meeting of its board of governors on January 16. The bank expects to make its first loan by the middle of this year.

Founding members signed up for certain contributions of paid-up capital, with the remaining being callable capital, which will become a contingent liability on the Commonwealth balance sheet.

China has a 30 per cent stake in the AIIB, which is led by Jin Liqin, China’s former vice finance minister. Mr Jin has worked at the Asian Development Bank, the China International Capital Corporation and at China’s sovereign wealth fund, the China Investment Corporation. He recently said the bank will be “lean, clean and green”, and will not have the bureaucratic structure of other multilateral organisations, allowing it to kick-start projects faster.

The AIIB would be lending to projects involving energy and power, transport and telecoms, rural infrastructure, water supply, environmental protection and logistics.

The US refused to join the bank, but Britain broke ranks with Washington in March and announced it would be joining.