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BEIJING, July 17 (Xinhua) -- The Asian Infrastructure Investment Bank (AIIB) said Friday that its board of directors had approved a 100-million-U.S.-dollar loan to a commercial bank in Vietnam to help sustain business activities disrupted by the COVID-19 pandemic.

Co-financed with the International Finance Corporation, the loan is offered to Vietnam's Prosperity Joint Stock Commercial Bank to help the bank expand lending to the private sector, including small and medium enterprises, the AIIB said in a statement.

This is AIIB's first project financing in Vietnam.

"Small and medium enterprises are the backbone of the economy and by injecting liquidity into the market, we can help this critical sector as part of the overall economic recovery in Vietnam," said AIIB Vice President, Investment Operations, D.J. Pandian.

As of July, AIIB has approved a total of 16 projects under its COVID-19 Crisis Recovery Facility, amounting to over 5.9 billion U.S. dollars to support 12 members in navigating the challenges of these highly uncertain times, the statement said.