China-backed Asian Infrastructure Investment Bank (AIIB) has approved a loan of $750 million to boost India's coronavirus response. The project, co-financed by the Asian Development Bank (ADB), aims at strengthening economic aid for businesses, extending social safety nets to the needy, and boosting the country's health care systems, AIIB said in a statement on Wednesday.

In May, AIIB approved a $500 million loan to assist India's emergency response to the pandemic. Both loans are part of a $10 billion funding facility the AIIB has announced to help public and private sectors fight the outbreak. The total sovereign loans by AIIB to India currently stand at $3.06 billion.

"Many of the world's low and middle-income countries are still in the early stages of the health crisis but are already feeling the impacts of the pandemic. This poses an enormous risk for millions across India who have only recently emerged from poverty," said AIIB Vice President, Investment Operations, DJ Pandian.

"This poses an enormous risk for millions across India who have only recently emerged from poverty," Pandian added. "Our support to India also aims to ensure economic resilience to prevent long-term damage to the productive capacity, including human capital, of India's economy," he noted.

While AIIB does not have a regular instrument for policy-based financing, the Bank is extending such financings on an exceptional basis under the COVID-19 Crisis Recovery Facility (CRF)CRF to support its members through projects co-financed with the World Bank or the ADB, it said.

AIIB is a multilateral development bank that aims to support the building of infrastructure in the Asia-Pacific region. The bank currently has 78 members as well as 24 prospective members from around the world.