London Stock Exchange welcomes the Asian Infrastructure Investment Bank (AIIB)
London Stock Exchange has welcomed the Asian Infrastructure Investment Bank (AIIB) to mark its inaugural bond issue. The USD 2.5 billion, 5-year transaction will drive AIIB’s priorities of developing cross border connectivity, investing in environmentally friendly infrastructure and promoting Environmental, Social and Governance (ESG) investing in Asia.
The issuance is the latest milestone for AIIB, now only in its fourth year of operations. The success of the global bond issue underlines investor support for AIIB’s lean, clean and green operating principles as well as recognition of the Bank’s efforts to help its clients meet their commitments under the Paris Agreement and the Sustainable Development Goals.
Thierry de Longuemar, AIIB’s Chief Financial Officer hailed the bond issuance as “a landmark transaction for the market”, commenting: "This bond is reflective of investor demand globally for high quality sustainable investments. AIIB’s outlook has always been global with founding members from Asia, Africa and Europe. We were delighted to see demand from such a diversified group of investors in the book and look forward to showing our global investor base the positive contribution that this capital will have in Asia and beyond.
He continued: “We’re pleased to be announcing this major milestone here at London’s Stock Exchange today, the UK capital being the center for the Supra Sovereign Agency market. This is an important first step in the establishment of a diversified funding program with further issuance to follow suit in the near future."
The inaugural issue benefits from triple-A ratings from Standard & Poors, Moody’s and Fitch which reflect the Bank’s commitment to the highest standards of governance, enhanced transparency and accountability. AIIB has BIS 0% risk weighting and its addition to the European Banking Authority’s CRR list of multilateral development banks was recently approved by the European Parliament.
AIIB is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, it began operations in January 2016 and has now grown to 97 approved members worldwide. By investing in sustainable infrastructure and other productive sectors in Asia and beyond, AIIB will better connect people, services and markets that over time will impact the lives of billions and build a better future.