Fixed Income Pulse: Asian Infrastructure Investment Bank issues its first global bond
Asian Infrastructure Investment Bank (AIIB) – the first triple-A rated Multilateral Development Bank (MDB) to have been launched in 25 years - has issued its inaugural bond.
The 5-year $2.5 billion bond attracted orders of over $4.4 billion from over 90 investors across the globe representing 27 countries, including high profile central bank treasury accounts. The success of this transaction highlights the calibre of AIIB’s balance sheet and the substantial effort undertaken by the AIIB team to help investors understand its “lean, clean and green” operating principles, and its resolution to help its clients meet their commitments under the Paris Agreement and the Sustainable Development Goals (SDGs).
Investor distribution of AIIB's debut bond.
The capital raised will drive AIIB’s priorities of investing in sustainable infrastructure, developing cross-border connectivity, and promoting Environmental, Social and Governance (ESG) investing in emerging Asia.
AIIB is a MDB with 97 Member Nations. It was formally established under an international treaty in 2015 (fully operational since 2016) and is headquartered in Beijing. It has committed over $7.94 billion to 39 projects in 13 member regions since its creation. The projects cover several sectors including Finance, Telecommunications, Energy, Urban and Water.
This listing consolidates London’s position as a leading international financing centre, and the UK’s position as a leader for issuances from sovereigns, supranationals and agencies (SSAs). To date London Stock Exchange has welcomed 1,471 bonds from supranational issuers, raising $410.2 billion. As of 15th May 2019, there are 585 active supranational bonds listed from 13 different issuers in 34 currencies.