The Asian Infrastructure Investment Bank (AIIB) has priced its first global bond. The five-year bond raised US$2.5bn and 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.
The bank says that the successful pricing of the global bond highlights investor support for its 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.
This inaugural transaction in the debt capital markets attracted over 4.4 billion orders from over 90 investors across the globe representing 27 countries.
The inaugural bond benefits from triple-A ratings from Standard & Poor’s, Moody’s and Fitch, which reflect the bank’s commitment to the highest standards of governance, enhanced transparency and accountability. AIIB has a Bank of International Settlements 0% risk weighting and the European Parliament recently approved its addition to the European Banking Authority’s CRR list of multilateral development banks.
The AIIB funds will focus on, among other things, high-impact investments that promote sustainable development and climate resilient infrastructure. Examples of projects AIIB finances include metro lines in India, clean water projects in Egypt and Indonesia and bringing electricity to rural residents in Bangladesh.
Thierry de Longuemar, AIIB’s Chief Financial Officer, commented: “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, South America 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.”
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