AIIB issues CHF200 m sustainable development bond

12 / 06 / 2023

By Marwa Nassar - -

The Asian Infrastructure Investment Bank (AIIB) has issued CHF 200 million Sustainable Development Bond.

The 7-year bond attracted strong interest from Swiss investors when it debuted on the market on June 6, 2023.

The joint lead managers were BNP Paribas and Credit Suisse. The bond will be listed on the Swiss Stock Exchange.

This transaction marks the second inaugural benchmark for AIIB this year and the longest maturity of a public bond issued by the Bank to date. The issuance further diversified AIIB’s investor base and attracted strong demand from bank treasuries, insurance, pension funds, and asset managers.

“We are grateful for the support from Swiss investors on AIIB’s inaugural CHF benchmark in a new market with a high-quality order book,” said Domenico Nardelli, AIIB Treasurer. “With this issuance, we have increased our investor base, expanded our presence in the global capital markets and have now a good start at issuing longer maturities.”

AIIB has now issued $33.77 billion equivalent of Sustainable Development Bonds in 17 currencies since its inaugural bond issuance in 2019. All proceeds from AIIB bonds will be used to support AIIB’s mission of Financing Infrastructure for Tomorrow in accordance with its operational and financial policies. All AIIB-financed projects, both in Asia and across the globe, are screened for their environmental and social benefits and impacts.

“With a total of 218 approved projects in 34 members, AIIB’s operations are growing rapidly. It is therefore fitting that AIIB, as a triple-A issuer, continues to attract investors around the world. Adding the CHF market to AIIB’s funding program is an important step as we expand our impact globally,” according to Darren Stipe, AIIB Head of Funding.