AIIB Opens 2024 with Record-breaking USD3 Billion Funding for 5-year Sustainable Development Bond

The Asian Infrastructure Investment Bank (AIIB, Aaa/AAA) advanced its 2024 calendar year funding program by announcing the pricing of a 5-year USD benchmark bond. The Sustainable Development Bond successfully raised USD3 billion, reinforcing AIIB's commitment to financing Infrastructure for Tomorrow.

This bond, which was priced on January 10, 2024, further contributes to AIIB's USD11 billion global borrowing authority for 2024, following its recent GBP500 million July-2027 Sustainable Development Bond that was priced on January 4. This is now the fifth consecutive year that AIIB has been an issuer in the U.S. Dollar market, amassing a cumulative total of 11 Dollar benchmarks, and raising over USD20 billion.

Domenico Nardelli, AIIB Treasurer, said, “I am thrilled by the robust start to 2024 AIIB has had in the global capital markets. This transaction underscores a significant milestone as we celebrate both the fifth anniversary of AIIB's involvement in primary markets and AIIB’s eighth anniversary of its operations.”

The transaction broke previous AIIB records for generating investor support by drawing orders from over 130 investors and forming an orderbook in excess of USD9 billion. This came in unison with a 3-basis point spread compression through the bookbuilding process.

The 5-year bond, with a coupon rate of 4.125% per annum payable semiannually, attracted strong interest from high-quality investors around the globe. The deal offers a spread versus mid-swaps of +53 basis points, equivalent to a spread of 26.45 basis points over the UST 3.750% due December 2028.

Darren Stipe, Head of Funding, based in AIIB's Interim Operational Hub in Abu Dhabi, remarked, “This is an unparalleled dollar benchmark for AIIB as we navigate our largest borrowing program to date. The SSA primary market has had a busy start to the year, and it is brilliant to see AIIB, alongside our peers, capitalize on this momentum. I am incredibly pleased to see another record for AIIB in the dollar market with our largest order book yet of USD9 billion, a testament to our supportive and growing investor base.”

Barclays, BMO Capital Markets, HSBC, and Morgan Stanley were the joint lead managers for the transaction.

Key Transaction terms

Investor Distribution: 

About AIIB

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is financing the Infrastructure for Tomorrow—infrastructure with sustainability at its core. We began operations in Beijing in January 2016 and have since grown to 109 approved members worldwide. We are capitalized at USD100 billion and rated Triple A by the major international credit rating agencies. Collaborating with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.

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