AIIB, London, UK,  October 14, 2020

• AIIB’s GBP 800 million five-year sustainable development bond is its fourth syndicated capital markets benchmark transaction in 2020, following successful 5-year and 3-year USD-denominated benchmarks and a debut Panda bond earlier in the year.

• This inaugural transaction in the GBP market attracted over GBP 2 billion in orders from over 74 investors across the globe.

• In its debut in the GBP market, AIIB was not only able to tighten pricing 2bps, but also priced with no new issue concession and locked in a borrowing cost comparable to its USD curve.

London, UK—The Asian Infrastructure Investment Bank (AIIB) today priced its first GBP-denominated benchmark transaction. The five-year sustainable development bond raised GBP 800 million and will finance AIIB’s mission of financing infrastructure for tomorrow – investing in sustainable infrastructure to unlock new capital, new technologies and new ways in which to address climate change and to connect Asia, and the world. The pricing of this bond is the latest milestone for AIIB.  Despite being AIIB’s first outing in the GBP market, and its fifth-ever syndicated benchmark transaction in the international capital markets, the deal was met with wide ranging demand. The orderbook closed in excess of GBP 2.0 billion from 74 orders with strong support from Bank Treasuries, Official Institutions and wider real money investors.

AIIB Chief Financial Officer Andrew Cross hailed the issuance of this first Sterling denominated sustainable development bond benchmark as another landmark transaction for the Bank. He said: “We are still in the establishment phase of our borrowing program and therefore every new market is approached strategically and involves very significant investor work to ensure a successful transaction.”

AIIB Treasurer Domenico Nardelli said: “This marks another step towards building a diversified funding program. With a borrowing program of USD 9 billion for this year and an increasing borrowing requirement going forward, it is essential to establish ourselves in as many markets as possible such that we have a diversified source of funds for the years to come.”

AIIB Head of Funding Martine Mills Hagen said: “It was gratifying to see all of the investor work really paying off with so many new investors coming into the book. We were 1.5 times oversubscribed but were limited in terms of deal size by the size of the Borrowing Authority for 2020. Hopefully this will be the first of many Sterling transactions and we very much look forward to deepening our relationship with this investor base who clearly share our vision for sustainable development in Asia and beyond.”

As with all of AIIB’s outstanding bonds, this new issue benefits from triple-A ratings from Standard & Poor’s and Moody’s, which reflect the Bank’s commitment to the highest standards of governance, enhanced transparency and accountability. AIIB has a Bank for International Settlements 0% risk weighting and is included in the European Banking Authority’s CRR list of multilateral development banks.

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