London, UK, October 14, 2020

AIIB debut in GBP market unlocks new financing for sustainable development

  • 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.


Bond Summary Terms:


Asian Infrastructure Investment Bank (AIIB)



Issue rating:

Aaa / AAA  (stable / stable)


RegS Registered NSS


GBP 800 million


December 15, 2025


October 21, 2020 (T+5)


0.200%, Fixed, Annual, Actual/Actual


UKT 2% 09/07/25 + 33bps


99.785, 0.242% semi-annual / 0.242% annual


GBP1k + GBP1k


Issuer’s Global MTN Programme


Barclays (B&D), BofA Securities, NatWest Markets, TD Securities


The notes are expected to be listed on the Luxembourg Stock Exchange’s regulated market



Target Market         

The target market for the bonds is retail, professional and eligible counterparties, each as defined in MiFID II (all channels for distribution of the bonds are appropriate)

Use of Proceeds

The net proceeds from the sale of the Notes will be included in the ordinary resources of AIIB. AIIB’s mission is to (i) foster sustainable economic development, create wealth and improve infrastructure connectivity in Asia by investing in infrastructure and other productive sectors and (ii) promote regional cooperation and partnership in addressing development challenges by working in close collaboration with other multilateral and bilateral development institutions. The Articles of Agreement require that each of AIIB’s operations comply with AIIB’s operational and financial policies, which include policies addressing environmental and social impacts. AIIB’s financings, which may include loans, guarantees or equity or other forms of investments, undergo an approval, implementation and monitoring process designed to ensure they align with AIIB’s mission, as well as adhere to applicable environmental and social safeguards. Pending their use, the net proceeds from the sale of the Notes will be invested as part of AIIB’s liquid assets portfolio.


Execution Timeline:

  • AIIB announced its mandate for a netroadshow at 14:00 LDN on Friday, October 9, 2020, with an inaugural GBP Benchmark to follow, subject to market conditions.
  • This netroadshow was made available at 10:00 LDN on Monday, October 12, attracting high levels of investor interest from the onset.
  • Off the back of positive investor feedback, AIIB announced initial price thoughts (“IPTs”) for its inaugural GBP-denominated benchmark at UKT+35bps area at 10:31 LDN the following morning, Tuesday, October 13.
  • The announcement garnered strong indications of interest (“IoIs”), and the morning of Wednesday, October 14, with IoIs in excess of GBP 1 billion, AIIB officially opened books for its transaction, with guidance revised to UKT+34bps area.
  • The orderbook continued to develop strongly and at 10:11 LDN, with orders in excess of GBP 1.7 billion, the spread was tightened and set at UKT+33bps. It was also announced books would go subject at 10:30 LDN.
  • At 12:48 LDN, with books having closed in excess of GBP 2 billion, the quality of the orderbook allowed the transaction to be launched with a size of GBP 800 million.

Later in the afternoon at 14:15 LDN, the transaction officially priced with a spread of UKT+33bps, equivalent to a reoffer yield of 0.242%. 


Investor Distribution:

By Geography

By Investor Type




Central Banks and /Official Institutions





Banks / Private Banks


EMEA (ex. UK)



Fund Manager / Insurance / Pension








About AIIB

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, we began operations in January 2016 and have now grown to 103 approved members worldwide. By investing in sustainable infrastructure and other productive sectors in Asia and beyond, we will better connect people, services and markets that over time will impact the lives of billions and build a better future.


This news release is not for public release, publication or distribution, directly or indirectly, in or into any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction. 

This news release is not an offer of the securities for sale in the United States of America. These securities are being offered and sold pursuant to an exemption from the registration requirements of the U.S. Securities Act in reliance on, and in compliance with, Regulation S under the U.S. Securities Act. Distribution of this news release to any person within the United States is unauthorized.

This news release may contain forward-looking statements. Statements that are not historical facts are statements about the bank’s beliefs and expectations and may include forward-looking statements. These statements are identified by words such as “expect” and “will” and words of similar meaning. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Therefore, you should not place undue reliance on them. 

A rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension or withdrawal at any time by the assigning rating organization.

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+86 10 8358 0683

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