Markets Hand AIIB Its Largest Orderbook Ever

With exceptional results on its latest three-year USD2 billion Sustainable Development Bond, the Asian Infrastructure Investment Bank (AIIB) is close to concluding its 2023 funding program.

“We are delighted with the continued support from a growing investor base and with our continued presence in capital markets,” said AIIB Treasurer Domenico Nardelli. “As we near our USD10-billion funding target, we can now reflect on where we began the year and where we’ve arrived. We had wanted 2023 to be a year of strengthening our position as an issuer, with goals of opening new markets and improving spreads to peer issuers. We’ve met those goals by issuing our inaugural EUR and CHF trades and by bringing ourselves tighter to peer levels with each and every benchmark trade.”

This issuance is AIIB’s second USD benchmark bond this year, solidifying the commitment to maintaining a liquid USD curve while taking advantage of the constructive USD funding market.

The pricing of the transaction attracted over 110 investors totaling orders of more than USD4.8 billion, both records for AIIB. The pricing of the 3-year bond, with a coupon rate of 4.875 percent per annum payable semiannually, attracted strong interest from high-quality investors around the globe. The deal was priced with a spread versus mid-swaps of +41 basis points, equivalent to a spread of 22.8 basis points over the 4.375 percent US Treasury notes of August 15, 2026.

The issue achieved wide global subscription, with 41 percent of investors from Asia, 37 percent from Europe, the Middle East and Africa (EMEA) and 22 percent from the Americas. The majority of the issue was allocated to central banks and official institutions, representing 73 percent, followed by banks at 16 percent and fund managers at 11 percent.

“AIIB’s last benchmark trade of the year is a wonderful exclamation point to close out our largest annual funding program.” stated Darren Stipe, AIIB Head of Funding. “It is the largest orderbook we’ve had and the largest number of investors, many of them new. What the market signals to me is a recognition that AIIB is able to weather disruptions, which is necessary within our AAA multilateral development bank community. We have a lot to look forward to in 2024 when we will be back with an aim to build on the tremendous success of 2023.”

BMO Capital Markets, BofA Securities, Citi and Nomura 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 106 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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