The Asian Infrastructure Investment Bank (AIIB, Aaa/AAA/AAA) has successfully returned to China’s onshore bond market with its first 2-year Panda Bond, raising CNY2 billion and achieving record demand and investor diversification.
The transaction drew orders totaling CNY6.4 billion, resulting in a 3.2 times oversubscription, the highest for AIIB’s Panda Bond program. Priced at a spread of +7 basis points over China Development Bank (CDB) bonds, the issuance marks AIIB’s tightest spread in the Panda market in the past three years, underscoring investor confidence in the bank’s credit profile.
This deal also represents a notable deepening of AIIB’s investor base, attracting more than 30 accounts, the largest number in any of the bank’s Panda transactions, including 12 new investors. Demand came from both returning investors met during recent China roadshows and central banks and official institutions already active in AIIB’s USD bond program, now engaging with the onshore CNY market for the first time.
“This issuance demonstrates the growing relevance of AIIB’s credit in both offshore and onshore CNY markets,” said Domenico Nardelli, Treasurer at AIIB. “We are especially encouraged to see central banks and official institutions who know us well in USD now entering the Panda Bond market, alongside a wide mix of commercial banks and new accounts. The results reflect our continuous efforts to build a robust investor dialogue and diversify our sources of funding.”
Domestic and foreign bank treasuries drove demand and accounted for 88% of final allocations, while central banks and official institutions represented 10.5% and asset managers and insurers made up the remainder.
Offshore investors received 57.5% of final allocations, with onshore investors accounting for 42.5%. Offshore commercial banks took the largest share at 47%, followed by onshore foreign banks (27%), state-owned and joint-stock commercial banks (10%) and city/rural commercial banks (4%)
The transaction reinforces AIIB’s role as a frequent and strategic issuer across global and regional markets. It also highlights the Bank’s commitment to deepening local capital markets and fostering sustainable investment demand in Asia.
Key Transaction Terms
|
Issuer |
Asian Infrastructure Investment Bank ("AIIB") |
|
Rating |
Aaa/AAA/AAA (Moody’s, S&P and Fitch), all stable |
|
Status |
Direct i..and Unsecured |
|
Format |
Panda Bond |
|
Issue Amount |
CNY 2,000,000,000 |
|
Tenor |
2 years |
|
Pricing Date |
10 July 2025 |
|
Settlement Date |
14 July 2025 (T+2) |
|
Maturity Date |
14 July 2027 |
|
Coupon |
1.64%, Annual, Actual/Actual |
|
Spread to CDB |
+7 bps |
|
Lead Managers |
Bank of China, CITIC Securities, Standard Chartered Bank (China) |
|
Trading and Custody |
China Interbank Bond Market (CIBM) trading, and in custody of Shanghai Clearing House |
Investor Distribution
|
By Region |
|
|
Offshore: |
57.5% |
|
Onshore: |
42.5% |
|
By Investor Type |
|
|
Bank Treasuries: |
88.0% |
|
Central Banks/Official Institutions: |
10.5% |
|
Asset Managers/Insurers: |
1.5% |
|
By Bank Category |
|
|
Offshore Commercial Banks: |
47.0% |
|
Onshore Foreign Banks: |
27.0% |
|
State-owned/Joint-stock Commercial Banks: |
10.0% |
|
City/Rural Commercial Banks: |
4.0% |
About AIIB
The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “infrastructure for tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 110 approved members worldwide, is capitalized at USD100 billion, and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
