The Asian Infrastructure Investment Bank (AIIB, Aaa/AAA/AAA) priced a HKD4 billion 3-year Sustainable Development Bond on January 12, marking its second issuance in the Hong Kong dollar public bond market under the Wonton format.
The transaction attracted a final order book of approximately HKD7.8 billion, representing almost two times oversubscription. Strong demand enabled pricing at a reoffer spread of HIBOR mid-swaps +0 basis points, following tightening from initial price guidance.
The issuance builds on AIIB’s role in opening the Wonton bond market in 2025. Since AIIB’s inaugural transaction, more than HKD20 billion of Wonton bonds have been issued by three other multilateral development banks, contributing to deeper liquidity and broader distribution of SSA paper in the Hong Kong dollar market.
“This transaction demonstrates the depth of the Hong Kong dollar market and the strong demand for AIIB’s credit,” said Domenico Nardelli, AIIB Acting CFO and Treasurer. “We believe investor demand could have supported a larger transaction, reflecting the confidence placed in our funding program, but HKD 4 billion size best fits our 2026 issuance plan.”
Investor participation was led by Hong Kong bank treasuries, complemented by meaningful demand from central banks and official institutions, underscoring AIIB’s position as a core issuer in the local liquidity ecosystem.
“The success of this transaction confirms the sustainability of the Wonton bond format and AIIB’s ability to execute consistently in the Hong Kong dollar market,” said Darren Stipe, Head of Funding at AIIB. “We continue to view HKD as an important component of our diversified funding strategy.”
AIIB also returned to the sterling market this week with a GBP500 million transaction. The final orderbook reached GBP1.64 billion, representing 3.2 times oversubscription, the largest for an AIIB GBP benchmark. AIIB has issued six GBP benchmark bonds to date and continues to attract new investors, demonstrating its unique credit in this market.
Together, the two trades represent a strong start to AIIB’s 2026 borrowing program, under which the Bank has raised approximately USD 2.8 billion equivalent to date and expects total funding of around USD10 billion.
Key transaction terms
|
Issuer |
Asian Infrastructure Investment Bank (“AIIB”) |
|
|
Rating |
Aaa/AAA/AAA (Moody’s, S&P and Fitch), all stable |
|
|
Status |
Direct and Unsecured |
|
|
Currency |
HKD |
GBP |
|
Issue Amount |
HKD 4,000,000,000 |
GBP 500,000,000 |
|
Pricing Date |
12 Jan. 2026 |
13 Jan. 2026 |
|
Settlement Date |
20 Jan. 2026 |
20 Jan. 2026 |
|
Maturity Date |
20 Jan. 2029 |
22 Oct. 2030 |
|
Coupon |
2.790%, Annual, Actual/365 |
3.875%, Annual, Act/Act (ICMA), |
|
Re-offer Spread to mid swaps |
+0bps |
+36bps |
|
Re-offer Price |
100.00% |
99.639% |
|
Re-offer Yield |
2.790% |
3.963% ann. |
|
ISIN |
HK0001249496 |
XS3276325662 |
|
Listing |
Luxembourg Stock Exchange |
Luxembourg Stock Exchange |
|
Lead Managers |
Bank of China (Hong Kong) Limited, HSBC, Standard Chartered Bank |
Barclays, Bank of Montreal, NatWest Markets |
Investor Distribution
|
By Investor Type |
HKD |
GBP |
|
Central Banks/Official Institutions |
17% |
30% |
|
Bank Treasuries |
78% |
61% |
|
Asset Managers/Pension Funds/Insurance/Others |
5% |
9% |
|
By Investor Region |
HKD |
|
Hong Kong, China |
88% |
|
Asia ex. Hong Kong, China |
12% |
|
By Investor Region |
GBP |
|
APAC |
20% |
|
EMEA ex. UK |
20% |
|
United Kingdom |
58% |
|
Americas |
2% |
About AIIB
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is Financing Infrastructure for Tomorrow in Asia and beyond – infrastructure with sustainability at its core. We began operations in Beijing in 2016 and have since grown to 111 approved members worldwide. We are capitalized at USD100 billion and AAA-rated 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.
NOTHING IN THIS ELECTRONIC TRANSMISSION CONSTITUTES AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES OF AMERICA OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DO SO.
