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Borrowing Strategy and Debt Programs

Borrowing Strategy

AIIB’s funding strategy is to optimize borrowing costs at all times. Issuance will be via a combination of USD benchmarks, alongside Eurobonds and private placements in various markets. Investor marketing initiatives are conducted on an on-going basis, to develop and maintain a committed base of stakeholders for primary and secondary market activities. Our aim is to build a diversified borrowing program in terms of product, tenor and currency, and thereby develop a global investor base. The core objective is to be viewed as a flexible, transparent and responsive issuer, providing liquid public offerings and reverse-inquiry, tailor-made investment solutions.

Debt Programs

AIIB issued its inaugural SEC registered bond in May of 2019. Proceeds from debt issuance will drive AIIB’s priorities of investing in sustainable infrastructure, developing cross-border connectivity, and promoting private capital mobilization through Environmental, Social and Governance (ESG) investing in Emerging Asia.

AIIB’s annual borrowing program is expected to be several USD billions per annum during the first years of capital markets issuance. The debt issuance programs will include an SEC Registered Shelf, Euro Medium Term Note Programme as well as other programs to maintain a diversified portfolio of structures, currencies and maturities, thus responding to the needs of a developing global investor base. Risk management strategies will overlay funding operations to minimize exposure to currency and interest rate risks.

AIIB has established a STEP compliant Euro commercial paper program rated A-1+ by S&P Global Ratings and Prime-1 by Moody’s Investors Service.

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