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Borrowing Strategy and Debt Issuance 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.

Sustainable Development Bonds

All AIIB’s bond issues are Sustainable Development Bonds providing investors with an opportunity to improve social and economic outcomes in Asia that will impact the lives of billions and build a better future.

Please see our Investor Presentation here.

Use of Proceeds

The net proceeds from the sale of notes will be included in the ordinary resources of the Bank. 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 the Bank's operations comply with the Bank's operational and financial policies, which include policies addressing environmental and social impacts. The Bank'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 the Bank's mission, as well as adhere to applicable environmental and social safeguards. Pending their use, the net proceeds from the sale of notes will be invested as part of AIIB's liquid assets portfolio.

Impact

As of April 3, 2020, AIIB approved 68 financings, with an approved financing amount of USD 13.45 billion, as part of our mission to improve social and economic outcomes in Asia. 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. The full AIIB Approved Project List is available here.

Debt Issuance Programs

Debt issuance programs include an SEC Registered Shelf, Global Medium Term Note Programme, Euro Commercial Paper 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.

The following documentation is being made available for general information purposes only:

  - STEP-compliant Euro Commercial Paper Programme.

  - Global Medium Term Note Programme.

  - U.S. SEC-registered debt.

 

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