The Asian Infrastructure Investment Bank (AIIB) has issued its debut benchmark Swiss Franc (CHF) Sustainable Development Bond. The 7-year CHF200 million attracted strong interest from Swiss investors when it debuted on the market on June 6, 2023. The issuance attracted more than CHF200 million of investor orders and the book closed after 20 minutes. The joint lead managers were BNP Paribas and Credit Suisse. The bond will be listed on the Swiss Stock Exchange.
This transaction marks the second inaugural benchmark for AIIB this year and the longest maturity of a public bond issued by the Bank to date. The issuance further diversified AIIB’s investor base and attracted strong demand from bank treasuries, insurance, pension funds, and asset managers.
“We are grateful for the support from Swiss investors on AIIB’s inaugural CHF benchmark in a new market with a high-quality order book,” said Domenico Nardelli, AIIB Treasurer. “With this issuance, we have increased our investor base, expanded our presence in the global capital markets and have now a good start at issuing longer maturities.”
AIIB has now issued USD33.77 billion equivalent of Sustainable Development Bonds in 17 currencies since its inaugural bond issuance in 2019. All proceeds from AIIB bonds will be used to support AIIB’s mission of Financing Infrastructure for Tomorrow in accordance with its operational and financial policies. All AIIB-financed projects, both in Asia and across the globe, are screened for their environmental and social benefits and impacts.
“With a total of 218 approved projects in 34 members, AIIB's operations are growing rapidly. It is therefore fitting that AIIB, as a triple-A issuer, continues to attract investors around the world. Adding the CHF market to AIIB's funding program is an important step as we expand our impact globally,” according to Darren Stipe, AIIB Head of Funding.
Key transaction terms:
Issuer Asian Infrastructure Investment Bank (AIIB)
Issuer Rating Aaa / AAA / AAA (Moody’s / S&P / Fitch)
Size CHF200 million
Pricing Date June 6, 2023
Payment Date June 26, 2023
Maturity Date June 26, 2030
Coupon 1.750%
Re-offer Spread vs Benchmark - 9bps vs SARON MS
Re-offer Price / Yield 1.6725% p.a. / 100.508%
Joint Lead Managers BNP Paribas, Credit Suisse
Investor Distribution:
By Investor Type
Bank / Treasuries 32.7%
Insurance/ Pension Fund 28.0%
Asset Manager 31.1%
Private Bank/ Official Institution 8.2%
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 Triple-A-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.
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