The Asian Infrastructure Investment Bank (AIIB) has sold 200 million Swiss francs (US$220 million) of sustainable development bonds to finance green infrastructure projects in Asia.
This is the Beijing-based multilateral lender’s first bond offering denominated in the Swiss currency.
According to the bank, the bonds were fully taken up by Swiss institutional investors when subscription opened on June 6. The seven-year bonds have a coupon rate of 1.75% per annum.
“The issuance further diversified AIIB’s investor base and attracted strong demand from bank treasuries, insurance, pension funds, and asset managers,” the bank says in a statement on June 12. It didn’t disclose the identity of any of the investors.
Darren Stipe, head of funding at the AIIB, says the addition of the Swiss franc market to the multilateral lender’s funding programme “is an important step as we expand our impact globally”.
The bonds will be listed on the Swiss Stock Exchange. The offering was jointly managed by BNP Paribas and Credit Suisse.
The AIIB has issued US$33.77 billion of sustainable development bonds in 17 currencies since 2019. All proceeds are used to finance infrastructure projects globally.
The bank primarily focuses on financing sustainability-related infrastructure projects. Formed in 2016, it has 106 member countries.
