Asian Infrastructure Investment Bank Issues its Maiden Digital Bond

The Asian Infrastructure Investment Bank (AIIB) has issued its first digital bond, raising $300 million on Friday, August 23. This marks a significant milestone as it is the first dollar-denominated digital issuance for Euroclear and the first from an Asia-based issuer on the platform, utilizing distributed ledger technology. Digital bonds, issued on blockchain or distributed ledgers, represent an evolving form of debt instruments.

Rated 'AAA' by Moody's, Standard & Poor's, and Fitch Ratings, this note was issued to support AIIB's sustainable bond program. Citigroup and BMO Capital Markets served as the bankers for the transaction. The bond is listed on the Luxembourg Stock Exchange, with options for clearing also available through the Hong Kong Monetary Authority's Central Moneymarkets Unit and the SIX Swiss Exchange.

The AIIB is a multinational bank and global financial organization focused on enhancing economic and social results in Asia through collective efforts. It is the second biggest multi-lateral development institution in the world. Based in Beijing, China, the bank has a total of 109 members, which includes 13 potential members from various countries. The distribution of the 109 members across continents is as follows: 42 in Asia, 26 in Europe, 22 in Africa, 9 in Oceania, 8 in South America, and 2 in North America. The bank began functioning once the agreement came into effect on December 25, 2015, following ratifications from 10 member states with 50% of the initial subscriptions of the Authorized Capital Stock.