BAKU, Azerbaijan, January 9. The Asian
Infrastructure Investment Bank (AIIB) has launched its 2026
borrowing program with a $1 billion, 10-year benchmark bond,
attracting the highest level of investor interest ever recorded for
an AIIB transaction, Trend reports via the Bank.
The U.S. dollar-denominated Sustainable Development bond,
registered with the U.S. Securities and Exchange Commission, drew
indications of interest of about $9.7 billion and closed with a
final order book exceeding $14 billion, supported by strong demand
from central banks, official institutions and asset managers.
The robust demand allowed the bank to tighten pricing by 4 basis
points from initial guidance. The bond priced at mid-swaps plus 43
basis points, equivalent to about 7.4 basis points over the 10-year
U.S. Treasury yield and inside the levels of AIIB’s previous
10-year benchmark issues.
“We have been monitoring market levels closely and funding in
U.S. dollars is extremely attractive right now, both relatively and
on an absolute basis, particularly at the long end of the curve,”
AIIB Acting Chief Financial Officer and Treasurer Domenico Nardelli
said. “This bond priced 18 basis points lower versus mid-swaps than
our previous two 10-year benchmarks.”
Lower borrowing costs would benefit AIIB’s clients and support
the bank’s development impact, he added.
AIIB said strong investor demand reflected continued confidence
in its credit quality and its Sustainable Development Bond
framework. The deal marks a strong start to the bank’s 2026 funding
programme, under which AIIB plans to raise around $10 billion
equivalent across benchmark currencies and maturities, subject to
market conditions.
AIIB, a multilateral development bank launched in 2016 and
headquartered in Beijing, focuses on financing sustainable
infrastructure in Asia and beyond. The bank has 111 approved
members, authorised capital of $100 billion and carries a AAA
credit rating from major international rating agencies.
