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Borrowing Strategy and Debt Issuance Programs

Sustainable Development Bonds

All bonds issued by AIIB are Sustainable Development Bonds providing investors an opportunity to improve social and economic outcomes in Asia that will impact the lives of billions through Infrastructure for Tomorrow.

Please see our Investor Presentation here.

AIIB’s Sustainable Development Bond Framework (the Framework) presents a summary of the policies, strategies, processes and mechanisms that govern AIIB’s commitment to sustainable financing activities within its purpose—including supporting AIIB members’ efforts in meeting their commitments under the Paris Agreement on climate change and achieving their targets under the SDGs.

The Framework has four core components: (i) Use of Proceeds, (ii) Process for Project Evaluation and Selection, (iii) Management of Proceeds and (iv) Reporting.

Use of Proceeds

The net proceeds from the sale of notes will be included in the Bank’s ordinary resources. AIIB’s purpose 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 AIIB’s operations comply with each of the Bank’s operational and financial policies, which include policies addressing environmental and social impacts. AIIB’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 Dec. 31, 2020, AIIB approved 108 financings, with an approved financing amount of USD22.03 billion, as part of our mission to finance the Infrastructure for Tomorrow—infrastructure with sustainability at its core. 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.

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 ongoing 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 and tailor-made investment solutions.

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:

  - A$ and NZ$ Debt Issuance Programme.

  - Euro Commercial Paper Programme (STEP-compliant).

  - Global Medium Term Note Programme.

  - U.S. SEC-registered debt.

 

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