The Asian Infrastructure Investment Bank ( AIIB ) has started 2025 strong, raising US$2 billion through the issuance of a five-year sustainable development bond.

The latest issuance marks the bank’s seventh consecutive year as an issuer in the US dollar market, where it has now raised over US$27 billion. This follows a £500 million ( US$607 million ) bond it issued just a week earlier.

Priced on January 9, the latest bond drew interest from global investors, with orders surpassing US$9.5 billion, almost 5x the issuance size.

Offering a 4.50% coupon, the bond will mature on January 16 2030, and was priced with a re-offer spread of plus 44 basis points to mid-swaps. It will be listed on the London Stock Exchange, with major financial institutions BMO Capital Markets, Citigroup, Crédit Agricole CIB, and J.P. Morgan acting as joint lead managers.

The latest issuance further cemented AIIB’s reputation in the global capital market. The strong demand prompted the bank to cap the issuance at US$2 billion, leaving room for further USD benchmarks later in the year.

Highlighting the bank’s expanding investor base, AIIB treasurer Domenico Nardelli notes that evolving market conditions have attracted a broader range of participants. The bond’s solid performance post-trade reaffirms the market’s trust in AIIB’s credit quality, adds head of funding Darren Stipe.

The bond attracted a broad mix of investors across regions and sectors. Demand was strongest from Europe, the Middle East, and Africa at 59%, followed by Asia-Pacific at 22%, and the Americas at 19%.

By investor type, bank treasuries accounted for 51% of the total allocation, while asset managers and pension funds took 28%, and central banks and official institutions 21%.

Proceeds from the bond sale will fund projects that promote regional connectivity and sustainability, aligning with the bank’s mission to support long-term development.