AIIB launches debut sterling bond

The Asian Infrastructure Investment Bank (AIIB) has raised £800m for future infrastructure projects, the first time it has tapped into the sterling market to do so.

The money will be used to invest in “sustainable infrastructure to unlock new capital, new technologies and new ways in which to address climate change and to connect Asia, and the world”, it said.

Its orderbook closed in excess of £2bn, receiving 74 orders from bank treasuries, official institutions and wider real money investors.

AIIB chief financial officer Andrew Cross said: “We are still in the establishment phase of our borrowing programme and therefore every new market is approached strategically and involves very significant investor work to ensure a successful transaction.”

AIIB Treasurer Domenico Nardelli said: “This marks another step towards building a diversified funding program. With a borrowing programme of US$9bn for this year and an increasing borrowing requirement going forward, it is essential to establish ourselves in as many markets as possible such that we have a diversified source of funds for the years to come.”