Asian Infrastructure Investment Bank issues $300 million digital bond for the first time
The Asian Infrastructure Investment Bank (AIIB) has successfully issued its first digital bond with proceeds raised 300 million US dollars. The bond is rated AAA with a 4% annual interest rate and will mature in January 2027. The offering, assisted by Citigroup and BMO capital markets, is the first digital bond issued by an Asian institution on Euroclear's distributed ledger platform. Notably, it is also the first digital bond to be issued in US dollars on the platform.
Citigroup will play a key role in the issuance and settlement of payments between investors and issuers. The bank will also act as an issuance and payment agent. The digital bond sale marks an important step in the adoption of blockchain technology in finance. While digital bonds are still a small part of the fixed income market, they are gaining increasing attention, with the participation of institutions such as the World Bank and the European Investment Bank.