The China-backed Asian Infrastructure Investment Bank (AIIB) may issue its first US dollar-denominated bond by the end of June this year, according to a state media report on Sunday citing the bank’s treasurer Soren Elbech.
The earliest issuance window would be “toward the end of the first half of 2018”, to allow time for certain procedures, including the board of governors’ approval of AIIB’s 2017 financial statements as well as borrowing and swap documentation, Xinhua said citing a statement from Elbech.
Elbech said the minimum size of the bond would be US$1 billion, but as demand for the first bond issue from AIIB might be strong, “we anticipate having to issue a larger size”.
In terms of the bond’s maturity, Elbech said the choice would be between three and five years depending on investor demand at the time, Xinhua reported.
He said the bank planned to cap its total borrowing volume at US$3 billion in 2018.