Regional investors bet big on China-backed Asian Infrastructure Investment Bank’s first bond. Can it deliver?
- International development bank’s US$2.5 billion inaugural bond helps secure place among global financial institutions
- However, critics remain sceptical bank can achieve real results
Institutional investors in Asia have bet big on the China-backed Asian Infrastructure Investment Bank (AIIB), which debuted its first bond offering in London on Thursday. Half of the backers for the five-year US$2.5 billion bond were in Asia, and nearly two-thirds were central banks or other institutional investors – a sign the region considers China’s alternative to established multilateral banks a safe choice.
The vote of confidence cements the 3½-year-old institution’s status in the upper echelon of international development banks alongside the likes of the World Bank and Asian Development Bank (ADB).
In an interview with the Post, AIIB President Jin Liqun said Asian investors were “very much enthusiastic about working with us”.
“The geography of the investors in this bond clearly indicates a strong interest in Asia.”
Jin said the bank, which counts 97 countries as members, could help Asian nations weather the storm of the US-China trade war.