INVESTING WITH IMPACT: AIIB's Sustainable Development Bonds January 2023 - *OFFICIAL USE ONLY
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*OFFICIAL USE ONLY
INVESTING WITH IMPACT:
AIIB’s Sustainable Development Bonds
January 2023
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*OFFICIAL USE ONLY
CONTENTS
1 ABOUT AIIB
AAA-rated MDB with strong financial performance
2 VISION AND MISSION
Financing Infrastructure for Tomorrow
3 INVESTMENT PORTFOLIO
Global presence with a diverse business portfolio
4 CREDIT STRENGTHS
Excellent financial credentials
5 FUNDING STRATEGY
Funding program of up to USD10 billion
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ABOUT AIIB
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ABOUT AIIB VISION AND MISSION INVESTMENT PORTFOLIO CREDIT STRENGTHS FUNDING STRATEGY ANNEX
WHO WE ARE
• A multilateral development bank (MDB)
established by international treaty with
106 members worldwide.
Delivering value to our Members
• Our Mission is financing Infrastructure and investors with our principles:
for Tomorrow (i4t) in Asia and beyond—
green infrastructure with sustainability,
innovation and connectivity at its core.
• With our partners, we unlock new LEAN CLEAN GREEN
capital to generate short-term income,
long-term growth and environmental
sustainability.
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WHY CHOOSE AIIB?
WHY CHOOSE AIIB?
1. MDB with sustainability at its core
• Environmental and Social Framework applies to all projects approved by AIIB.
• Solid Sustainable Development Bond Framework.
• Dual mandate supporting Sovereign and Nonsovereign-backed financing.
2. Uniquely positioned issuer
• AAA-rated with stable outlook from S&P/Moody’s/Fitch.
• 0% risk weighted and HQLA 1 under the Basel Framework.
• USD100 billion in capital stock with 20% assigned paid-in capital.
• FY23 funding program of USD10 billion.
• An MDB with a growing balance sheet.
3. Strong governance sustained by core principles
2018 Egypt: Sustainable Rural Sanitation Services • Lean: Efficient management and highly skilled staff.
Program
• Clean: High ethical standards and zero tolerance for corruption.
• Green: An institution built on respect for the environment.
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106 APPROVED MEMBERS
OVERVIEW OF AIIB‘S 47 Nonregional Members 45
Regional Members
SHAREHOLDING Afghanistan Iraq Qatar Algeria France Peru
STRUCTURE
Australia Israel Russia Argentina Germany Poland
Azerbaijan Jordan Samoa Austria Ghana Portugal
Bahrain Kazakhstan Saudi Arabia Belarus Greece Romania
Bangladesh Korea Singapore Belgium Guinea Rwanda
Brunei Darussalam Kyrgyz Republic Sri Lanka Benin Hungary Serbia
Cambodia Lao PDR Tajikistan Brazil Iceland Spain
China Malaysia Thailand Canada Ireland Sudan
Cook Islands Maldives Timor-Leste Chile Italy Sweden
Cyprus Mongolia Tonga Côte d’Ivoire Liberia Switzerland
Fiji Myanmar Turkey Croatia Luxembourg Tunisia
Georgia Nepal UAE Denmark Madagascar United Kingdom
Hong Kong, China New Zealand Uzbekistan Ecuador Malta Uruguay
“Very high shareholder India
Indonesia
Oman
Pakistan
Vanuatu
Vietnam
Egypt
Ethiopia
Morocco
Netherlands
Finland Norway
support from a large
Iran Philippines
4 10
membership base.” Prospective Regional Members
Armenia
Prospective Nonregional Members
Bolivia Nigeria
Kuwait* Djibouti Senegal
Moody’s, May 2022 Lebanon Kenya South Africa*
Papua New Guinea Libya Togo
Mauritania Venezuela
* Prospective founding Members. These are prospective members that signed the AIIB Articles of
Agreement in June 2015 but have not yet ratified it. Prospective members include
such prospective founding members and all applicants whose membership applications have
been approved by the Bank’s Board of Governors, but have not yet completed the membership
process.
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ROBUST USD100 billion USD19.1 billion 75%
SHAREHOLDER AIIB’s authorized capital stock.
Currently, 98% of AIIB’s allocated
Paid-in capital received as of Dec. 31,
2022.
AIIB's regional members hold
the majority of capital stock in
STRUCTURE AND capital has been subscribed. view of AIIB’s regional focus.1
EXCELLENT
CAPITAL STANDING In line with other MDBs, AIIB expects to benefit from preferred creditor treatment (e.g., no requirement to participate in
any rescheduling of national debt in any of its Members). Member liabilities to AIIB, such as sovereign loans or sovereign
guarantees on private sector projects, rank on par with their obligations to the IMF and other MDBs.
Ratings Status of AIIB Shareholders2 Regional Current Voting Nonregional Current Voting
Members Shareholding Power Members Shareholding Power
AAA: 13% China 30.7% 26.6% Germany 4.6% 4.2%
AA- or better: 28% India 8.6% 7.6% France 3.5% 3.2%
A- or better: 65% Russia 6.7% 5.8% UK 3.2% 2.9%
BBB- or better: 83% Korea 3.9% 3.5% Italy 2.7% 2.5%
Notes: Australia 3.8% 3.4% Spain 1.8% 1.7%
1. Unless amended by the Board of Governors.
2. Based on ratings from S&P, Moody’s and Fitch, if three Other 42 Members 22.5% 26% Other 40 Members 8.0% 12.6%
ratings are available, the median is applied; if only two Total: 47 Members 76.2% 72.9% Total: 45 Members 23.8% 27.1%
ratings are available, the lower rating is applied. Ratings
are then weighted by shareholding.
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EXCEPTIONALLY SOUND BALANCE SHEET
(as at Sep. 30, 2022)
Assets Liabilities and Equity Capacity for Investment Operations
(in USD) (in USD) ( in USD)
Investment Operations 100%
Maximum lending limit:
Portfolio1 Borrowings USD97.811 billion
USD16.518 billion USD23.918 billion
USD77.572 billion
Treasury Liquidity Portfolio2 Equity3 Subscribed callable capital
USD27.258 billion USD20.239 billion
Others Other Liabilities Investment
USD0.846 billion Reserves and retained earnings
USD3.114 billion USD2.733 billion Operations Assets
17%
TOTAL TOTAL USD19.393 billion Subscribed paid-in capital4
USD16.518 billion
USD46.890 billion USD46.890 billion
Notes:
1. Loan investments at amortized cost, bond investments at amortized cost (investment operations), investment in associate, investments at fair value through profit or loss (investment operations). Total amount of approved financings is USD38.81 billion
as at Dec. 31, 2022.
2. Cash and cash equivalents, term deposits and certificates of deposit, bond investments at amortized cost (treasury liquidity), and investments at fair value through profit or loss (treasury liquidity).
3. Paid-in capital receivables, funds deposited for cofinancing arrangements, derivative assets, intangible assets, property, plant and equipment, and other assets.
4. Paid-in capital comprises amounts received, amounts due but not yet received, and amounts not yet due.
For additional information, download AIIB’s Financial Statements
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AIIB AAA-PEER GROUP COMPARISON
FINANCIAL CREDENTIALS IN LINE WITH GLOBAL PEERS
AIIB ADB AfDB EBRD EIB IADB IBRD IFC3
Shareholders 106 68 81 71 27 48 189 186
Credit Rating AAA AAA AAA AAA AAA AAA AAA AAA
Paid-in Capital1 (USD billion) 19 7 10 7 24 12 21 22
Paid-in Capital/Total Subscribed Capital 20% 5% 5% 21% 9% 7% 7% 92%
Total Assets (USD billion) 47 282 48 80 599 152 321 99
Treasury Liquid Assets (USD billion) 27 45 18 34 112 39 79 42
Risk-adjusted Capital 63% 31% 23% 31% 23% 22% 27% 34%
Shareholders’ Equity2 (USD billion) 20 53 14 22 81 33 48 31
Source: S&P Global Ratings Supranationals Special Edition October 2022
Figures for AfDB (reported in UA) were translated into US dollars using Dec.31, 2022 exchange rate of 1UA = USD1.330844
Figures for EBRD and EIB (reported in EUR) were translated into US dollars using Dec.31, 2022 exchange rate of EUR1= USD1.059237.
Notes:
1. Paid-in capital comprises amounts received, amounts due but not yet received, and amounts not yet due.
2. Shareholder’s equity comprises paid-in capital, reserves, and retained earnings.
3. IFC does not benefit from callable capital.
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AIIB SUSTAINABLE DEVELOPMENT BONDS
INVEST IN OUR COMMITMENT TO SUSTAINABILITY
• AIIB’s Sustainable Development Bonds support the financing of a combination of green,
social and sustainable projects.
• AIIB’s Sustainable Development Bond Framework applies to all debt issued by AIIB. The
Framework specifies the following core components: 60.8% 60.8% 47.1% 35.3%
(i) Use of Proceeds, (ii) Process for Project Evaluation and Selection,
(iii) Management of Proceeds and (iv) Reporting.
• The Framework outlines how AIIB projects adhere to the principles set out in AIIB’s
Environmental and Social Framework and are designed to achieve environmentally and 31.4% 27.5% 23.5% 13.7%
socially sustainable development outcomes.
• AIIB’s investments contribute to Members’ efforts in achieving their Paris Agreement
objectives and support them in achieving their targets under the UN Sustainable
Development Goals (SDGs).
11.8% 9.8% 7.8% 2.0%
• Each AIIB project is mapped with at least one sector-related SDG and a few cross-cutting Note: The numbers represent the count of approved projects as a
SDGs. Nearly 60% of the projects approved in 2021 have some portion of financing percentage of the total count of approved projects in 2021 (including the
contributing to SDG 13: Climate Action (including climate mitigation or adaptation). COVID-19 Crisis Recovery Facility).
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EXPOSURES RELATED TO RUSSIA, BELARUS AND UKRAINE
“To date, the Russia-Ukraine conflict has not materially affected AIIB's operation.” S&P, January 2023
• On March 3, 2022, in response to the events taking place in Ukraine, AIIB announced in its official statement AAA-Rated MDBs' Exposures to
on the conflict in Ukraine that its Management has decided to place all activities relating to Russia and
Russia, Ukraine and Belarus
Belarus on hold and under review. These activities include all Russia- and Belarus-related projects in the
Bank’s rolling investment pipeline. TBE in USD million
• Ukraine is not a Member of AIIB; thus, the Bank has no business operations with or in Ukraine. AIIB also 10000
does not have any approved financings, or related exposures, in or to Belarus. As detailed below, AIIB has
8000
limited exposures in Russia and to the Russian ruble (RUB).
• The Bank remains in an exceptionally strong financial condition. AIIB's accounts are prepared in accordance 6000 Belarus
with International Financial Reporting Standards. Any exposures continue to be monitored and expected Russia
credit losses are being assessed accordingly. 4000
Ukraine
• As at Sept. 30, 2022, AIIB had total assets of USD43.87 billion and the following Russian-related exposures: Total
2000
• One RUB-denominated loan outstanding (fully drawn in December 2020) to a borrower in
Russia, totaling RUB24 billion. 0
AIIB EBRD EIB IBRD
• Four RUB-denominated bond issuances (each with an XS ISIN and issued through Euroclear /
Clearstream), two of which remain outstanding, totaling RUB10.7 billion as of Sept. 30, 2022. The Source: Fitch Ratings, Special Report War, Sanctions Test MDBs'
terms and conditions of these bonds allow for payments in USD in certain cases, including where Supranational and Preferred Creditor Status, Nov. 11, 2022
Note: AIIB, EIB data as of Dec. 31, 2021. EBRD, IBRD data as of
RUB is not used in the international banking community. These bonds were hedged at the time of June 30, 2022.
issuance to remove AIIB’s RUB interest rate and FX risk.
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AIIB IN THE Growing Global Partnerships Increasing Impact via Co-financing
• •
INTERNATIONAL
In 2018, AIIB was granted Permanent Observer status in Ability for the MDB community to take on larger
the deliberations of both the United Nations General infrastructure projects.
Assembly and the Economic and Social Council.
DEVELOPMENT • AIIB generally enforces the debarment decisions of some
• Enables project risk-sharing with other MDBs
and manage exposure limits.
COMMUNITY
MDBs that are parties to the MDB Agreement for Mutual
Enforcement of Debarment Decisions (AMEDD). • Cofinanced 93 projects as at June 30, 2022
• AIIB serves as the Administrator of the Multilateral • Collaboration benefits entire MDB community
Cooperation Center for Development Finance (MCDF) with cross-fertilization of project management
and host of its Secretariat at the AIIB HQ. experience.
• AIIB participated in the launch of joint deliverables
by MDBs:
• MDB Joint Nature Statement
and Planet
• MDB Joint Climate Statement
• Joint Report on MDBs' Climate Finance
• At COP27, AIIB joined the Energy Transition Accelerator
Financing Platform.
• AIIB and Global Energy Alliance for People and Planet
formed a strategic partnership to address energy
transition challenges.
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VISION
AND MISSION
2017 India: Gujurat Rural Roads
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AIIB Invests in Infrastructure for Tomorrow:
AIIB’S COMMITMENT TO
SUSTAINABLE GROWTH Addresses ecological Projects with sound
impacts like water and ROI, that raise
air quality, biodiversity, economic growth and
• AIIB’s VISION is a prosperous Asia based on pollution and climate increase productivity.
sustainable economic development and regional change.
cooperation.
• AIIB’s MISSION is Financing Infrastructure for SUSTAINABLE
INFRASTRUCTURE
Tomorrow. By investing in sustainable
infrastructure, AIIB unlocks new capital, new
technologies and new ways in which to address
climate change and to connect Asia, and the
world.
Gives inclusive access, particularly to
citizens excluded from access to
infrastructure services.
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A COMPREHENSIVE APPROACH TO
INVESTMENT IN SUSTAINABLE INFRASTRUCTURE
Strategic investments in four Thematic Priorities
2030 Corporate Strategy Targets
GREEN INFRASTRUCTURE
50% climate financing by 2025
Connectivity and Technology –
Green Regional enabled Private Capital
Infrastructure Cooperation Infrastructure Mobilization
CONNECTIVITY AND
How we finance: What we finance: REGIONAL COOPERATION
ENVIRONMENTAL AND SECTOR
SOCIAL FRAMEWORK STRATEGIES
25-30% cross-border connectivity
financing by 2030
• Energy • Water • Sustainable Cities • Investing in Equity PRIVATE SECTOR FINANCING
• Transport • Digital • •
Infrastructure
Private Capital
Mobilization
Financing operations
for Nonregional Members
50% private sector financing by 2030
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AIIB’S ENVIRONMENTAL AND SOCIAL FRAMEWORK
GUARANTEES THE ASSESSMENT OF ENVIRONMENTAL AND SOCIAL IMPACTS FOR ALL PROJECTS
Important features of AIIB’s ESF
• AIIB was established after the Paris Agreement and has
applied its Environmental and Social Framework (ESF) from • Commitment to assess climate change and
the start, ensuring that its operations achieve protect biodiversity.
environmentally and socially sustainable development Components of AIIB’s ESF • No funding for coal and excludes use of
asbestos from AIIB-financed projects.
outcomes based on its Articles of Agreement. • Vision Statement
• • Strong provisions for involuntary
• AIIB developed its ESF by benchmarking best international Environment and Social Policy (ESP)
resettlement, land acquisition and
practices and learning from its peer institutions and • Environmental and Social Indigenous Peoples.
continues to refine the ESF as necessary. Standards (ESS)
• Supports gender equality, provides
• Combined with AIIB’s Corporate Strategy, sector strategies • Environmental and Social Exclusion measures to control gender-based violence.
List (ESEL) • Provision of equal opportunities for persons
and operational policies, the ESF guarantees the
identification and management of environmental and social with disabilities.
risks and impacts in the preparation and implementation of • Robust transparency and accountability
AIIB-financed projects. mechanisms.
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OMAN: CLIMATE MITIGATION
Ibri II 500MW Solar PV Independent Power Plant Project
Approval Date AIIB Committed Amount Financing Type
March 2020 USD60 million Nonsovereign
AIIB is helping Oman improve the balance between power supply and demand as
well as reduce its dependence on gas and other fossil fuels for electricity generation
through an investment of USD60 million in a 500 MW solar PV power plant.
AIIB’s involvement has encouraged wider support from regional investors and
institutions for the project, which will make the largest utility-scale independent solar
power plant in Oman. Once fully constructed and operational, it will generate 1,598
GWh of electricity and avoid about 790,000 tons of CO2 emissions annually. In line
with the government’s National Energy Strategy 2040, which aims to generate 10% of
the country’s energy from renewable sources by 2025—and increase this to 30% by 2020 Oman: Ibri II 500MW Solar PV Independent Power Plant Project
2030—the project contributes to diversifying Oman’s economy and its electricity
generation toward a more balanced and environmentally sustainable future. AIIB’S THEMATIC PRIORITIES
GREEN INFRASTRUCTURE
AIIB prioritizes green infrastructure and supports its Members
meet their environmental and related development goals by
financing projects that deliver local environmental
improvements and investments dedicated to climate action.
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INDIA: CLIMATE MITIGATION
Delhi-Meerut Regional Rapid Transit System
Approval Date AIIB Committed Amount Financing Type
October 2020 USD500 million Sovereign
AIIB is investing USD500 million to develop and construct an 82 km rail-based rapid
transit system in India to improve the efficiency, safety, social inclusiveness, and
environmental sustainability of transport in the Delhi–Meerut corridor of the National
Capital Region (NCR).
The Project will connect Sarai Kale Khan in Delhi to Modipuram in Meerut via
Ghaziabad, the densely populated sections of the NCR. With a design speed of 180 km
per hour (km/h) and an average speed of 100 km/h, the system is expected to
significantly reduce vehicle travel time from 3-4 hours to 1 hour and cut about 258,035
tons of CO2 emissions annually compared with existing road-based transport. 2020 India: Delhi-Meerut Regional Rapid Transit System
The faster, more reliable, and better-quality integrated transport services will benefit
AIIB’S THEMATIC PRIORITIES
numerous passengers. Improved mobility will also facilitate the expansion of economic
activities from urban centers to the broader NCR, providing new job opportunities and CONNECTIVITY AND REGIONAL COOPERATION
benefitting residential and commercial establishments along the corridor. AIIB prioritizes projects that facilitate better domestic and cross-
border infrastructure connectivity within Asia generating direct
measurable benefits in enhancing regional trade, investment, digital
and financial integration across Asian economies and beyond.
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INDONESIA:
Multifunctional Satellite PPP Project
Approval Date AIIB Committed Amount Financing type
September 2020 USD150 million Nonsovereign
AIIB approved USD150 million for its first satellite-based infrastructure development
program that will allow people in Indonesia to communicate across the
archipelago. The financing will be used to develop, launch and operate a
telecommunications satellite that will provide connectivity to around 45 million
people in some of the most remote parts of Indonesia.
The project is carried out under an innovative public-private partnership (PPP) that
brings together the Indonesian government and the private sector with help from
AIIB. Upon completion of the project, students in nearly 94,000 schools will enjoy
digital inclusion through online education, around 3,700 health centers will have 2020 Indonesia: Multifunctional Satellite PPP Project
improved connectivity, and 3,900 local governments will be linked with national
headquarters. This in turn will bring knowledge, trade opportunities, improved AIIB’S THEMATIC PRIORITIES
health care and government services, thus transforming lives for the better.
TECHNOLOGY-ENABLED INFRASTRUCTURE
AIIB supports projects where the application of technology
delivers better value, quality, productivity, efficiency, resilience,
sustainability, inclusion, transparency or better governance along
the full project life cycle.
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MULTICOUNTRY:
CLIMATE ADAPTATION
Lightsmith Climate Resilience Partners
Approval Date AIIB Committed amount Financing type
October 2020 USD30 million Nonsovereign
Lightsmith Climate Resilience Partners is a specialist growth private equity fund
focusing on global climate resilience solutions. The fund adopts a blended finance
structure to incentivize private investments, including a risk-absorbing junior layer of
capital. AIIB committed USD30 million as anchor capital. In January 2022, the fund
achieved its final closing with USD186 million committed capital.
In August 2020, the fund took a USD16 million stake in the Malaysia subsidiary of
SOURCE Global, a water-harvesting technology company, As a result, more than
7,300 new beneficiaries have received drinking water from water-harvesting panels.
In December 2021, the fund made a USD15 million investment into WayCool Foods & 2020 Multicountry: Lightsmith Climate Resilience Partners
Products, an Indian agricommerce company that deploys digital technology to
improve the efficiency of food distribution. WayCool technology substantially reduces AIIB’S THEMATIC PRIORITIES
food waste in its supply chain and improves resilience of smallholder farmers.
PRIVATE CAPITAL MOBILIZATION
AIIB supports projects that directly or indirectly mobilize private
financing into sectors within its mandate. AIIB will serve a catalytic
role to increase private and other investors’ appetite for investing in
emerging market infrastructure as well as other productive sectors
that are associated with and complementary to core infrastructure.
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AIIB SUSTAINABLE DEVELOPMENT BONDS IMPACT REPORT
HIGHLIGHTS OF SECTOR OUTCOMES AS OF THE END OF 2021
AIIB directly AIIB’s energy sector AIIB helped save AIIB helped more than In 2021, AIIB’s climate
financed projects approved by 26,334 GWh 46 million people finance amounted to
4,502 MW 2021 are expected to
of primary energy gain access to water
renewable avoid 16.3 million through its supply and sanitation
USD2.9 billion, or
energy capacity. tons of carbon dioxide investments to services and receive 48% of total approved
improve energy improved irrigation and financing.
equivalent (CO2e) of
efficiency. drainage infrastructure
greenhouse gas (GHG)
or protection from
emissions per year.
water disasters.
• Under its Sustainable Development Bond Framework, AIIB has committed to annual impact reporting on its overall
portfolio and project-level results reflecting environmental and social benefits generated by its financing.
• The Impact Reports include data on AIIB’s bond issuance profiles and a comprehensive analyses of its project portfolio. It
also contains selected project stories from key infrastructure sectors to show how AIIB is making positive environmental
and social impacts by investing in sustainable infrastructure and by catalyzing private capital in Asia and beyond.
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INVESTMENT
PORTFOLIO
2017 Tajikistan: Nurek Hydropower Rehabilitation, Phase I
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AIIB INVESTMENT PROJECT CYCLE
INCREASING DEVELOPMENT IMPACT WITH SOVEREIGN AND NONSOVEREIGN-BACKED FINANCING
SOVEREIGN-BACKED NONSOVEREIGN-BACKED
FINANCING FINANCING
Strategic Alignment & • Project ideas and proposals are screened for their strategic fit with AIIB’s mandate
Screening, Strategic Alignment and priorities. All AIIB-financed projects must comply with the Standards and
Value addition Exclusion List in AIIB’s Environmental and Social Policy.
Due Diligence and
Impact Assessment • Conditions and targets are put in place to ensure the project complies with AIIB’s ESF.
Value Addition Policy Alignment • The sector strategies provide guidelines on prospects to generate additional positive
environmental and social value.
Project Design &
Project Preparation and Transaction Quality
Target Results • Financing for the project is approved either by the Board of Directors, or, if
Board Approval approval authority has been delegated by the Board, by the President.
Implementation Readiness Financial Returns
• Clients are required to conduct project procurement in accordance with AIIB’s
Procurement Policy.
Implementation, Implementation Monitoring • There is ongoing monitoring of projects and their results through Project
Monitoring and Closing Implementation and Monitoring Reports (PIMRs).
Project Completion & Evaluation • AIIB’s ESF supports best practices with use of project-level Grievance Redress
Mechanisms to address complaints from project stakeholders, and the
independent Project-affected People’s Mechanism.
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INVESTMENT OPERATIONS
AN EXPANDING BUSINESS PORTFOLIO
Approved Financing per Financing Type Approved Projects per Year
(as at Dec. 31, 2022) (as at Dec. 31, 2022)
60 12
50 10
NUMBER OF PROJECTS
37% 40 8
USD BILLIONS
NONSOVEREIGN
PROJECTS 202 30 6
USD8.193 billion PROJECTS 20 4
63% 10 2
SOVEREIGN 0 0
PROJECTS 2016 2017 2018 2019 2020 2021 2022
USD30.615 billion
Number of Projects Approved financing (USD billions)
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INVESTMENT OPERATIONS* *Total Investment Operations
Committed Financing USD33.79 billion
DIVERSE BUSINESS PORTFOLIO (as at Dec. 31, 2022)
WITH LOANS AND INVESTMENTS IN 33 MEMBERS
Committed Financing Amount by Sector
Digital Infrastructure and
Committed Financing Amount by Member – Top 10 Technology: 1.9%
(in USD) Water Educational Infrastructure: 0.7%
9.0 Rural Infrastructure and Agriculture
8.41
Urban Development: 0.2% 53.1%
8.0
Others: 0.2%
Transport 5.9%
7.0
Rural Infrastructure and Agriculture
6.0
Development 8.8%
USD Billions
5.0 Multi-sector
4.0 Energy
3.57
3.17 3.08
3.0 3.04 Education Infrastructure 10.9% 36.5% 29.1%
2.18 2.06
2.0 Digital Infrastructure and Technology
1.51
1.24 0.96
1.0 CRF-Public Health
0.0 CRF-Finance/Liquidity
CRF-Economic Resilience/PBF 17.9%
18.3%
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COVID-19 CRISIS RECOVERY FACILITY
TOTAL FINANCING UP TO USD20 BILLION
EXTENDED UNTIL END-2023
For Facility projects that enter into the pipeline
after Feb. 24, 2022, AIIB will consider a
narrower scope of eligible pandemic-related
responses and co-finance such projects with
peer MDBs:
• Vaccine procurement, distribution and Economic resilience Financing of immediate health Financings to address liquidity
To mitigate the economic impact sector needs constraints for clients
deployment of both vaccines and
on AIIB Members’ economies, AIIB can support needed With this support, clients can
therapeutics. AIIB can provide financing to emergency public health overcome liquidity constraints
• Policy-Based Financing (PBF) for enhanced supplement government responses, including the and maintain critical long-term
productive expenditures to development of health system investments that may have to
pandemic response, preparedness and
support the social and economic capacity and the provision of be curtailed, delayed or
recovery. response and recovery. essential medical equipment and suspended in the absence of
• Financing of essential COVID-19 emergency supplies to combat COVID-19. AIIB financing.
healthcare or urgent expenditure needs.
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CREDIT
STRENGTHS
2021 India: Chennai Metro Rail Phase 2 Project Corridor 4
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AAA-CREDIT RATINGS
TOP RATINGS WITH STABLE OUTLOOK FROM LEADING AGENCIES
Summary rating rationale
May 2022 June 2022 Strong capital commitment from
January 2023
diversified sovereign shareholder
base.
AAA Outlook Stable Short-term: A-1+ Short-term: Prime-1 Short-term: F1+
Set to have an important mandate of
AIIB Strengths: filling the infrastructure financing gap
We don't expect the Russia- A strong governance framework AIIB continues to benefit from
in Asia.
Governance Ukraine conflict will materially that is in line with other AAA-rate 'strong' preferred creditor status
affect AIIB's operation. peers. (PCS). Strong governance and risk
management framework.
AIIB has a sizable capital AIIB’s strong capital position implies
. AIIB's 'excellent' capitalisation
Capital endowment of which 20% is paid-in ample capacity to absorb losses. assessment is based on Fitch's
Excellent capitalization with very high
capital. In our view, this reinforces projected liquidity position.
Management AIIB's role, enabling it to become
expectation.
one of the largest MLIs globally. Very high strength of member
We expect AIIB's capital and AIIB's liquidity policy is in line with, Given large paid-in capital and
support.
liquidity to remain a significant and in some cases more stringent increasing market presence, the
Liquidity strength compared with peers and than, those of its rating peers. bank will remain in excess Preferred creditor status.
underpin its financial profile. liquidity over the forecast
period. 0% risk weight under Basel
Credit ratings do not constitute investment or financial advice, and credit ratings are not recommendations to purchase, hold or sell particular securities.
Framework
Credit ratings do not comment on the suitability of an investment for any particular investor. There is no assurance that any rating will remain in effect for any given period of time or that any rating will not be
revised or withdrawn entirely by a rating agency in the future if, in its judgment, circumstances so warrant.
28*OFFICIAL USE ONLY
ABOUT AIIB VISION AND MISSION INVESTMENT PORTFOLIO CREDIT STRENGTHS FUNDING STRATEGY ANNEX
ESG CREDENTIALS
RATINGS WITH STABLE OUTLOOK FROM LEADING AGENCIES
KEY HIGHLIGHTS:
Summary rating rationale
• Strong environmental strategy • Strong commitment to • AIIB forms part of the more
• Advanced at environmentally exclusion based on the progressive development banks, Good management of ESG topics
responsible financing companies’ activities. publicly disclosing on its website
• Strong stakeholder relations • Strong policy commitment individual projects financed Maintains low exposure to ESG risks
• Robust internal controls and to integrate ESG factors. (including project overviews,
risk management • Selects best‐in‐class financing information and project Robust Environmental and Social
companies according to ESG documents). Framework
factors. • Comprehensive lending programs
with high social benefit. Institutional commitment to UN SDGs
and Paris Agreement
Reliable internal controls and
transparent disclosure of
documentation
Advanced Low Risk 13.9 Prime C+
September 2021 April 2021 April 2019
Sector rank: 7/12
Credit ratings do not constitute investment or financial advice, and credit ratings are not recommendations to purchase, hold or sell particular securities.
Credit ratings do not comment on the suitability of an investment for any particular investor. There is no assurance that any rating will remain in effect for any given
period of time or that any rating will not be revised or withdrawn entirely by a rating agency in the future if, in its judgment, circumstances so warrant.
29*OFFICIAL USE ONLY
ABOUT AIIB VISION AND MISSION INVESTMENT PORTFOLIO CREDIT STRENGTHS FUNDING STRATEGY ANNEX
KEY FINANCIAL AND ECONOMIC CAPITAL2
RISK MANAGEMENT POLICIES The overarching principal
OVERVIEW OF CAPITAL AND RISK MANAGEMENT driving risk allocation3
• Prudent risk management policies with economic capital being the fundamental measure of
risk appetite utilization. Financing Credit Risk
• Manages risks, such that AIIB is financially sustainable on a standalone basis, preventing the Equity Investment Risk
need to require recourse to its callable capital. Market Risk including Asset & Liability Risk
• All risks are managed to defend, preserve and protect AIIB’s triple-A ratings. Counterparty Credit Risk
• AIIB’s Risk Appetite Statement requires that AIIB risk appetite is allocated below its capacity, Operational Risk
as determined by its available capital (i.e., received paid-in capital, reserves and retained
earnings).
• Total amount outstanding of loans, equity investments, guarantees and other types of
financings shall not exceed the total amount of AIIB’s unimpaired subscribed capital, reserves
and retained earnings.1
TOTAL CAPITAL UTILIZATION4
• Market risk is managed within internally set Value-at-Risk (VaR) and duration limits.
Available Capital USD19.9 billion
Notes: 1. Source: AIIB Articles of Agreement, Article 12.1 .
Total Current Capital Usage 31%
2. Economic Capital is defined as the capital required to withstand losses over one year to a 99.99 percentile level of confidence.
3. The following financial risks are managed outside the economic capital framework: liquidity risk and model risk.
No economic capital is allocated for other nonfinancial risks (compliance risk, integrity risk, and environmental and social risk).
4. Based on current usage of USD6.253 billion of economic capital, as at Sep. 30, 2022
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ABOUT AIIB VISION AND MISSION INVESTMENT PORTFOLIO CREDIT STRENGTHS FUNDING STRATEGY ANNEX
PRUDENT LIQUIDITY Treasury Liquid Assets versus Required Liquid Assets
(rolling 36 months)
RISK MANAGEMENT 30.0 1000%
OVERVIEW OF LIQUIDITY MANAGEMENT 25.0 800%
USD Billions
20.0
600%
15.0
LIQUIDITY PORTFOLIO 400%
10.0
• Managed to ensure availability of liquidity via conservative and stress-tested models. 5.0 200%
• Eligible investments: 0.0 0%
Dec 2018 Dec 2019 Dec 2020 Dec 2021 Sep 2022
• Money market funds (AAA rating)
• Sovereign, Supranational, Agency (SSA)—senior debt (minimum A rating) Liquid Assets (USD Billions) Liquid Assets/Required Liquidity (%)
• Corporate—senior debt (minimum AAA rating)
• Other Financials (minimum A-minus rating) Treasury Liquid Assets by Rating1
• External managers used for portfolio diversification.
LIQUIDITY RISK 26%
• Liquidity portfolio should cover at least 40% of net cash requirements for the upcoming 36 AAA
months and 100% of stressed net cash requirements for any upcoming 12-month period. 40%
AA+ to AA-
• Liquidity expected to remain well in excess of policy requirements.
A+ to A-
Note: 1. Data as at Sep. 30, 2022. 34%
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FUNDING
STRATEGY
2020 Indonesia: Multifunctional Satellite PPP Project
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ABOUT AIIB VISION AND MISSION INVESTMENT PORTFOLIO CREDIT STRENGTHS FUNDING STRATEGY ANNEX
AIIB FUNDING PROGRAM 10
Annual Issuance Amount (in USD)
8.8bn 8.5bn
PREMIERE ISSUER IN INTERNATIONAL MARKETS 8 7.1bn
USD Billions
6
• Two main pillars of capital market funding:
4 3.4bn
2.5bn
PUBLIC Global benchmark format in G10 and SDR currencies 2
TRANSACTIONS Large size, liquid secondary market trading
0
Variety of currencies, customization at investor demand 2019 2020 2021 2022 2023
REVERSE ENQUIRY
ISSUES Buyback program provides liquidity backstop to investors
Maturity Profile (in USD)
• Develop a broad range of unsecured funding instruments and sources of liquidity.
6.7bn
7
• Diversify in terms of currency and investor type. 5.8bn 6.1bn
6 5.4bn
• Deliver comprehensive and continuous investor marketing. 5
4 3.6bn
USD Billions
• Utilize money market funding for bridge financing.
3
2.0bn
• AIIB’s buyback program covers both public benchmarks and private placements. Buyback 2
transactions are executed through dealers who have existing relationship with AIIB. 1
0.1bn 0.1bn 0.1bn
• 2023 borrowing authority of USD10 billion. This is expected to rise gradually to reach circa 0
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
USD15 billion per annum by late 2020s.
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DIVERSE ISSUER AIIB Outstanding Borrowings
A GROWING FUNDING PROGRAM USD Benchmark
69.9%
Funding Type AIIB’s Borrowing Programme Format
GEL Local
U.S. SEC-registered Shelf USD Global Benchmark Currency
0.3%
Non-USD Benchmarks,
CNY Benchmark
Global Medium Term Note Programme FRNs, Eurobonds and
2.2%
Capital markets private placements AUD Benchmark
A$ and NZ$ Debt Issuance Programme Kangaroo / Kauri bond 2.7%
GBP Benchmark Reverse Enquiry
Renminbi Bonds Issuance Programme Panda bond
9.7% 15.2%
CNH
Money markets Euro-Commercial Paper Programme ECP
THB
• AIIB liabilities are assigned 0% risk weight and HQLA1 designation by the Basel Committee ZAR
on Banking Supervision.1 PHP
MXN USD
• AIIB securities are eligible collateral for central bank operations, including; the Federal IDR
Reserve System, the Bank of England (Level B), the European Central Bank, the Reserve Bank RUB
of Australia (AUD only) and the Reserve Bank of New Zealand (NZD only).
EUR
Notes:
1. AIIB has achieved 0% risk weight and HQLA1 status in the following jurisdictions: European Union (EU); the United Kingdom (UK); Norway; Canada; NZD
Hong Kong, China; Korea; Singapore and Switzerland. AIIB bond issuance is also 0% risk weighted in Australia, Japan, New Zealand, South Africa and TRY
INR
China.
AUD
HKD
34*OFFICIAL USE ONLY
ANNEX
2021 Philippines: Second Health System Enhancement to Address and Limit COVID-19 under Asia Pacific Vaccine Access Facility Project
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ABOUT AIIB VISION AND MISSION INVESTMENT PORTFOLIO AIIB CREDIT STRENGTHS FUNDING STRATEGY ANNEX
FINANCIAL OVERVIEW
KEY FINANCIAL FIGURES (AS AT SEPTEMBER 30, 2022)
BALANCE SHEET INCOME STATEMENT
Sep. 30, 2022 Dec. 31, 2021 For the nine months ended For the nine months ended
In thousands of US Dollars In thousands of US Dollars September 30, 2022 September 30, 2021
(unaudited) (audited)
(unaudited) (unaudited)
Assets
Interest income 371,340 179,966
Cash and cash equivalents 2,745,592 2,109,608
Term deposits 10,024,036 11,748,908 Interest expense -200,690 -141,389
Investments at fair value through profit or loss 11,337,598 10,565,949 Net Interest Income 170,650 38,577
Loan investments, at amortized cost 15,103,016 12,245,887 Net fee and commission income 26,481 17,201
Bond investments, at amortized cost 4,517,960 2,495,119 Net gain on financial instruments 155,355 193,271
Paid-in capital receivables 314,842 303,695
measured at fair value through
Derivative assets 525,749 248,371
profit or loss
Investment in associate 47,915 33,842
Net loss on financial instruments -13,172 -643
Property and equipment 4,249 4,330
measured at amortized cost
Intangible assets 6,627 5,107
Share of gain/(loss) on investment 573 -603
Other assets 2,262,143 477,323
in associate
Total Assets 46,889,727 40,238,139 Impairment provision -158,673 -17,796
General and administrative expenses -131,948 -115,963
Liabilities Net foreign exchange loss -97,439 -42,614
Operating (loss)/profit for the period -48,173 71,430
Borrowings 23,918,457 19,267,851
Accretion of paid-in capital receivables 1,866 3,880
Derivative liabilities 2,414,345 563,604
Net (loss)/profit for the period -46,307 75,310
Prepaid paid-in capital 0 1,200
Other liabilities 318,255 239,566 Other comprehensive income 82,321 -37,659
Total Liabilities 26,651,057 20,072,221 Total Comprehensive Income 36,014 37,651
Total Members’ Equity 20,238,670 20,165,918
Total Liabilities & Members’ Equity 46,889,727 40,238,139 36*OFFICIAL USE ONLY
ABOUT AIIB VISION AND MISSION INVESTMENT PORTFOLIO AIIB CREDIT STRENGTHS FUNDING STRATEGY ANNEX
AIIB ENERGY SECTOR STRATEGY
SUSTAINABLE ENERGY FOR TOMORROW
• AIIB’s Energy Sector Strategy sets the framework, principles, and operational Key Updates to Energy Sector Strategy
modalities that guide AIIB’s energy sector engagement.
Increased focus on clean energy solutions:
• In November 2022, AIIB's Board of Directors approved an update to the Energy • Promote clean energy solutions, their supporting infrastructure such as smart
Sector Strategy. The update reflects AIIB’s commitment to tackle climate change grids and energy storage as well as new technologies such as clean hydrogen.
and support both the energy transition and its Members’ net-zero commitments.
It is fully in line with AIIB's commitment to align all financing operations with the Stricter limits on the financing of fossil fuels:
goals of the Paris Agreement. • Thermal coal mining, coal-fired power and heating plants, and projects that
are functionally related to coal are excluded from AIIB’s financing.
Energy Strategy Guiding Principles • Oil sector investments are excluded with two very limited exceptions to
improve basic access in hard-to-reach areas and to control methane emissions.
1. Promote Energy Access and Security • Upstream natural gas exploration and drilling activities are excluded from
2. Realize Energy Efficiency Potential AIIB’s financing.
3. Reduce the Carbon Intensity of Energy Supply • Only selective support for mid- and downstream natural gas projects that are
transitional in nature, based on a set of criteria that are harmonized with the
4. Manage Local and Regional Pollution joint MDB Paris Alignment assessment methodology.
5. Catalyze Private Capital • AIIB will support initiatives to commercialize CO2 abatement
technologies such as carbon capture and storage, and the reduction of
6. Promote Regional Cooperation and Connectivity
methane leakage and gas flaring.
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ABOUT AIIB VISION AND MISSION INVESTMENT PORTFOLIO AIIB CREDIT STRENGTHS FUNDING STRATEGY ANNEX
GOVERNANCE AT AIIB
GOVERNANCE AT AIIB REFLECTS GLOBAL BEST PRACTICES
• AIIB’s governance structure is equivalent to global peer MDBs.
• AIIB’s voting power structure benefits the smaller shareholders, as it increases their relative
voting power above their shareholding percentage over time.
• Amendments to the Bank’s governance structure and Articles of Agreement are decided by
the Board of Governors and require a supermajority vote.
• Meetings of the Board of Governors and the Board of Directors require a quorum of above
50% of officials representing not less than 2/3 of the total voting power of Members.
• Due to voting rules, the top 5 shareholders cannot endorse or approve a decision in the Board
of Governors with their votes.
• Uniquely to AIIB, its Accountability Framework offers the Board of Directors the possibility to
delegate project approval and clearly assign accountability and responsibilities to
Management.
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ABOUT AIIB VISION AND MISSION INVESTMENT PORTFOLIO AIIB CREDIT STRENGTHS FUNDING STRATEGY ANNEX
GOVERNANCE AT AIIB
GOVERNANCE STRUCTURES AND BOARDS COMPOSITION
BODY COMPOSITION AND PURPOSE CRITICAL DECISION MAKING
Super majority decisions, inter alia:
• Each AIIB Member appoints a Governor.
• All powers of AIIB are vested in the • Changes to paid-in capital subscription, reducing the • Increase or decrease in AIIB’s authorized
Board of Governors. percentage of capital stock held by regional members capital stock
below 75% of the total subscribed capital stock • Revise the composition of the Board of
• Increase AIIB’s gearing ratio above 1:1 Directors
• Election, suspension or removal of the President • Suspension or restoration of membership
BOARD OF GOVERNORS • Amend the AIIB Articles of Agreement
• Composed of 12 Directors • Supervises the management and operation of the Bank on a regular basis
• 9 elected by regional Members • Approves the strategy, annual plan and budget of AIIB
• 3 elected by nonregional Members
• Nonresident board Majority representing not less than ¾ of the total voting power of the Members required for:
• Each Director serves a two-year term and may be re- • Decisions on major operational and financial policies
BOARD OF DIRECTORS elected • Delegation of authority to the President concerning Bank operations
• Supervises the management and operation of the Bank
• Elected by the Board of Governors • Legal representative of AIIB and Chief of the staff of the Bank
PRESIDENT • Must be a national of a regional Member • Chair of the Board of Directors, receives advice from the Executive Committee, and may take part
• May serve up to two 5-year terms in decisions of the Investment Committee
• Appointed by the Board of Directors upon • Execute decisions taken by governance bodies
recommendation of the President
VICE
PRESIDENTS 39*OFFICIAL USE ONLY
ABOUT AIIB VISION AND MISSION INVESTMENT PORTFOLIO AIIB CREDIT STRENGTHS FUNDING STRATEGY ANNEX
GOVERNANCE AT AIIB
VOTING POWER OF SHAREHOLDERS AT THE BOARD OF GOVERNORS
TOTAL OF
ALL VOTES
85% 12% 3% Founding
TOTAL
VOTING POWER**
Share votes Basic votes member
votes*
Chair ascertains the sense of the meeting
If a formal vote is requested
SUPER MAJORITY: 2/3 of the total number of Governors, representing not less than 75% At AIIB, generally, all
matters before the Board
of total voting power of Members.
of Governors and the
SPECIAL MAJORITY: Majority of total number of Governors, representing a majority of
Board of Directors shall
total voting power of Members. be decided by a majority
MAJORITY OF VOTES CAST: Above 50% of all votes cast. of the votes cast.
* Each founding member is assigned 600 additional founding member votes
** Basic votes have the effect of increasing the relative voting power of smaller shareholders, above their shareholding percentage.
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ABOUT AIIB VISION AND MISSION INVESTMENT PORTFOLIO AIIB CREDIT STRENGTHS FUNDING STRATEGY ANNEX
GOVERNANCE AT AIIB
VOTING MAJORITIES IN THE BOARD OF DIRECTORS
Composition of Board of
Directors* TWO VOTING THRESHOLDS:
Chair
9 Regional Directors • Majority of the votes cast
ascertains the
sense of the • Majority representing not less
Decision-making meeting If a formal vote is than 3/4 of the total voting
3 Nonregional Directors requested** power of Members
*A majority of the Directors shall constitute a quorum for any meeting of the Board of Directors, provided such majority represents not less than two-thirds of the total voting power of the members.
**Directors represent members whose Governors have elected them as well as members whose Governors assign their votes to them.
41*OFFICIAL USE ONLY
ABOUT AIIB VISION AND MISSION INVESTMENT PORTFOLIO AIIB CREDIT STRENGTHS FUNDING STRATEGY ANNEX
GOVERNANCE AT AIIB
COMPARISON OF AIIB’S VOTING STRUCTURE WITH PEER MDBS
MDB VOTING: SELECTED QUALIFIED MAJORITY DECISIONS
Voting Power and Required Proportion of Members to Decide on Selected Issues
Voting Power
Amendment of Articles Capital Increase Change in Board Seats Election of the President Membership Admission
of Top 5 Shareholders
More than 50% with
AIIB 75% with 2/3 of BoG 75% with 2/3 of BoG 75% with 2/3 of BoG 75% with 2/3 of BoG
more than 1/2
47.7%
ADB 75% with 2/3 of BoG 75% with 2/3 of BoG 67% with 1/2 of BoG 50% with 1/2 of BoG 75% with 2/3 of BoG 40.5%
AfDB* 75% with 2/3 of BoG 75% with 2/3 of BoG 75% with 2/3 of BoG 50% 50% 32.3%
EBRD 80% with 3/4 of BoG 75% with 2/3 of BoG 75% with 2/3 of BoG 50% with 1/2 of BoG 75% with 2/3 of BoG 45.3%
IADB* 75% with 1/2 of BoG 75% with 3/4 of BoG 75% with 2/3 of BoG 50% with 1/2 of BoG 50% 63.4%
IBRD 85% with 3/5 of BoG 75% 80% 50% 50% 36.9%
*Some IADB and AfDB decisions have regional/nonregional requirements
Source: Lichtenstein, N. 2018. A Comparative Guide to the Asian Infrastructure Investment Bank. Oxford University Press.
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ABOUT AIIB VISION AND MISSION INVESTMENT PORTFOLIO AIIB CREDIT STRENGTHS FUNDING STRATEGY ANNEX
AIIB USD2 BILLION 5-YEAR GLOBAL
SUSTAINABLE DEVELOPMENT BOND
HIGHLIGHTS Distribution By Region ISSUER AIIB
Americas Aaa/AAA/AAA
• Priced USD2 billion with a spread of SOFR MS +63bps 15% Issuer Rating:
equivalent to UST+43.8bps. This transaction reinforces (stable/ stable/stable)
AIIB’s commitment to investors to maintain a liquid USD Asia Format: Global (SEC-registered)
curve. 37%
EMEA Amount: USD2 billion
• Over USD2 billion in orders from over 55 investors 48%
across the globe. Maturity date: September 14, 2027
• Pricing cements AIIB’s positioning among its MDB Coupon: 3.375%
peers. Distribution By Investor Type
Reoffer Yield 3.812% (S/A)
• Well-diversified book by investor type and geography. AM/Pens/Ins Other
10% 0% Re-offer price: 99.720%
• Very high-quality order book, evidenced by the
significant proportion of allocations going to central Re-offer spread vs. m/s SOFR MS +63bps
banks and official institutions (50%).
CB/OI Re-offer spread vs. Bmk UST + 43.8bps
• Prior to the issuance, AIIB met with 93% of investors. Bank
40%
50%
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ABOUT AIIB VISION AND MISSION INVESTMENT PORTFOLIO AIIB CREDIT STRENGTHS FUNDING STRATEGY ANNEX
AIIB INAUGURAL GBP800 MILLION
5-YEAR SUSTAINABLE DEVELOPMENT BOND
HIGHLIGHTS Distribution By Region ISSUER AIIB
Americas…
• Priced GBP800 million with a spread of UKT+33bps
EMEA Issuer Rating:
Aaa/AAA/AAA
(UKT 2% 09/07/2025). (stable/ stable/stable)
(ex. UK)
13%
• Over GBP2 billion in orders from over 74 investors UK Format: GMTN
across the globe. 54%
Asia Amount: GBP800 million
• Price tightened by 2bps with no New Issue Concession 25%
Maturity date: December 15, 2025
(NIC).
• Prior to issuance, AIIB met with investors who made Coupon: 0.20%
Distribution By Investor Type
up 80% of the allocated book in GBP terms. Reoffer Yield 0.242% annual
• The excellent investor reception was a testament to Fund Managers/
Re-offer price: 99.803%
Insurance/
AIIB’s significant investor work in recent years and Pension
excellent strategic market approach. This transaction 21% UKT+33bps
Re-offer spread vs. Bmk
was a successful start for future diversification CB/OI (UKT 2% 09/07/2025)
50%
requirements and opportunities.
Banks/PBs
29%
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ABOUT AIIB VISION AND MISSION INVESTMENT PORTFOLIO AIIB CREDIT STRENGTHS FUNDING STRATEGY ANNEX
AIIB INAUGURAL AUD500 MILLION
5-YEAR SUSTAINABLE DEVELOPMENT BOND
HIGHLIGHTS Distribution By Region ISSUER AIIB
• The AUD debut saw strong take-up both in Australia EMEA Aaa/AAA/AAA
13% Issuer Rating:
(32%) and across the Asian region (55%), (stable/ stable/stable)
demonstrating the continued growth of AIIB’s
footprint across capital markets with a number of
Asia Format: Kangaroo Bond
55%
investors participating in an AIIB transaction for the Amount: AUD500 million
first time. Australia
32% Maturity date: May 6, 2026
• Books closed in excess of AUD665 million, and the
final spread was set at ASW+22bps, equivalent to Coupon: 1.00%
+30.85bps over the ACGB due April 2026 and a re- Distribution By Investor Type
offer yield of 1.0025%. Reoffer Yield 1.0025% s.a.
Trading
• This successful transaction highlights AIIB’s 16% Re-offer price: 99.988%
commitment to building liquid curves in all core
Asset Bank
currencies under our diversified funding program. Treasury Re-offer spread vs. Bmk ASW+22bps
Manager
19% 34%
CB / OI
31%
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ABOUT AIIB VISION AND MISSION INVESTMENT PORTFOLIO AIIB CREDIT STRENGTHS FUNDING STRATEGY ANNEX
AIIB INAUGURAL RMB3 BILLION 3-YEAR
SUSTAINABLE DEVELOPMENT BOND (PANDA BOND)
(COVID-19 LABEL)
HIGHLIGHTS Distribution By Region ISSUER AIIB
EMEA
• Priced RMB3 billion with a spread of CDB-23bp 13% Issuer Rating:
Aaa/AAA/AAA
equivalent to CGB+7bp. (stable/ stable/stable)
Asia
• Over RMB8.3 billion in orders from 32 investors, final
55%
Format: PANDA BOND
allocation to 16 investors, 35% onshore and 65% China Inter-bank
offshore.
Australia Market:
32% Bond Market
• Represents the tightest spread to CDBs ever Amount: RMB3 billion
achieved in the Panda market and the first issuer to Distribution By Investor Type
price at a negative spread. Maturity date: June 15, 2023
Trading
• Good participation from offshore investors. 16%
Coupon: 2.40%
Bank
• Sustainable Development Bond with the NAFMII Asset
Manager
Treasury Issue price: 100%
COVID-19 label. 34%
19%
Issue spread vs. 3y CDB -23bps
• Prior to issuance, AIIB marketed to more than 100
investors, including 87.6% of the allocated book. CB / OI Issue spread vs. 3y CGB +7 bps
31%
46*OFFICIAL USE ONLY
USEFUL LINKS
• AIIB Articles of Agreement
• Corporate Strategy
• Environmental and Social Framework
• Sustainable Development Bond Framework
• Sustainable Development Bonds Impact Report 2021
• 2021 Annual Report
• Financial Statements
• Treasury and Investor Marketing materials
47*OFFICIAL USE ONLY
DISCLAIMER
This presentation has been prepared by the Asian Infrastructure Investment Bank (the “Bank” or “AIIB”) for information purposes only and may not be reproduced or redistributed. Certain sections of
this presentation may contain forward-looking statements that are based on expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and
involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in such forward-looking statements. The
information contained in this presentation is subject to changes, modifications, additions, clarifications and/or substitutions. The Bank does not undertake any obligation to update or publicly release
any revisions to this presentation to reflect events, circumstances or changes in expectations after the date of this presentation. AIIB does not make any representation, warranty or assurance of any
kind, expressed or implied, nor does it assume any liability regarding the accuracy, completeness, timeliness or continued availability of any of the information contained in this presentation. This
presentation is provided to you on the understanding that (i) you have sufficient knowledge and experience to understand the contents thereof; and (ii) you are not relying on the Bank for advice or
recommendations of any kind (including without limitation advice relating to economic, legal, tax, regulatory and/or accounting risks and consequences). The Bank accepts no responsibility for any
consequences of the use of the information provided herein. Accordingly, the use of this presentation and its contents is the exclusive responsibility of the user at his/her own risk. Potential users
should conduct their own appropriate investigations and consult their legal, accounting and tax advisors in order to make an independent determination of the suitability and consequences of any use
of the information provided herein. Nothing in this presentation shall constitute nor shall be construed as a waiver of the immunities, privileges and exemptions granted to AIIB by its Articles of
Agreement, by the agreements into which AIIB has entered or may enter with its members, or by the legislation of those members. This presentation constitutes neither an offer to sell nor a
solicitation of an offer to buy any securities of AIIB, nor is it intended to serve as a basis for any kind of obligation, contractual or otherwise.
As at January 2023 unless otherwise stated.
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