(Bloomberg) -- The Asian Infrastructure Investment Bank raised US$300 million in its first bond issuance underpinned by blockchain technology, aided by Citigroup Inc. and BMO Capital Markets.
The AAA-rated note offers a four per cent coupon and matures in January 2027, AIIB Treasurer Domenico Nardelli said in an interview, adding the AIIB will assess secondary market demand before deciding on further such sales next year.
The bank becomes the first Asia-based institution to issue a note on Euroclear’s distributed ledger platform, and the digital bond sale is the platform’s first in U.S. dollars, according to a statement. Citi will help distribute the bond while settling payments with the issuer and investors, said Andrew Mulley, Citi’s global product head of agency and trust for securities services.
Citi and BMO are dealers on the transaction. Citi is also the issuing and paying agent. Digital bonds are a small but growing part of fixed-income overall, with institutions such as the World Bank and European Investment Bank participating.
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