AIIB Issues First Digital Bond On Euroclear Platform

According to Bloomberg, the Asian Infrastructure Investment Bank (AIIB) has issued a digital bond on Euroclear’s distributed ledger platform, marking a significant milestone as the first Asia-based institution to do so. The AAA-rated note offers a 4% coupon and is set to mature in January 2027. This digital bond sale is also the platform’s first issuance in US dollars. Citi will play a crucial role in distributing the bond and settling payments between the issuer and investors. Additionally, Citi and BMO are acting as dealers for the transaction, with Citi also serving as the issuing and paying agent. Digital bonds represent a small but growing segment of the fixed-income market, attracting increasing interest from various institutions.