AIIB could offer dollar bond

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 yesterday, citing the bank’s treasurer Soren Elbech. The earliest issuance window will be “toward the end of the first half of 2018,” to allow time for certain procedures, including board approval of AIIB’s 2017 financial statements as well as borrowing and swap documentation. Elbech said the minimum size of the bond would be $1 billion, but as demand for the first bond issue from AIIB may be strong, “we anticipate having to issue a larger size”. Regarding the bond’s maturity, Elbech said the choice would be between three and five years depending on investor demand. – Reuters