The Asian Infrastructure Investment Bank has issued its first $300 million digital bond

The Asian Infrastructure Investment Bank (AIIB) has successfully issued its first digital bond, raising $300 million. The bond is rated AAA, with an annual interest rate of 4%, and will mature in January 2027. This issuance was assisted by Citigroup and BMO Capital Markets, marking the first time an Asian institution has issued a digital bond on Euroclear's distributed ledger platform. Notably, this is also the first dollar-denominated digital bond issued on the platform. Citigroup will play a key role in the settlement of payments between investors and issuers during the bond issuance. The bank will also serve as issuing and payment agent. This digital bond issue marks a significant step forward for Blockchain technology in finance. Although digital bonds are still a small part of the fixed income market, they are attracting increasing attention with institutions such as World Bank and European Investment Bank participating.