AIIB launches EUR 1 billion 7-year bond with stabilization plan

Published 07/05/2025, 08:46
AIIB launches EUR 1 billion 7-year bond with stabilization plan

LONDON - Deutsche Bank AG (ETR:DBKGn), acting as the Stabilisation Coordinator, announced Wednesday that the Asian Infrastructure Investment Bank (AIIB) is set to issue a EUR 1 billion 7-year Sustainable Development Bond (SDB). The offering, which is not to be distributed in the United States or to any U.S. persons, involves a pre-stabilisation period that commenced today, aiming to support the market price of the securities post-launch.

The bond, described as the AIIB EUR benchmark 7-year SDB, has an initial price thought to be in the area of mid-swaps plus 40 basis points, though the final issue price is yet to be confirmed. The International Securities Identification Number (ISIN) for the bond will be determined in due course.

Stabilisation activities, which may include over-allotment to manage the market price, are expected to be carried out by Deutsche Bank, J.P. Morgan, NatWest, and Societe Generale (OTC:SCGLY). These efforts are meant to prevent price decline in the period following the security’s issuance and are compliant with EU and UK regulations.

The stabilisation period began today and is anticipated to end no later than June 25, 2025. The Stabilisation Manager(s) have the discretion to over-allot or execute transactions to maintain the market price above levels that might otherwise prevail in the market. However, there is no certainty that stabilisation will occur, and if initiated, it may be stopped at any time.

The announcement clarifies that the securities offering and this notice are directed at persons outside the United Kingdom (TADAWUL:4280) or those within the UK having professional experience in investment matters or who are high net worth entities. It is also directed at qualified investors within the European Economic Area and the UK as defined by respective Prospectus Regulations.

The securities have not been and will not be registered under the United States Securities Act of 1933, indicating that they cannot be offered or sold within the United States without registration or an applicable exemption from registration requirements. Consequently, there will be no public offering of the securities in the United States.

The information provided is based on a press release statement and is solely for informational purposes, not constituting an offer to underwrite, subscribe for, or otherwise acquire or dispose of any securities of the Issuer in any jurisdiction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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