Citi has served as dealer as well as issuing and paying agent on the issuance of the Asian Infrastructure Investment Bank (AIIB)’s first digitally native note (DNN).
The issuance was done on Euroclear’s Digital Financial Market Infrastructure (D-FMI) and is the first digital issuance in USD on the platform. It is also the first such issuance by an Asia-based issuer on the platform. The transaction was also supported by BMO Capital Markets as a dealer.
Richard Zogheb, head of global debt capital markets at Citi, said, “This digitally native note issuance reflects the growing adoption of digital assets in financial markets.”
The digitally native note, with a triple-A rating by Moody’s, Standard and Poor’s and Fitch Ratings, successfully raised US$300 million to support AIIB’s sustainable development bond programme.
The issuance was done via Euroclear’s Digital Securities Issuance (D-SI) service, which enables the issuance, distribution and settlement of fully digital international securities on distributed ledger technology (DLT). The note is listed on the Luxembourg Stock Exchange. Citi acted as a dealer as well as issuing and paying agent, BMO Capital Markets as a dealer, and Euroclear Bank as the issuer central securities depository. Clearing of the bonds is also possible on the Hong Kong Monetary Authority’s Central Moneymarkets Unit (CMU) and SIX Swiss Exchange (SIX).
AIIB Treasurer, Domenico Nardelli, said, “Not only is this the first USD digitally native note in Euroclear’s D-FMI, it is also the first time an issuer based in Asia has issued on the platform and the first time a DNN could be held in CMU or SIX.”
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