Latham Advises on Asian Infrastructure Investment Bank’s US$2 Billion Bond Offering – Latham & Watkins LLP

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Sep 11, 2025 - 19:00
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Latham Advises on Asian Infrastructure Investment Bank’s US$2 Billion Bond Offering – Latham & Watkins LLP

 

Report on Asian Infrastructure Investment Bank’s US$2 Billion Bond Issuance for Sustainable Development

Transaction Overview

The Asian Infrastructure Investment Bank (AIIB) has successfully issued US$2 billion in notes, the proceeds of which are designated for financing projects that directly support the United Nations Sustainable Development Goals (SDGs). This issuance is a key component of AIIB’s strategy to mobilize capital for sustainable infrastructure.

  • Issuer: Asian Infrastructure Investment Bank (AIIB)
  • Issuance Amount: US$2 billion
  • Coupon Rate: 3.625%
  • Maturity Date: 2028

Legal Advisory and Execution

Latham & Watkins provided legal counsel to the underwriters for this transaction, continuing its advisory role on previous AIIB offerings in January and May 2025. The successful execution of this bond issuance highlights the collaborative effort required to finance global development objectives.

Team Composition

  • Lead Partner: Ryan Benedict (London Corporate)
  • Associates: Valera Bamgbala, Sonali Ladha

Strategic Alignment with Sustainable Development Goals (SDGs)

The capital raised from this bond issuance is instrumental in advancing several key SDGs by funding infrastructure projects with sustainability at their core. The primary goals supported include:

  1. SDG 9: Industry, Innovation and Infrastructure: The core mandate of the financing is to develop resilient, sustainable, and inclusive infrastructure, promoting economic growth and innovation across Asia.
  2. SDG 7: Affordable and Clean Energy: A significant portion of the proceeds is expected to be allocated to renewable energy projects, facilitating the transition to clean and affordable energy sources in member countries.
  3. SDG 11: Sustainable Cities and Communities: Funds will be directed towards projects that improve urban infrastructure, including sustainable transport, water and sanitation systems, and green public spaces, making cities more inclusive and resilient.
  4. SDG 13: Climate Action: The issuance supports AIIB’s commitment to climate finance by investing in projects that enhance climate resilience and contribute to the mitigation of greenhouse gas emissions.
  5. SDG 17: Partnerships for the Goals: This transaction exemplifies a powerful partnership between a multilateral development bank, private sector financial institutions, and legal experts, collectively mobilizing resources to achieve the SDGs.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

  • SDG 9: Industry, Innovation and Infrastructure: The article discusses a US$2 billion bond issuance by the Asian Infrastructure Investment Bank (AIIB). The core mission of the AIIB is to finance infrastructure projects. Therefore, the funds raised are directly intended to support the development of industry, innovation, and infrastructure in Asia.
  • SDG 17: Partnerships for the Goals: The article describes a financial transaction involving multiple entities: the AIIB (a multilateral development bank), underwriters, and a law firm (Latham & Watkins) advising them. This collaboration to mobilize financial resources (US$2 billion) for development is a clear example of a partnership aimed at achieving sustainable development goals.

2. What specific targets under those SDGs can be identified based on the article’s content?

  • Target 9.1: “Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.” The capital raised by the AIIB through this bond issuance is the primary means by which the bank finances projects that align with this target.
  • Target 17.3: “Mobilize additional financial resources for developing countries from multiple sources.” The issuance of US$2 billion in notes (bonds) on the international market is a direct action of mobilizing private sector capital (from investors) to fund development projects in AIIB’s member countries, many of which are developing nations.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

  • Implied Indicator for Target 17.3: The article explicitly states the amount of capital raised: “US$2 billion 3.625% notes due 2028.” This figure serves as a direct measure for Indicator 17.3.1, which tracks “Additional financial resources mobilized for developing countries from multiple sources (in United States dollars).” The US$2 billion represents a quantifiable amount of financial resources mobilized through this partnership.

4. Summary Table of SDGs, Targets, and Indicators

SDGs Targets Indicators
SDG 9: Industry, Innovation and Infrastructure Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure…to support economic development and human well-being. While no specific indicator is mentioned, the funds raised (US$2 billion) are a financial input towards achieving this target.
SDG 17: Partnerships for the Goals Target 17.3: Mobilize additional financial resources for developing countries from multiple sources. Implied Indicator 17.3.1: The article provides a specific value for this indicator by stating the amount of mobilized resources: “US$2 billion”.

Source: lw.com