BEIJING -- The Asian Infrastructure Investment Bank (AIIB) has issued 1.5 billion yuan ($225.11 million) worth of panda bonds in China's interbank bond market.

They are the first sustainable development bonds that have been issued by an international institution in China. The National Association of Financial Market Institutional Investors approved launching sustainable development bonds in 2021.

The issuance has a maturity of three years with a coupon rate of 2.4 percent, which aims to raise funds to support the construction of sustainable development infrastructure.

The AIIB launched its first batch of panda bonds in 2020, raising 3 billion yuan.

Amid tight liquidity and rising financing costs in global markets, the issuance of panda bonds at a relatively low rate demonstrates recognition by market investors for the AIIB's AAA international credit rating, sound financial situation and high-standard operation and management, analysts said.

Panda bonds are yuan-denominated debts sold by overseas issuers in China.