The Asian Infrastructure Investment Bank (AIIB) on Wednesday announced the release of 1.5 billion yuan ($224.45 million) of sustainable development Panda bonds in China's interbank bond market.

This marks the first sustainable development bond issued by an international development institution within the country, since the National Association of Financial Market Institutional Investors launched sustainable development bonds in 2021, the AIIB said in a statement on Wednesday.

The latest Panda bonds, due to mature in three years with a coupon rate of 2.4 percent, are in accordance with the AIIB's Sustainable Development Bond Framework and intended to finance the construction of sustainable development infrastructure.

Panda bonds refer to the sale of yuan-denominated bonds by overseas issuers in China.

The fresh batch of bonds is envisioned to provide both domestic and overseas investors with premium yuan-denominated assets and add fuel to the globalized push for China's capital market, read the statement.

The AIIB launched its inaugural Panda bonds in 2020, raising 3 billion yuan ($449 million), making it the first Triple-A internationally rated issuer to have sold Panda bonds in the country since the 2018 rollout of new Panda bond guidelines governing international issuers.

The 2020 insurance that aimed at the COVID-19 was also planned to mature in three years with a coupon rate of 2.4 percent.

The newest Panda bond was issued at a relatively low rate despite tight liquidly and rising fundraising costs in the global markets. This reflects AIIB's Triple-A international credit rating, sound financial situation and high-standard operation and management, read the statement.