In Short – The Asian Development Bank (ADB) successfully issued a $3.5 billion 2-year global benchmark bond. This significant issuance supports ADB’s mission to promote social and economic development in Asia. The bond attracted diverse investor participation, reflecting confidence in ADB’s creditworthiness and the region’s growth prospects. Proceeds will fund projects aimed at sustainable development and poverty reduction.
In Details – MANILA, PHILIPPINES : The Asian Development Bank (ADB) yesterday priced a 2-year global benchmark United States (US) dollar bond worth $3.5 billion, proceeds of which will be part of ADB’s ordinary capital resources. “We are grateful for the consistently robust support from our investor community that resulted in an orderbook of over $9 billion and enabled the issuance of a $3.5 billion global benchmark bond with 2-year maturity,” said ADB Treasurer Pierre Van Peteghem. “This will help support ADB’s commitment to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific.”
The 2-year bond, with a coupon rate of 4.875% per annum payable semi-annually and a maturity date of 21 May 2026, was priced at 99.904% to yield 9.9 basis points over the 4.875% US Treasury notes due April 2026. The transaction was lead-managed by Credit Agricole CIB, Deutsche Bank, J.P. Morgan, and Nomura. The issue achieved wide primary market distribution, with 51% placed in the Americas; 38% in Europe, Middle East, and Africa; and 11% in Asia. By investor type, 66% went to central banks and official institutions, 19% to banks, and 15% to fund managers and other types of investors.
ADB plans to raise about $30 billion–$34 billion from the capital markets in 2024. ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
