MANILA, PHILIPPINES : The Asian Development Bank (ADB) yesterday priced a $4 billion 5-year global bond, proceeds of which will be part of ADB’s ordinary capital resources.
The 5-year bond, with a coupon rate of 4.50% per annum payable semi-annually and a maturity date of 25 August 2028, was priced at 99.961% to yield 14.60 basis points over the 4.125% United States Treasury notes due July 2028.
“We appreciate the strong and consistent support of our investors as seen from our most recent benchmark issuance which provides us with additional resources to support our members as we work together to achieve a prosperous, inclusive, resilient, and sustainable Asia Pacific,” said ADB Treasurer Pierre Van Peteghem.
The transaction was lead-managed by Barclays Bank, BofA Securities, Citigroup Global Markets, and JP Morgan Securities. A syndicate group was also formed consisting of Canadian Imperial Bank of Commerce, ING Bank, NatWest Markets, The Bank of Nova Scotia, and Wells Fargo Securities.
The issue achieved wide primary market distribution with 53% of the bonds placed in Europe, Middle East, and Africa; 29% in the Americas; and 18% in Asia. By investor type, 42% of the bonds went to central banks and official institutions, 36% to banks, and 22% to fund managers and other types of investors.
ADB plans to raise about $28 billion–$30 billion from the capital markets in 2023.
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.
