MANILA – The Asian Development Bank (ADB) returned to the US dollar bond market with the pricing of a USD4-billion three-year global bond, the proceeds of which will become part of ADB’s ordinary capital resources.
“We are very appreciative of the consistently solid investor support that ADB receives in its US dollar bond outings. This trade is no exception. The transaction was well oversubscribed, which enabled us to finetune pricing and still print one of our largest 3-year USD issue sizes at USD4 billion. This gives us the resources to continue to provide much-needed assistance to the Asia and Pacific region, particularly during this pandemic,” ADB Treasurer Pierre Van Peteghem said in a statement Wednesday.
The three-year bond, with a coupon rate of 0.25 percent per annum payable semi-annually and a maturity date of 14 July 2023, was priced at 99.833 percent to yield 12 basis points over the 0.25 percent US Treasury notes due June 2023.
The transaction was lead-managed by Bank of Montreal, Deutsche Bank, Goldman Sachs, and Morgan Stanley.
A syndicate group was also formed consisting of ANZ, Credit Agricole CIB, Daiwa, ING, Mizuho, and Natwest.
The issue achieved wide primary market distribution with 43 percent of the bonds placed in Asia; 23 percent in Europe, Middle East, and Africa; and 34 percent in the Americas.
By investor type, 62 percent of the bonds went to central banks and official institutions, 25 percent to banks, and 13 percent to fund managers and other types of investors.
ADB plans to raise around USD30 billion to USD35 billion from the capital markets in 2020. (PR)
