ADB sells $3.5bn 5-year global benchmark bond

The Asian Development Bank (ADB) on Tuesday priced a $3.5 billion 5-year global bond, proceeds of which will be part of ADB’s ordinary capital resources.

“We appreciate the consistent support from investors across regions, providing ADB with additional resources as we support our developing member countries in managing climate change risks and the human impact of the pandemic,” said ADB Treasurer Pierre Van Peteghem.

The 5-year bond, with a coupon rate of 3.75 percent per annum payable semi-annually and a maturity date of 25 April 2028, was priced at 99.725 percent to yield 16.50 basis points over the 3.625 percent US Treasury notes due March 2028.

The transaction was lead-managed by BMO Capital Markets, BNP Paribas, BofA Securities, and HSBC.

A syndicate group was also formed consisting of Rabobank, Standard Chartered Bank, and Wells Fargo Securities.

The issue achieved wide primary market distribution with 49 percent placed in Europe, Middle East, and Africa, 34 percent in the Americas; and 17 percent in Asia.

By investor type, 48 percent went to central banks and official institutions, 40 percent to banks, and 12 percent 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.