ADB sells $4 billion 3-year global benchmark bond
Jul 08, 2020
Manila [The Philippines], July 8 : The Asian Development Bank (ADB) returned to the US dollar bond market with the pricing of a four billion dollar three-year global bond, proceeds of which will be 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," said ADB Treasurer Pierre Van Peteghem.
"The transaction was well over-subscribed which enabled us to fine-tune pricing and still print one of our largest three-year USD issue sizes at four billion dollars. This gives us the resources to continue to provide much-needed assistance to the Asia and Pacific region, particularly during this pandemic," he said in a statement on Wednesday.
The three-year bond with a coupon rate of 0.25 per cent per annum payable semi-annually and a maturity date of July 14, 2023 was priced at 99.833 per cent to yield 12 basis points over the 0.25 per cent US Treasury notes due in 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 per cent of the bonds placed in Asia; 23 per cent in Europe, Middle East, and Africa; and 34 per cent in the Americas.
By investor type, 62 per cent of the bonds went to central banks and official institutions, 25 per cent to banks and 13 per cent to fund managers and other types of investors.
ADB plans to raise around 30 billion to 35 billion dollars from the capital markets in 2020.
