ADB sells $4.5 billion 5-year global benchmark bond
Jan 28, 2021
Manila [The Philippines], January 28 : The Asian Development Bank (ADB) priced a USD 4.5 billion five-year global bond, proceeds of which will be part of ADB's ordinary capital resources.
"The dollar market has seen a very active start to the new year," said ADB Treasurer Pierre Van Peteghem.
"ADB is very pleased with the strong reception to our first outing in 2021 which allowed us to issue 4.5 billion dollars in the five-year maturity. This issuance will support the much-needed assistance that we provide to our borrowers through this global pandemic," he said in a statement.
The five-year bond with a coupon rate of 0.5 per cent per annum payable semi-annually and a maturity date of February 4, 2026, was priced at 99.759 per cent to yield 14.43 basis points over the 0.375 per cent US Treasury notes due January 2026.
The transaction was lead-managed by Bank of America Securities, Citi, HSBC, and Morgan Stanley. A syndicate group was also formed consisting of Daiwa Capital Markets, Danske Bank, Mizuho Securities, Natwest Markets and Swedbank.
The issue achieved wide primary market distribution with 38 per cent of the bonds placed in Asia; 32 per cent in Europe, Middle East, and Africa; and 30 per cent in the Americas.
By investor type, 52 per cent of the bonds went to central banks and official institutions, 33 per cent to banks and 15 per cent to fund managers and other types of investors.
ADB plans to raise USD 30 billion to USD 35 billion from the capital markets in 2021.
