The Asian Development Bank (ADB) has returned to the US dollar bond market and issued $3.25 billion worth of debt papers to boost its ordinary capital resources.
The Manila-based multilateral development bank said this is in line with its plan to raise $25 billion from the capital markets this year.
The five-year bond, with a coupon rate of 2.75 percent per annum payable semi-annually, will mature on March 17, 2023. It was priced at 2.871 percent to yield 25 basis points over the 2.625-percent US Treasury notes due on February 28, 2023.
“We are very pleased with the strong reception to our second benchmark offering in 2018. We are happy to accommodate ongoing demand for ADB paper with this new five-year issue following the solid performance of our dual tranche outing in January,” said ADB Treasurer Pierre Van Peteghem.
The transaction was lead-managed by Bank of America Merrill Lynch, HSBC, Morgan Stanley and RBC Capital Markets. A syndicate group was also formed consisting of Credit Agricole, Daiwa, DBS Bank, SMBC Nikko and Wells Fargo.
The issue achieved wide primary market distribution with 39 percent of the bonds placed in Europe, the Middle East, and Africa, 34 percent in Asia, and 27 percent in the Americas.
By investor type, 55 percent of the bonds went to central banks and official institutions, 27 percent to banks, and 18 percent to fund managers and other types of investors.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
Established in 1966, ADB has more than 50 years of development partnership in the region. It is owned by 67 countries, 48 from the region.