ADB issues 3 bln USD 5-year global benchmark bond

Source: Xinhua Published: 2020/8/26 13:42:49

The Asian Development Bank (ADB) Photo: VCG


 
The Asian Development Bank (ADB) returned to the US dollar bond market with the pricing of a 3-billion-US-dollar five-year global bond, proceeds of which will be part of ADB's ordinary capital resources, the Manila-based bank said on Wednesday.

"We looked at the post-summer issuance window and saw an opportunity to add a new five-year to our global benchmark curve," ADB Treasurer Pierre Van Peteghem said in a statement.

The ADB said the five-year bond, with a coupon rate of 0.375 percent per annum payable semi-annually and a maturity date of Sept. 3, 2025, was priced at 99.556 percent to yield 15.4 basis points over the 0.25 percent US Treasury notes due July 2025.

It said the transaction was lead-managed by Bank of America, Credit Agricole CIB, Citi, and J.P. Morgan. A syndicate group was also formed consisting of ANZ, BNP Paribas, DBS Bank Ltd., NATIXIS, and Rabobank, it added.

The ADB said the issue achieved wide primary market distribution with 41 percent of the bonds placed in Asia; 34 percent in Europe, Middle East, and Africa; and 25 percent in the Americas.

By investor type, the ADB said 52 percent of the bonds went to central banks and official institutions, 31 percent to banks, and 17 percent to fund managers and other types of investors.

The ADB said it plans to raise around 30 billion US dollars to 35 billion US dollars from the capital markets in 2020.

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