Capital Markets

ADB as a Borrower

ADB’s borrowing proceeds finance development projects and programs within its developing members with the aim of reducing poverty in the Asia and Pacific region.

ADB undertakes most of its borrowings through its Global Medium Term Note (GMTN) program (GMTN Prospectus) which was established in 2001. In February 2006, ADB established a 30-year AUD5 billion Medium-Term Note Program (AUD MTN Prospectus).  For its short-term funding needs, ADB operates a USD5 billion Eurocommercial Paper Program (ECP Prospectus).

ADB borrows in a broad range of currencies, instruments, markets and maturities, reflecting its diversification strategy.

At 31 August 2007, ADB had borrowed in 28 currencies. It had 339 outstanding borrowings with an aggregate principal amount of USD31.1 billion and an average maturity of about 5 years.

ADB uses financial derivatives to raise operationally needed currencies in a cost-efficient way, usually undertaking currency and interest rate swaps simultaneous to a bond issuance.

ADB’s estimated borrowing requirement over the next three years (from 31 December 2006) is approximately USD28 billion, including about USD6-8 billion for 2007.

Annual Borrowing Historical Overview