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ADB Launches New Taiwan Dollar Bond Issue

The Asian Development Bank (ADB) has launched today a New Taiwan (NT) dollar 2.6 billion public bond issue in Taipei,China's domestic capital market, the first of its kind by a foreign issuer. The lead managers of the issue are Chiao Tung Bank and Chinatrust Commercial Bank with an additional 8 domestic securities companies and investment banks included in the syndicate.

The 7-year fixed rate bonds are priced flat to the current interpolated government yield curve to yield 6.28 per cent semi-annually. The issue price is par and the coupon rate is 6.28 per cent per annum, payable semi-annually. Syndication will follow the fixed price re-offer format with the bonds free to trade tomorrow. Application will be made to the Taiwan Stock Exchange Corporation for listing of the bonds. The bond issue has been swapped into a US dollar liability, the proceeds of which will be included in the ordinary capital resources of ADB and used in its ordinary operations.

This pioneering transaction aims to have a developmental impact on Taipei,China's domestic bond and currency swap markets by establishing, among other things, a framework and a liquid benchmark to be utilized by domestic and offshore issuers in the NT dollar fixed rate bond sector.

The ADB was established in 1966 to promote economic growth in the Asia-Pacific region.

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