ADB Prices US$1 Billion 3-Year Global Bond Issue

MANILA, PHILIPPINES - The Asian Development Bank returned to the U.S. dollar bond market yesterday with the pricing of a $1 billion three-year global benchmark bond issue, proceeds of which will be part of the bank’s ordinary capital resources and used in its non-concessional operations.

The bonds, with a coupon rate of 3.0% per annum payable semiannually and a maturity date of 15 February 2011, were priced at 99.894% to yield 51.75 basis points over the 3.25% U.S. Treasury note due December 2009.

The transaction was lead-managed by Daiwa, Morgan Stanley and RBC Capital Markets. A syndicate group was also formed consisting of BNP Paribas, Citigroup, Deutsche Bank, Dresdner, HSBC, JP Morgan, Merrill Lynch, Mitsubishi UFJ Securities, Nomura and UBS as co-lead managers.

“We are very satisfied with the transaction and the robust demand from investors, which resulted in a book that exceeded $1.3 billion,” said ADB Treasurer Mikio Kashiwagi. "The interest from central banks is the highest we have seen, reflecting the high quality of the order book."

About 40% of the bonds were placed in Asia, 33% in North America, and 27% in Europe and Middle East. By investor type, around 80% were bought by central banks, 12% by fund managers, 6% by pension funds and 2% by banks.

ADB plans to raise around $8 billion in 2008.

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