ADB's borrowing proceeds finance Ordinary Capital Resources (OCR) operations, including development projects and programs within its developing members with the aim of reducing poverty in Asia and the Pacific region.
ADB's annual borrowing program is carefully planned to meet the requirements of its lending operations, debt redemptions, and liquidity policy within the context of a dynamic market environment.
- ADB seeks to diversify its borrowings in a broad range of currencies, instruments, markets and maturities.
- ADB undertakes most of its borrowings through its Global Medium Term Note (GMTN) program (GMTN Prospectus). The program’s flexibility allows ADB to immediately address funding needs and respond to specific investor requirements through its private placement transactions.
- As part of its developmental mandate, ADB contributes to the development of regional markets through local currency bond issuances under its Asian Currency Note Program (ACNP Offering Circular) and MYR Medium-Term Note Program.
- For its short-term funding needs, ADB operates an $8 billion Euro-commercial Paper Program (ECP Prospectus). The ECP program provides flexible, short term (7 to 365 days) financing to bridge temporary cash flow requirements that may arise when market conditions are not favorable.
- ADB uses financial derivatives to raise operationally needed currencies in a cost-efficient way, usually undertaking currency and interest rate swaps simultaneously with an issue of bonds.
As of 31 December 2015, ADB had borrowed in 32 currencies. It had 283 outstanding borrowings with an aggregate principal amount of $66.1 billion and an average maturity of 3 years.
ADB's estimated borrowing requirement over the next three years is in the range of $18 billion to $22 billion per annum.
Annual borrowing historical overview
|Volume (US$ Billion Equivalent)||2||4||5||9||9||10||15||14||13||12||14||19|
|Average Maturity* (Years)||8||4||6||5||3||4||5||5||5||4||4||5|
|Range of Maturity (Years)||3-30||2-30||2-30||1-30||2-35||2-30||2-30||1-30||1-30||1-30||1-11||1-10|
* Based on first call date.