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 through private placement transactions.
These private placements can be structured to meet the specific requirements of investors in terms of maturity and coupon. They can be targeted to retail as well as institutional investors, bear fixed or foreign exchange/interest rate-linked coupon, and can include caps, calls, and other features as required by investors. Private placement products issued by ADB have included some of the following features:
Among more recent developments, ADB launched its first thematic bonds in 2010 in response to a growing demand among its investor base to highlight certain key initiatives of ADB.
Water Bonds: ADB has issued Water Bonds almost $1.3 billion equivalent. These bond issues support projects under the Water Financing Program and highlight ADB’s efforts to address Asia’s water sanitation needs.
Clean Energy Bonds: Following the success of its Water Bond offering, ADB launched its second thematic bond issue during the third quarter of 2010. As of 30 April 2014, ADB has issued Clean Energy Bonds over $821 million equivalent. These bonds highlight ADB’s efforts in renewable energy and energy efficiency projects in the region, while meeting investor demand for specific topics of interest.