ADB Sells $2 Billion 10-Year Global Benchmark Bond
MANILA, PHILIPPINES (25 February 2021) — The Asian Development Bank (ADB) priced a $2 billion 10-year global bond, proceeds of which will be part of ADB’s ordinary capital resources.
“We appreciate the strong support of our investors for this new 10-year global bond issue,” said ADB Treasurer Pierre Van Peteghem. “This is our second successful outing in the US dollar market this year. The constructive result provides us with more resources to support our developing members in Asia and the Pacific, especially those most affected by the pandemic.”
The 10-year bond, with a coupon rate of 1.5% per annum payable semi-annually and a maturity date of 4 March 2031, was priced at 99.088% to yield 18.35 basis points over the 1.125% US Treasury notes due February 2031.
The transaction was lead-managed by JP Morgan, Nomura, RBC, and TD Securities. A syndicate group was also formed consisting of ANZ, Credit Agricole CIB, ING, Natixis, and Scotiabank.
The issue achieved wide primary market distribution with 27% of the bonds placed in Asia; 48% in Europe, Middle East, and Africa; and 25% in the Americas. By investor type, 56% of the bonds went to central banks and official institutions, 30% to banks, and 14% to fund managers and other types of investors.
ADB plans to raise around $30 billion–$35 billion from the capital markets in 2021.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.