MANILA, PHILIPPINES (17 August 2022) — The Asian Development Bank (ADB) returned to the United States (US) dollar bond market with the pricing of a $4.5 billion 5-year global benchmark bond, proceeds of which will be part of ADB’s ordinary capital resources.
“We are delighted with the strong support provided by investors, which allowed us to tighten price guidance by 3 basis points during the book-build process while printing one of our largest issue sizes at $4.5 billion,” said ADB Treasurer Pierre Van Peteghem. “A constructive market backdrop, attractive pick-up to US Treasuries, and lack of primary supply helped underpin the success of this outing.”
The 5-year bond, with a coupon rate of 3.125% per annum payable semi-annually and a maturity date of 20 August 2027, was priced at 99.982% to yield 16.7 basis points over the 2.75% US Treasury notes due July 2027.
The transaction was lead-managed by BMO Capital Markets, BNP Paribas, Citi, and TD Securities. A syndicate group was also formed consisting of CIBC Capital Markets, DBS, ING, and Scotiabank.
The issue achieved wide primary market distribution, with 25% of the bonds placed in Asia; 47% in Europe, Middle East, and Africa; and 28% in the Americas. By investor type, 53% of the bonds went to central banks and official institutions, 36% to banks, and 11% to fund managers and other types of investors.
ADB plans to raise $34 billion–$36 billion from the capital markets in 2022.
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.