MANILA, PHILIPPINES (21 April 2022) — The Asian Development Bank (ADB) returned to the United States (US) dollar bond market with the pricing of a 3-year global benchmark bond worth $3 billion and a 10-year global benchmark bond worth $1 billion, proceeds of which will be part of ADB’s ordinary capital resources.
“We appreciate the confidence and consistent support of our investors as we launch our third global benchmark outing for the year amid challenging market conditions,” said ADB Treasurer Pierre Van Peteghem. “Through this transaction, we raised $4 billion across two maturities, which provide us with the resources to continue to assist our developing member countries in Asia and the Pacific.”
The 3-year bond, with a coupon rate of 2.875% per annum payable semi-annually and a maturity date of 6 May 2025, was priced at 99.882% to yield 12.625 basis points over the 2.625% US Treasury notes due April 2025.
The 10-year bond, with a coupon rate of 3.125% per annum payable semi-annually and a maturity date of 27 April 2032, was priced at 99.966% to yield 26.95 basis points over the 1.875% US Treasury notes due February 2032.
The transaction was lead-managed by BofA Securities, Goldman Sachs International, JP Morgan, and Nomura. A syndicate group was also formed consisting of CIBC Capital Markets, Daiwa, DBS, Standard Chartered, and Scotiabank.
Both tranches achieved wide primary market distribution. On the 3-year issue, 11% of the bonds were placed in Asia; 41% in Europe, Middle East, and Africa; and 48% in the Americas. By investor type, 36% of the bonds went to central banks and official institutions, 41% to banks, and 23% to fund managers and other types of investors. On the 10-year issue, 46% of the bonds were placed in Asia; 38% in Europe, Middle East, and Africa; and 16% in the Americas. By investor type, 45% of the bonds went to central banks and official institutions, 34% to banks, and 22% 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.