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:
- Foreign exchange linked: Dual Currency Note, Reverse Dual Currency Note, Power Reverse Dual Currency Note, Chooser Power Reverse Dual Currency Note, Digital Coupon Note, Target Redemption Note
- Interest Rate Linked: Inverse Rate Floater, CMS-Indexed Note, Callable Floating Rate Note
- Others: Fixed Rate Note, Zero Coupon Callable Note, Uridashi (Straight or Deep Discount), Samurai (structured)
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.
Clean Energy Bonds
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. ADB Clean Energy Bonds
Investing in gender equality makes economic sense. Globally, it is estimated that $12 trillion could be added to the gross domestic product by 2025 by advancing gender equality. Read the ADB Gender Investor Brief.
This program enables ADB to support its developing members seeking to mitigate greenhouse gas emissions and adapt to the consequences of climate change, while delivering environmentally sustainable growth to help reduce poverty and improve the quality of life of their people. More on green bonds
The proceeds of health bonds are used to finance ADB projects tackling health challenges in Asia and the Pacific. Health bonds highlight ADB's aim to more than double its health sector investments by 2020 as part of its commitment to universal health coverage. ADB Health Investor Brief
These bond issues support projects under the Water Financing Program and highlight ADB’s efforts to address Asia’s water sanitation needs. More on water bonds