The Asian Development Bank (ADB) returned to the US dollar bond market with the pricing of a five billion dollars five-year global bond proceeds of which will be part of ADB's ordinary capital resources.
"With investor interest in excess of 14 billion dollars, this represents ADB's largest order book for a global benchmark bond to date and is a hugely impressive outcome for ADB and the regional members it supports in Asia and the Pacific," said ADB Treasurer Pierre Van Peteghem.
"A coming together of factors contributed to the record five billion dollars final print in the post-Easter issuance window, including attractive swap spreads and pick-up versus US Treasuries, and relatively low issuance supply in March. We continue to be delighted with the consistent and deep support provided by investors across sectors which helped underpin the momentum for this trade."
The five-year bond with a coupon rate of 1 per cent per annum payable semi-annually and a maturity date of April 14, 2026 was priced at 99.942 per cent to yield 15.25 basis points over the 0.75 per cent US Treasury notes due March 2026.
The transaction was lead-managed by BMO Capital Markets, Credit Agricole CIB, Deutsche Bank, and Goldman Sachs International.
The issue achieved wide primary market distribution with 33 per cent of the bonds placed in Asia; 48 per cent in Europe, Middle East, and Africa; and 19 per cent in the Americas.
By investor type, 53 per cent of the bonds went to central banks and official institutions, 21 per cent to banks and 26 per cent to fund managers and other types of investors.
ADB plans to raise around 34 billion to 36 billion dollars from the capital markets in 2021.
( With inputs from ANI )
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