Advertisement

  • News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
  • Editorial Calendar 19-20
BW Businessworld

ADB Sells $4.5 Billion Five-Year Global Benchmark Bond

The five-year bond with a coupon rate of 0.625 per cent per annum payable semi-annually and a maturity date of April 29, 2025

Photo Credit :

1575885369_zvrKnC_ADB_logo_1543342036.jpg

The Asian Development Bank (ADB) returned to the US dollar bond market on Wednesday with the pricing of a 4.5 billion dollars five-year global benchmark bond issue proceeds of which will be part of ADB's ordinary capital resources.

"ADB recently tripled the size of its response to the COVID-19 pandemic that is affecting economies in Asia and the Pacific, and this transaction facilitates ADB's capacity to support our clients in addressing the urgent challenges they are currently facing," said ADB Treasurer Pierre Van Peteghem. "The order book we were able to garner for this five-year issue is ADB's largest-ever recorded and demonstrates the robust support from our investor base for ADB's efforts in safeguarding the economic, social, and development gains made in the region," he said in a statement.

The five-year bond with a coupon rate of 0.625 per cent per annum payable semi-annually and a maturity date of April 29, 2025, was priced at 99.818 per cent to yield 34.35 basis points over the 0.5 per cent US Treasury notes due March 2025.

The transaction was lead-managed by Bank of America, Citi, TD Securities and HSBC Bank Plc. A syndicate group was also formed consisting of Bank of Montreal, BNP Paribas, Deutsche Bank, SEB, and Nordea Bank.

With around 130 investors taking part, the issue achieved wide primary market distribution with 35 per cent of the bonds placed in Asia, 34 per cent in Europe, Middle East and Africa, and 31 per cent in the Americas.

By investor type, 56 per cent of the bonds went to central banks and official institutions, 26 per cent to banks and 18 per cent to fund managers and other types of investors.

ADB plans to raise around 28 billion dollars from the capital markets in 2020. 

(ANI)