ADB sells $2bn ten-year global benchmark bond

ISLAMABAD: The Asian Development Bank (ADB) priced a $2 billion 10-year global bond, proceeds of which will be part of ADB’s ordinary capital resources.
“We appreciate the strong support of our investors for this new 10-year global bond issue,” said ADB Treasurer Pierre Van Peteghem in a statement on Thursday.
“This is our second successful outing in the US dollar market this year. The constructive result provides us with more resources to support our developing members in Asia and the Pacific, especially those most affected by the pandemic,” said Peteghem.
The 10-year bond, with a coupon rate of 1.5 percent per annum payable semi-annually and a maturity date of 4 March 2031, was priced at 99.088 percent to yield 18.35 basis points over the 1.125 percent US Treasury notes due February 2031.
The transaction was lead-managed by JP Morgan, Nomura, RBC, and TD Securities. A syndicate group was also formed consisting of ANZ, Credit Agricole CIB, ING, Natixis, and Scotiabank.
The issue achieved wide primary market distribution with 27% of the bonds placed in Asia; 48% in Europe, Middle East, and Africa; and 25% in the Americas. By investor type, 56 percent of the bonds went to central banks and official institutions, 30 percent to banks, and 14 percent to fund managers and other types of investors.
ADB plans to raise around $30 billion-$35 billion from the capital markets in 2021. – TLTP

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