Asian Development Bank sells $3.5bln global bond

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The Asian Development Bank (ADB) priced a $3.5 billion 5-year global bond, proceeds of which will be part of ADB’s ordinary capital resources.

Established in 1966, ADB is a regional development bank owned by 68 members - 49 from the region. The Philippines-based bank remains committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific.

Priced on April 18, the bond, with a coupon rate of 3.75% per annum payable semi-annually and a maturity date of April 25, 2028, was priced at 99.725% to yield 16.50 basis points over the 3.625% US Treasury notes due March 2028.

"We appreciate the consistent support from investors across regions, providing ADB with additional resources as we support our developing member countries in managing climate change risks and the human impact of the pandemic," remarked its Treasurer Pierre Van Peteghem.

The transaction was lead-managed by BMO Capital Markets, BNP Paribas, BofA Securities, and HSBC. A syndicate group was also formed consisting of Rabobank, Standard Chartered Bank, and Wells Fargo Securities.

The issue achieved wide primary market distribution with 49% placed in Europe, Middle East, and Africa; 34% in the Americas; and 17% in Asia. By investor type, 48% went to central banks and official institutions, 40% to banks, and 12% to fund managers and other types of investors, said the statement.

ADB plans to raise about $28 billion–$30 billion from the capital markets in 2023, it added.