Wed, 23 Oct 2019

ADB to raise $21 billion from capital markets this year

Lola Evans
12 Jul 2019, 04:12 GMT+10

MANILA, Philippines - The Asian Development Bank (ADB) on Wednesday returned to the U.S. dollar bond market with the pricing of a $3.25 billion 3-year global benchmark bond issue, proceeds of which will be part of ADB's ordinary capital resources.

"The breadth and depth of investor sponsorship enjoyed by ADB was demonstrated by the achievement of a sizeable order book. This high level of support which enabled ADB to tighten the price guidance against a volatile market backdrop highlights the high regard for ADB's credit and development mandate," ADB Treasurer Pierre Van Peteghem said Wednesday.

The 3-year bond, with a coupon rate of 1.875% per annum payable semi-annually and a maturity date of 19 July 2022, was priced at 99.898% to yield 7.75 basis points over the 1.75% U.S. Treasury notes due June 2022.

The transaction was lead-managed by Bank of America Merrill Lynch, BNP Paribas, Citi, and TD Securities. A syndicate group was also formed consisting of Commerzbank, DBS, Deutsche Bank, DNB Bank, and Nordea Bank.

With more than 75 investors taking part, the issue achieved wide primary market distribution with 59% of the bonds placed in Asia; 24% in the Americas; and 17% in Europe, the Middle East, and Africa. By investor type, 71% of the bonds went to central banks and official institutions, 21% to banks, and 8% to fund managers and other types of investors.

ADB says it plans to raise around $21 billion from the capital markets in 2019.

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