ADB prices 3-year $2.25 billion and $2 billion 10-year global benchmark bonds

“The dollar market has seen a very active start to the new year,” said ADB Treasurer Mr. Pierre Van Peteghem.

The Asian Development Bank (ADB) returned to the US dollar bond market on 15 January with the pricing of a 3-year global benchmark bond worth $2.25 billion and a 10-year global benchmark bond worth $2.0 billion, proceeds of which will be part of ADB's ordinary capital resources.

"The dollar market has seen a very active start to the new year," said ADB Treasurer Mr. Pierre Van Peteghem. "ADB is very pleased to make its first outing a strong one. The dual 3-year and 10-year tranche approach allowed ADB to respond to investor demand on both ends of the maturity spectrum is reflected in the final orderbook being over $6.5 billion. It is also noteworthy that this 10-year transaction opened the market for supranationals in that tenor and equaled ADB's largest 10-year transaction to date."  

The 3-year bond, with a coupon rate of 1.625% per annum payable semi-annually and a maturity date of 24 January 2023, was priced at 99.953% to yield 7.7 basis points over the 1.5% US Treasury notes due January 2023. The 10-year bond, with a coupon rate of 1.875% per annum payable semi-annually and a maturity date of 24 January 2030, was priced at 99.610% to yield 13.25 basis points over the 1.75% US Treasury notes due November 2029.

The transaction was lead-managed by Barclays, J.P. Morgan, Nomura, and RBC Capital Markets. A syndicate group was also formed consisting of ANZ, Commerzbank, ING, Credit Agricole, and Natwest Markets.

Both issues achieved wide primary market distribution with 37% of the 3-year bonds placed in Asia, 37% in the Americas, and 26% in Europe, the Middle East, and Africa. By investor type, 51% of the bonds went to central banks and official institutions, 35% to banks, and 14% to fund managers and other types of investors.

For the 10-year bonds, 55% were placed in Europe, the Middle East, and Africa; 31% in Asia; and 14% in the Americas. By investor type, 36% of the bonds went to central banks and official institutions, 44% to banks, 20% to fund managers, and other types of investors.

ADB plans to raise around $25 billion from the capital markets in 2020.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.