ADB Sells $4 Billion 3-Year Global Benchmark Bond

The Asian Development Bank (ADB) returned to the US dollar bond market with the pricing of a $4 billion 3-year global bond, proceeds of which will be part of ADB’s ordinary capital resources.

“We are very appreciative of the consistently solid investor support that ADB receives in its US dollar bond outings. This trade is no exception. The transaction was well oversubscribed, which enabled us to finetune pricing and still print one of our largest 3-year USD issue sizes at $4 billion. This gives us the resources to continue to provide much needed assistance to the Asia and Pacific region, particularly during this pandemic,”  said ADB Treasurer Pierre Van Peteghem.

The 3-year bond, with a coupon rate of 0.25% per annum payable semi-annually and a maturity date of 14 July 2023, was priced at 99.833% to yield 12 basis points over the 0.25% US Treasury notes due June 2023.

The transaction was lead-managed by Bank of Montreal, Deutsche Bank, Goldman Sachs, and Morgan Stanley. A syndicate group was also formed consisting of ANZ, Credit Agricole CIB, Daiwa, ING, Mizuho, and Natwest.

The issue achieved wide primary market distribution with 43% of the bonds placed in Asia; 23% in Europe, Middle East, and Africa; and 34% in the Americas. By investor type, 62% of the bonds went to central banks and official institutions, 25% to banks, and 13% to fund managers and other types of investors.

ADB plans to raise around $30 billion to $35 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.

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