ADB sells $3.25 bn 5-Year Global Benchmark Bonds

ISLAMABAD, Mar 14 (APP):The Asian Development Bank (ADB) returned to the US dollar bond market with the pricing of a $3.25 billion 5-year global benchmark bond issue, proceeds of which will be part of ADB’s ordinary capital resources.
“We are very pleased with the strong reception to our second benchmark offering in 2018. We are happy to accommodate ongoing demand for ADB paper with this new 5-year issue following the solid performance of our dual tranche outing in January,” a statement quoted ADB Treasurer Pierre Van Peteghem as saying on Wednesday.
The 5-year bond, with a coupon rate of 2.75 percent per annum payable semi-annually and a maturity date of 17 March 2023, was priced at 2.871 percent to yield 25 basis points over the 2.625 percent US Treasury notes due 28 February 2023.
The transaction was lead-managed by Bank of America Merrill Lynch, HSBC, Morgan Stanley, and RBC Capital Markets. A syndicate group was also formed consisting of Credit Agricole, Daiwa, DBS Bank, SMBC Nikko, and Wells Fargo.
The issue achieved wide primary market distribution with 39 percent of the bonds placed in Europe, the Middle East, and Africa, 34 percent in Asia, and 27 percent in the Americas.
By investor type, 55 percent of the bonds went to central banks and official institutions, 27 percent to banks, and 18 percent to fund managers and other types of investors.
ADB plans to raise around $25 billion from the capital markets in 2018.