The Asian Development Bank (ADB) has returned to the US dollar bond market with the pricing of a two-year global benchmark bond worth $2.25 billion and a seven-year global benchmark bond worth $1.5 billion.
The proceeds of which will be part of ADB’s ordinary capital resources.
The two-year bond, with a coupon rate of 1.625% per annum payable semi-annually and a maturity date of 15 March 2024, was priced at 99.867% to yield 11.2 basis points over the 1.50% US Treasury notes due February 2024.
The seven-year bond, with a coupon rate of 1.875% per annum payable semi-annually and a maturity date of 15 March 2029, was priced at 99.44% to yield 13.9 basis points over the 1.875% US Treasury notes due February 2029.
“We appreciate the support of our investors during these extremely turbulent times,” ADB treasurer Pierre Van Peteghem said.
“Through this transaction, we raised over $3.75 billion across the two maturities which provide us with the resources to assist our developing member countries in Asia and the Pacific.”
The transaction was lead-managed by HSBC, Morgan Stanley, RBC Capital Markets, and TD Securities. Both tranches achieved wide primary market distribution, ADB said.
On the two-year issue, 18% of the bonds were placed in Asia; 39% in Europe, Middle East, and Africa; and 43% in the Americas.
By investor type, 64% of the bonds went to central banks and official institutions, 31% to banks, and 5% to fund managers and other types of investors, the Manila-based lender said.
On the seven-year issue, 55% of the bonds were placed in Asia; 23% in Europe, Middle East, and Africa; and 22% in the Americas.
By investor type, 64% of the seven-year bonds went to central banks and official institutions, 16% to banks, and 20% to fund managers and other types of investors.
ADB plans to raise $34 billion to $36 billion from the capital markets in 2022.
Officials from some of the world's biggest cities are in Washington to lobby for better…
China announces "anti-dumping penalties" on imports of a US chemical and orders Apple to cut…
Chinese companies invested in included the Aviation Industry Corp of China, a defence conglomerate that…
US tech giant said Beijing ordered it to cut the messaging apps because of national…
Israel’s missile attack on Iran sent investors heading for safe-haven currencies, gold and crude oil
Multi-year satellite study finds 45% of big Chinese cities are subsiding over 3mm a year,…