Home ›› 01 Oct 2020 ›› World Biz
The Asian Development Bank (ADB) returned to the US dollar bond market with the pricing of a 3-year global benchmark bond worth 3 billion dollars and a 10-year global benchmark bond worth $1 billion, proceeds of which will be part of ADB’s ordinary capital resources.
“We are pleased with the consistently reliable and strong support of our investors as we launched our last US dollar benchmark outing for 2020 with a dual-tranche 3- and 10-year transaction,” said ADB Treasurer Pierre Van Peteghem.
“This has been a record-breaking year for us with over 24 billion dollars raised in the global benchmark market through six outings. This strong support gives us the resources to provide much-needed assistance to Asia and the Pacific, especially during these challenging times,” added Peteghem.
An ADB press release said the 3-year bond, with a coupon rate of 0.25 per cent per annum payable semi-annually and a maturity date of 6 October 2023, was priced at 99.893 per cent to yield 14 basis points over the 0.125 per cent US Treasury notes due September 2023.
The 10-year bond, with a coupon rate of 0.75 per cent per annum payable semi-annually and a maturity date of 8 October 2030, was priced at 98.852 per cent to yield 22.66 basis points over the 0.625 per cent US Treasury notes due August 2030.
The transaction was lead-managed by BNP Paribas, Nomura, RBC Capital Markets, and TD Securities. A syndicate group was also formed consisting of ANZ, ING, and Standard Chartered.
The release said both tranches achieved wide primary market distribution. On the 3-year bond, 36 per cent of the bonds were placed in Asia; 29 per cent in Europe, the Middle East, and Africa; and 35 per cent in the Americas.
By investor type, 55 per cent of the bonds went to central banks and official institutions, 25 per cent to banks, and 20 per cent to fund managers and other types of investors.
On the 10-year bond, 46 per cent of the bonds were placed in Asia; 22 per cent in Europe, the Middle East, and Africa; and 32 per cent in the Americas.
By investor type, 54 per cent of the bonds went to central banks and official institutions, 18 per cent to banks, and 28 per cent to fund managers and other types of investors.
ADB plans to raise around 30 billion to 35 billion dollars from the capital markets in 2020.
(Source: BSS)
