ADB sells $3.5bn 5-year global benchmark bond

By Shilpa Annie Joseph, Official Reporter
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Asian Development Bank
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The Asian Development Bank (ADB) has priced a $3.5 billion 5-year global bond, the proceeds of which will be part of ADB’s ordinary capital resources.

“We appreciate the consistent support from investors across regions, providing ADB with additional resources as we support our developing member countries in managing climate change risks and the human impact of the pandemic,” said ADB Treasurer Mr. Pierre Van Peteghem.

ADB plans to raise about $28 billion to $30 billion from the capital markets in 2023. The Asian Development Bank maintains 31 field offices around the world to promote social and economic development in Asia.

The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP, formerly the Economic Commission for Asia and the Far East or ECAFE) and non-regional developed countries.

According to the statement, “Priced on 18th April, the 5-year bond, with a coupon rate of 3.75 percent per annum payable semi-annually and a maturity date of 25 April 2028, was priced at 99.725 percent to yield 16.50 basis points over the 3.625 percent US Treasury notes due March 2028.”

The transaction was lead-managed by BMO Capital Markets, BNP Paribas, BofA Securities, and HSBC. A syndicate group was also formed consisting of Rabobank, Standard Chartered Bank, and Wells Fargo Securities.

“The issue achieved wide primary market distribution with 49 percent placed in Europe, Middle East, and Africa; 34 percent in the Americas; and 17 percent in Asia. By investor type, 48 percent went to central banks and official institutions, 40 percent to banks, and 12 percent to fund managers and other types of investors,” as per the statement.

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