Manila March 10 2022: The Asian Development Bank (ADB) returned to the United States (US) dollar bond market with the pricing of a 2-year global benchmark bond worth $2.25 billion and a 7-year global benchmark bond worth $1.5 billion, proceeds of which will be part of ADB’s ordinary capital resources.
“We appreciate the support of our investors during these extremely turbulent times,” said ADB Treasurer Pierre Van Peteghem. “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 2-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 7-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.
The transaction was lead-managed by HSBC, Morgan Stanley, RBC Capital Markets, and TD Securities.
Both tranches achieved wide primary market distribution. On the 2-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. On the 7-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 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–$36 billion from the capital markets in 2022.
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.
