ADB Sells $4 Billion Dual Tranche 2- and 10-Year Global Benchmark Bonds

MANILA  — The Asian Development Bank (ADB) returned to the United States (US) dollar bond market with the pricing of a 2-year bond issue worth $2.75 billion and a 10-year global bond issue worth $1.25 billion, proceeds of which will be part of ADB’s ordinary capital resources.

The dual tranche transaction marks ADB’s fifth outing in the US dollar market this year following the $4.5 billion 5-year global benchmark bond offering in mid-August.

“We are pleased with the strong and consistent support from our investors across regions in our dual tranche outing,” said ADB Deputy Treasurer Sukhumarn Phanachet. “With an orderbook of over $6.8 billion, we raised $4 billion across the two maturities which once again provides us with additional resources to assist our developing member countries in Asia and the Pacific.”

The 2-year bond, with a coupon rate of 4.125% per annum payable semi-annually and a maturity date of 27 September 2024, was priced at 99.956% to yield 19.9 basis points over the 3.25% US Treasury notes due 31 August 2024.

The 10-year bond, with a coupon rate of 3.875% per annum payable semi-annually and a maturity date of 9 June 2028, was priced at 99.910% to yield 31.5 basis points over the 2.75% US Treasury notes due 15 August 2032.

The transaction was lead-managed by Credit Agricole CIB, Deutsche Bank, Morgan Stanley, and RBC Capital Markets.

Both tranches achieved wide primary market distribution. On the 2-year tranche, central banks and official institutions represented the bulk of demand, receiving 57.4% of the final allocation. Investors in Europe, Middle East, and Africa (EMEA) were dominant at 45.5%, followed by investors from the Americas (39%) and Asia (15.5%). On the 10-year tranche, orders were anchored by banks, which accounted for 50.5% of the final allocation. In terms of geography, investors in EMEA were dominant at 62.9%, followed by investors from Asia (21.4%) and the Americas (15.7%).

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.