ADB Sells $4 Billion Dual Tranche 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 and a 10-year global bond, each worth $2 billion, the proceeds of which will be part of ADB’s ordinary capital resources.

“We are very pleased with the consistent support from our investors as we launched our third global benchmark outing for this year,” said ADB Treasurer Pierre Van Peteghem. “We raised $4 billion in two maturities which provide us with the resources to continue to assist our developing member countries in Asia and the Pacific.”

The 2-year bond, with a coupon rate of 4.625% per annum payable semi-annually and a maturity date of 13 June 2025, was priced at 99.998% to yield 11.2 basis points over the 4.125% US Treasury notes due May 2025.

The 10-year bond, with a coupon rate of 3.875% per annum payable semi-annually and a maturity date of 14 June 2033, was priced at 99.255% to yield 24.6 basis points over the 3.375% US Treasury notes due May 2033.

The transaction was lead-managed by Deutsche Bank, JP Morgan, Credit Agricole Corporate and Investment Bank, and Morgan Stanley. A syndicate group was also formed consisting of CIBC, RBC Capital Markets, Scotiabank, and Toronto-Dominion Bank.

Both tranches achieved wide primary market distribution. On the 2-year issue, 53% of the bonds were placed in Europe, Middle East, and Africa; 24% in Asia; and 23% in the Americas. By investor type, 64% of the bonds went to central banks and official institutions, 25% to banks, and 11% to fund managers and other types of investors.

On the 10-year issue, 44% of the bonds were placed in Europe, Middle East, and Africa; 35% in the Americas; and 21% in Asia. By investor type, 43% of the bonds went to central banks and official institutions, 41% to banks, and 16% to fund managers and other types of investors.

ADB plans to raise $28 billion–$30 billion from the capital markets in 2023.

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.