KUALA LUMPUR (Mar 15): The Asian Development Bank (ADB) has priced a US$3.25 billion 5-year global benchmark bond issue, proceeds of which will be part of ADB’s ordinary capital resources.

In a statement on its website, ADB Treasurer Pierre Van Peteghem said the bank was pleased with the strong reception to its second benchmark offering in 2018.

“We are happy to accommodate ongoing demand for ADB paper with this new 5-year issue following the solid performance of our dual tranche outing in January,” he said.

ADB said the 5-year bond, with a coupon rate of 2.75% per annum payable semi-annually and a maturity date of March 17, 2023, was priced at 2.871% to yield 25 basis points over the 2.625% US Treasury notes due Feb 28, 2023.

The transaction was lead-managed by Bank of America Merrill Lynch, HSBC, Morgan Stanley, and RBC Capital Markets. A syndicate group was also formed consisting of Credit Agricole, Daiwa, DBS Bank, SMBC Nikko, and Wells Fargo.

ADB said the issue achieved wide primary market distribution with 39% of the bonds placed in Europe, the Middle East, and Africa, 34% in Asia, and 27% in the Americas.

By investor type, 55% of the bonds went to central banks and official institutions, 27% to banks, and 18% to fund managers and other types of investors.

ADB said it plans to raise around US$25 billion from the capital markets in 2018.