Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 8): The Asian Development Bank (ADB) has returned to the US dollar bond market with the pricing of a US$3.25 billion 3-year global benchmark bond, proceeds of which will be part of ADB’s ordinary capital resources and used in its non-concessional operations.

In a statement on its website yesterday, the ADB said it plans to raise around US$20 billion from the capital markets in 2016.

ADB Treasurer Pierre Van Peteghem said the exercise represented the ADB’s largest-ever global benchmark transaction issued to date.

“We were definitely pleased by the level of oversubscription in the order book with investor interest in excess of $4 billion, testament to the institution’s robust credit fundamentals and loyal global following in the capital markets,” said Van Peteghem.  

The ADB said the 3-year bond, with a coupon rate of 1.375% per annum payable semi-annually and a maturity date of 15 January 2019, was priced at 99.655% to yield 23.2 basis points over the 1.250% US Treasury notes due December 2018.

The transaction was lead-managed by Bank of America Merrill Lynch, HSBC, Morgan Stanley, and TD Securities.  

A syndicate group was also formed consisting of BMO Capital Markets, BNP Paribas, Citi, Credit Agricole, Credit Suisse, Daiwa, Deutsche Bank, J.P. Morgan, Mizuho, Nomura, RBC Capital Markets, and Standard Chartered. 

The ADB sadid the issue achieved wide primary market distribution with 35% of the bonds placed in Asia, 34% in Europe, Middle East, and Africa, and 31% in the Americas.

It said that by investor type, 68% of the bonds went to central banks and official institutions, 20% to banks, and 12% to fund managers and other types of investors.

 

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