ADB sells $3bn bond in US market

9 Mar 16

The Asian Development Bank has re-entered the US dollar bond market with the sale of a $3bn, five-year global benchmark bond.

The bank, which aims to raise a total of $20bn from capital markets this year, said the proceeds of the bond will become part of its ordinary capital resources and used in its non-concessional operations.

“This is another stellar outcome for the ADB against a challenging backdrop that has prevailed since the beginning of 2016,” said ADB treasurer Pierre Van Peteghem. “Strong demand for the transaction allowed us to size a $3bn new issue in line with our strategy of providing the market with liquid benchmark bonds across the curve.”

Van Peteghem added that the bank is pleased by the geographically diverse investor participation, with 46% of bonds placed in Asia, 29% in Europe, the Middle East and Africa and 25% in the Americas.

He said this is “testament to the institution’s robust credit fundamentals and loyal global following in the capital markets”.

The majority (58%) of bonds went to central banks and official institutions, with banks taking a further 29% and the remaining 13% brought by fund managers and other types of investors.

The five-year bond has a coupon rate of 1.625% payable semi-annually and a maturity date of 16 March 2021. 

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