ADB issues second $3.5 billion 5-year global benchmark bond in 2024

Source: Internet

“We are very pleased with the strong outcome of ADB’s second 5-year US dollar bond issue this year,” said ADB Treasurer Tobias Hoschka. “With this last US dollar global benchmark issue of 2024, we are grateful for investors' continued support of ADB in the capital markets which provides the necessary resources to assist its developing members in Asia and the Pacific."

The 5-year bond, with a coupon rate of 3.625% per annum payable semi-annually and a maturity date of 28 August 2029, was priced at 99.462% to yield 9.8 basis points over the 4.00% US Treasury notes due July 2029.

The transaction was lead-managed by Citigroup, Credit Agricole CIB, J.P. Morgan and Wells Fargo Securities. A syndicate group was also formed consisting of Barclays, Daiwa Capital Markets Europe, Deutsche Bank, Standard Chartered Bank, and Swedbank.

The issue achieved wide primary market distribution with 58% placed in Europe, Middle East, and Africa; 29% in the Americas; and 13% in Asia. By investor type, 42% went to banks, 41% to central banks and official institutions, and 17% to fund managers and other types of investors.

ADB plans to raise about $30 billion–$34 billion from the capital markets in 2024./.