ADB sells $3.5 billion 5-year global benchmark bond

Source: Internet

“This issue garnered around $14 billion of investor participation and is ADB’s second-largest orderbook ever for a global benchmark bond,” said ADB Treasurer Pierre Van Peteghem. “It is a strong testament of the support of the investor community in ADB and its vision of a prosperous, inclusive, resilient, and sustainable Asia and the Pacific. We remain grateful for their reliable and consistent presence.”

The largest orderbook was achieved in 2021 for a $5 billion global benchmark bond.

The 5-year bond, with a coupon rate of 4.375% per annum payable semi-annually and a maturity date of 6 March 2029, was priced at 99.827% to yield 12.7 basis points over the 4.25% United States Treasury notes due February 2029.

The transaction was lead-managed by BMO Capital Markets, BNP Paribas, Citigroup, and HSBC. A syndicate group was also formed consisting of DNB Bank ASA, NatWest Markets, Scotiabank, and Standard Chartered Bank.

The issue achieved wide primary market distribution with 35% placed in the Americas; 33% Europe, Middle East, and Africa; and 32% in Asia. By investor type, 50% went to banks, 37% to central banks and official institutions, and 13% to fund managers and other types of investors.

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