ADB sells $5 billion dual tranche 3- and 10-year global benchmark bonds

“We are very pleased with the strong and consistent support of our investors on our first US dollar global benchmark outing for 2024,” said ADB Treasurer Pierre Van Peteghem. “This provides us with additional resources as we actively support our developing member countries in our evolving mission to address challenges confronting Asia and the Pacific.”

Source: Internet

The 3-year bond, with a coupon rate of 4.125% per annum payable semi-annually and a maturity date of 12 January 2027, was priced at 99.663% to yield 11.9 basis points over the 4.375% US Treasury notes due December 2026.

The 10-year bond, with a coupon rate of 4.125% per annum payable semi-annually and a maturity date of 12 January 2034, was priced at 99.530% to yield 21.3 basis points over the 4.5% US Treasury notes due November 2033.

The transaction was lead-managed by BofA Securities, Morgan Stanley, RBC Capital Markets, and TD Securities. A syndicate group was also formed consisting of CIBC Capital Markets, Daiwa Capital Markets Europe, NatWest Markets, Scotiabank, and Standard Chartered Bank.

Both tranches achieved wide primary market distribution. On the 3-year issue, 36% of the bonds were placed in Europe, the Middle East, and Africa; 33% in Asia; and 31% in the Americas. By investor type, 66% of the bonds went to central banks and official institutions, 21% to banks, and 13% to fund managers and other types of investors. On the 10-year issue, 54% of the bonds were placed in Europe, the Middle East, and Africa; 29% in the Americas; and 17% in Asia. By investor type, 50% of the bonds went to banks, 28% to central banks and official institutions, and 22% to fund managers and other types of investors.

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