ADB plans to raise $30-35 bn from capital mkt in 2020; sells $4-bn bonds

The 3-year bonds worth $4 billion, with a coupon rate of 0.25% per annum payable semi-annually, have a maturity date of July 14, 2023

The Asian Development Bank (ADB) on Wednesday said it plans to raise $30-35 billion from the capital market in 2020 and added that it has sold $4 billion worth 3-year global bonds to boost its capital resources.

The ADB returned to the US dollar bond market with the pricing of the $4-billion 3-year global bonds, the proceeds of which will be part of its ordinary capital resources, the Manila-headquartered multilateral funding agency said in a release.

"ADB plans to raise around $30 billion to $35 billion from the capital markets in 2020," it said.

The 3-year bonds worth $4 billion, with a coupon rate of 0.25 per cent per annum payable semi-annually, have a maturity date of July 14, 2023.

"We are appreciative of the consistently solid investor support that the ADB receives in its US dollar bond outings. This trade is no exception. The transaction was well oversubscribed, which enabled us to fine-tune pricing and still print one of our largest 3-year dollar issue sizes at $4 billion," said ADB Treasurer Pierre Van Peteghem.

Peteghem added that this gives the ADB the resources to continue to provide much-needed assistance to the Asia-Pacific region, particularly during this pandemic.

The transaction was lead-managed by Bank of Montreal, Deutsche Bank, Goldman Sachs, and Morgan Stanley. A syndicate group was also formed consisting of ANZ, Credit Agricole CIB, Daiwa, ING, Mizuho, and Natwest.

The target for 2020 has been raised from its April announcement to raise $25 billion from the capital markets.

On April 1, 2020, it had informed about selling $4.5 billion global bonds, its largest-ever single-tranche outing. The proceeds will be part of its ordinary capital resources, it had said.

The agency is owned by 68 members -- 49 from the Asia-Pacific region.