Asian Development Bank issues $3 billion five-year global benchmark bond

ADB returned to US dollar bond market with the pricing of a $3 billion five-year global bond proceeds of which will be part of ADB's ordinary capital resources

The Asian Development Bank (ADB) returned to US dollar bond market with the pricing of a three billion dollars five-year global bond proceeds of which will be part of ADB's ordinary capital resources.

"We looked at the post-summer issuance window and saw an opportunity to add a new five-year to our global benchmark curve," said ADB Treasurer Pierre Van Peteghem on Wednesday.

"With most of the immediate action in the dollar market situated around the long end, we felt that the mid part of the curve was relatively under-supplied and decided to capitalise on pent-up demand," he said in a statement.

"The result was a strong one with an over-subscribed order book for a three billion dollars benchmark print that will provide much-needed resources to support ADB's increased assistance to its regional members in 2020," said Peteghem.

The five-year bond with a coupon rate of 0.375 per cent per annum payable semi-annually and a maturity date of September 3, 2025, was priced at 99.556 per cent to yield 15.4 basis points over the 0.25 per cent US Treasury notes due in July 2025.

The transaction was lead-managed by Bank of America, Credit Agricole CIB, Citi and JP Morgan. A syndicate group was also formed consisting of ANZ, BNP Paribas, DBS Bank Ltd, Natixis and Rabobank.

The issue achieved wide primary market distribution with 41 per cent of the bonds placed in Asia, 34 per cent in Europe, the Middle East and Africa, and 25 per cent in the Americas.

By investor type, 52 per cent of the bonds went to central banks and official institutions, 31 per cent to banks, and 17 per cent to fund managers and other types of investors.

ADB plans to raise around 30 billion to 35 billion dollars from the capital markets in 2020.