ADB Sells Record $4 Billion 5-Year Global Benchmark Bond

The Asian Development Bank (ADB) returned to the US dollar bond market with the pricing of a $4 billion 5-year global benchmark bond issue, proceeds of which will be part of ADB's ordinary capital resources.

For the fourth time this year we have issued large liquid global dollar benchmarks, equalling ADB's largest-ever US dollar global benchmark issue at $4 billion, said ADB Treasurer Pierre Van Peteghem. The depth and breadth of the support we have seen from the investor community on this transaction reaffirms the strategy we have followed in the capital markets this year in response to a larger borrowing requirement.

As a result of the final $4 billion outcome, our 2017 borrowing program is well advanced bringing us closer to this year's funding requirements. However, we remain nimble and able to consider attractive pre-funding ideas for the remainder of the year, Van Peteghem added.

The 5-year bond, with a coupon rate of 1.750% per annum payable semi-annually and a maturity date of 13 September 2022, was priced at 1.840% to yield 19.45 basis points over the 1.625% US Treasury notes due August 2022.

The transaction was lead-managed by Bank of America Merrill Lynch, BNP Paribas, Mizuho, and TD Securities. A syndicate group was also formed consisting of Daiwa Securities, DBS Bank, HSBC, ING, Morgan Stanley, Nomura, SMBC Nikko, and Wells Fargo.

With over 100 investors taking part, the issue achieved wide primary market distribution with 38% of the bonds placed in Asia, 34% in Europe, Middle East, and Africa, and 28% in the Americas. By investor type, 62% of the bonds went to central banks and official institutions, 22% to banks, and 16% to fund managers and other types of investors.

ADB plans to raise around $27 billion to $30 billion from the capital markets in 2017.

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