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ADB sells record 5 bln USD 5-year global benchmark bond

MANILA
2021-04-08 17:04

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MANILA, April 8 (Xinhua) -- The Asian Development Bank (ADB) returned to the U.S. dollar bond market with the pricing of a 5 billion U.S. dollar 5-year global bond, proceeds of which will be part of its ordinary capital resources, the Manila-based bank said on Thursday.

"With investor interest in excess of 14 billion U.S. dollars, this represents ADB's largest orderbook for a global benchmark bond to date and is a hugely impressive outcome for ADB and the regional members it supports in Asia and the Pacific," ADB Treasurer Pierre Van Peteghem said in a statement.

Several factors contributed to the record final print in the post-Easter issuance window, "including attractive swap spreads and pick-up versus U.S. Treasuries, and relatively low issuance supply in March," Van Peteghem added.

The 5-year bond, with a coupon rate of 1 percent per annum payable semi-annually and a maturity date of April 14, 2026, was priced at 99.942 percent to yield 15.25 basis points over the 0.75 percent U.S. Treasury notes due March 2026.

The ADB added that the issue achieved wide primary market distribution, with 33 percent of the bonds placed in Asia, 48 percent in Europe, Middle East, and Africa, as well as 19 percent in the Americas.

By investor type, the ADB said that 53 percent of the bonds went to central banks and official institutions, 21 percent to banks, and 26 percent to fund managers and other types of investors.

ADB said it plans to raise around 34 to 36 billion U.S. dollars from the capital markets in 2021.
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