Transaction was lead-managed by BofA Securities, Morgan Stanley, Nomura, and RBC Capital Markets
MANILA: The Asian Development Bank (ADB) returned to the US dollar bond market with the pricing of a $3 billion 3-year global bond, proceeds of which will be part of ADB’s ordinary capital resources.
ADB Treasurer Pierre Van Peteghem said that this 3-year transaction closes out a phenomenal year for ADB in the capital markets. He said that given the robust order book in excess of $6.6 billion, final pricing was set 2 basis points inside initial price thoughts with a print size of $3 billion that was in line with ADB’s remaining funding requirement from the US dollar global market for 2021.
“Investor interest in our good work was as ever impressive, particularly amid lingering concerns over the Covid-19 pandemic. We thank ADB’s global investors for their continued support of our mission and the financial assistance provided to our members during these turbulent times,” Peteghem added.
The 3-year bond, with a coupon rate of 0.625% per annum payable semi-annually and a maturity date of 8 October 2024, was priced at 99.946% to yield 9.1 basis points over the 0.375% US Treasury notes due September 2024.
The transaction was lead-managed by BofA Securities, Morgan Stanley, Nomura, and RBC Capital Markets. A syndicate group was also formed consisting of BNP Paribas, CIBC Capital Markets, Scotiabank, and SEB.
The issue achieved wide primary market distribution with 20% of the bonds placed in Asia; 44% in Europe, Middle East, and Africa; and 36% in the Americas. By investor type, 65% of the bonds went to central banks and official institutions, 24% to banks, and 11% to fund managers and other types of investors.
The ADB plans to raise around $34 billion–$36 billion from the capital markets in 2021.