ADB prices $3bn five-year global benchmark bond
The Asian Development Bank has prices a $3 billion five-year global benchmark bond issue.
The transaction was lead-managed by Bank of America Merrill Lynch, Citi, Daiwa Capital Markets Europe Limited, and HSBC Bank plc. A syndicate group was also formed consisting of Commerzbank, Danske Bank, DNB Bank, Nordea Bank, and Wells Fargo Securities.
The bond, with a coupon rate of 1.500% per annum payable semi-annually and a maturity date of 18 October 2024, was priced at 99.722% to yield 11.4 basis points over the 1.500% US Treasury notes due September 2024.
The issue achieved wide primary market distribution with 34% of the bonds placed in Asia; 42% in Europe, Middle East, and Africa; and 24% in the Americas. By investor type, 58% of the bonds went to central banks and official institutions, 32% to banks, and 10% to fund managers and other types of investors.
Proceeds of will be part of ADB’s ordinary capital resources.
