ADB sells $4.5bn 5-year global benchmark bond
The Asian Development Bank returned to the US dollar bond market with the pricing of a $4.5 billion five-year global benchmark bond issue, proceeds of which will be part of the lender's ordinary capital resources.
The transaction was lead-managed by Bank of America, Citi, TD Securities, and HSBC Bank plc. A syndicate group was also formed consisting of Bank of Montreal, BNP Paribas, Deutsche Bank, SEB, and Nordea Bank.
The bond, with a coupon rate of 0.625% per annum payable semi-annually and a maturity date of 29 April 2025, was priced at 99.818% to yield 34.35 basis points over the 0.500% US Treasury notes due March 2025.
With around 130 investors taking part, the issue achieved wide primary market distribution with 35% of the bonds placed in Asia; 34% in Europe, Middle East, and Africa; and 31% in the Americas. By investor type, 56% of the bonds went to central banks and official institutions, 26% to banks, and 18% to fund managers and other types of investors.
