ADB sells record $5bn global benchmark bond
The Asian Development Bank returned to the US dollar bond market with the pricing of a $5 billion five-year global bond, proceeds of which will be part of the lender's ordinary capital resources.
The bond, with a coupon rate of 1% per annum payable semi-annually and a maturity date of 14 April, 2026, was priced at 99.942% to yield 15.25 basis points over the 0.75% US Treasury notes due March 2026. The transaction was lead-managed by BMO Capital Markets, Credit Agricole CIB, Deutsche Bank, and Goldman Sachs International.
The issue achieved wide primary market distribution, with 33% of the bonds placed in Asia; 48% in Europe, Middle East, and Africa; and 19% in the Americas. By investor type, 53% of the bonds went to central banks and official institutions, 21% to banks, and 26% to fund managers and other types of investors.
