ADB sells $4b dual-tranche 3 and 10-year global benchmark bonds
Published : Thursday, 1 October, 2020 at 2:58 PM Count : 225
The Asian Development Bank (ADB) returned to the US dollar bond market with the pricing of a 3-year global benchmark bond
worth $3 billion and a 10-year global benchmark bond worth $1 billion, proceeds of which will be part of ADB’s ordinary capital resources.
“We are pleased with the consistently reliable and strong support of our investors as we launched our last US dollar benchmark outing for 2020 with a dual tranche 3- and 10-year transaction,” said ADB Treasurer Pierre Van Peteghem, reports BSS.
“This has been a record-breaking year for us with over $24 billion raised in the global benchmark market through six outings. This strong support gives us the resources to provide much-needed assistance to Asia and the Pacific, especially during these challenging times,” added Peteghem.
An ADB press release said the 3-year bond, with a coupon rate of 0.25 percent per annum payable semi-annually and a maturity date of 6 October 2023, was priced at 99.893 percent to yield 14 basis points over the 0.125 percent US Treasury notes due September 2023.
The 10-year bond, with a coupon rate of 0.75 percent per annum payable semi-annually and a maturity date of 8 October 2030, was priced at 98.852 percent to yield 22.66 basis points over the 0.625 percent US Treasury notes due August 2030.
The transaction was lead-managed by BNP Paribas, Nomura, RBC Capital Markets, and TD Securities. A syndicate group was also formed consisting of ANZ, ING, and Standard Chartered.
The release said both tranches achieved wide primary market distribution. On the 3-year bond, 36 percent of the bonds were placed in Asia; 29 percent in Europe, Middle East, and Africa; and 35 percent in the Americas.
By investor type, 55 percent of the bonds went to central banks and official institutions, 25 percent to banks, and 20 percent to fund managers and other types of investors.
On the 10-year bond, 46 percent of the bonds were placed in Asia; 22 percent in Europe, Middle East, and Africa; and 32 percent in the Americas. By investor type, 54 percent of the bonds went to central banks and official institutions, 18 percent to banks, and 28 percent to fund managers and other types of investors.
ADB plans to raise around $30 billion to $35 billion from the capital markets in 2020.