• Friday, Oct 30, 2020
  • Last Update : 01:28 pm

ADB sells $4bn dual-tranche 3, 10-year global benchmark bonds

  • Published at 04:57 pm October 1st, 2020
ADB
Photo showing the logo of the Asian Development Bank on the premise gate Collected

'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'

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.

“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% per annum payable semi-annually and a maturity date of 6 October  2023, was priced at 99.893% to yield 14 basis points over the 0.125% US Treasury notes due September 2023.

The 10-year bond, with a coupon rate of 0.75% per annum payable semi-annually and a maturity date of 8 October 2030, was priced at 98.852% to yield 22.66 basis points over the 0.625% 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% of the bonds were placed in Asia; 29% in Europe, Middle East, and Africa; and 35% in the Americas.

By investor type, 55% of the bonds went to central banks and official institutions, 25% to banks, and 20% to fund managers and other types of investors.

On the 10-year bond, 46% of the bonds were placed in Asia; 22% in Europe, Middle East, and Africa; and 32% in the Americas.

By investor type, 54% of the bonds went to central banks and official institutions, 18% to banks, and 28% to fund managers and other types of investors.

ADB plans to raise around $30 billion to $35 billion from the capital markets in 2020.

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