MANILA, Philippines — Manila-based Asian Development Bank (ADB) has raised $4 billion from a dual dollar bond issuance, the proceeds of which will form part of its ordinary capital resources.
The multilateral lender priced a three-year global benchmark bond worth $3 billion, and a 10-year global benchmark bond worth $1 billion.
ADB’s third global benchmark bond issue this year is in line with its goal of raising between $34 billion to $36 billion from the capital markets this year.
Most of ADB’s lending comes from its ordinary capital resources, offered at near-market terms to lower- to middle-income countries just like the Philippines.
The three-year bond has a coupon rate of 2.875 percent per annum payable semi-annually, with a maturity date of May 6, 2025. It was priced at 99.882 percent to yield 12.625 basis points over the 2.625 percent US Treasury notes due April 2025.
On the other hand, the 10-year bond has a coupon rate of 3.125 percent per annum payable semi-annually, with a maturity date of April 27, 2032. It was priced at 99.966 percent to yield 26.95 basis points over the 1.875 percent US Treasury notes due February 2032.
“Through this transaction, we raised $4 billion across two maturities, which provide us with the resources to continue to assist our developing member countries in Asia and the Pacific,” ADB treasurer Pierre Van Peteghem said.
The transaction was led-managed by BofA Securities Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co., and Nomura Holdings Inc.
A syndicate group was also formed consisting of CIBC World Markets Inc., Daiwa Securities Group, DBS Bank Ltd., Standard Chartered, and Scotiabank.
The three-year issue achieved wide primary market distribution, with 48 percent of the bonds placed in the Americas, 41 percent in Europe, Middle East, and Africa, and 11 percent in Asia.
By investor type, 36 percent of the bonds went to central banks and official institutions, 41 percent to banks, and 23 percent to fund managers and other types of investors.
Likewise, the 10-year issue achieved wide primary market distribution with 46 percent of the bonds placed in Asia, 38 percent in Europe, Middle East, and Africa, and 16 percent in the Americas.
By investor type, 45 percent of the bonds went to central banks and official institutions, 22 percent to fund managers and other types of investors, and 34 percent to banks.