ADB raises $3.5 billion from 5-year global bonds

MANILA, Philippines — The Asian Development Bank (ADB) raised $3.5 billion from the issuance of five-year global bonds to support social and economic development initiatives in Asia-Pacific.

In a statement, ADB treasurer Tobias Hoschka said the bond issuance was the multilateral lender’s second five-year dollar bond issue this year.

“With this last dollar global benchmark issue of 2024, we are grateful for investors’ continued support of ADB in the capital markets which provides the necessary resources to assist its developing members in Asia and the Pacific,” Hoschka said.

The five-year bond has a coupon rate of 3.625 percent per annum payable semi-annually and a maturity date of Aug.28, 2029.

It was priced at 99.462 percent to yield 9.8 basis points over the four percent US Treasury notes due July 2029.

Citigroup, Credit Agricole CIB, J.P. Morgan and Wells Fargo Securities were the lead managers for the transaction.

A syndicate group for the transaction was also formed consisting of Barclays, Daiwa Capital Markets Europe, Deutsche Bank, Standard Chartered Bank and Swedbank.

The ADB said the bond issuance had wide primary market distribution with 58 percent placed in Europe, Middle East and Africa; 29 percent in the Americas and 13 percent in Asia.

It also said 42 percent went to banks, 41 percent to central banks and official institutions and 17 percent to fund managers and other types of investors.

For 2024, ADB intends to raise up to $34 billion from the capital markets.

ADB provides loans, technical assistance, grants and equity investments to its members to promote social and economic development.

Most of ADB’s lending comes from its ordinary capital resources, offered at near-market terms to lower- to middle-income countries – and beginning 2017 – at very low interest rates to lower income countries.

The multilateral lender’s ordinary capital resources operations cover agriculture and natural resources, education, energy, finance, health and social protection, industry and trade, public sector management, transport and information and communication technology, as well as water supply and other municipal infrastructure and services.