ADB sells $3.5b 2-Year global benchmark bond
Transaction is lead-managed by Credit agricole Cib, deutsche bank, jp morgan, and nomura
The Asian Development Bank (ADB) priced a 2-year global benchmark US dollar bond worth $3.5 billion, the proceeds of which will be part of ADB’S ordinary capital resources. The 2-year bond, with a coupon rate of 4.875% per annum payable semi-annually and a maturity date of 21 May 2026, was priced at 99.904% to yield 9.9 basis points over the 4.875% US Treasury notes due April 2026. The transaction was lead-managed by Credit Agricole CIB, Deutsche Bank, JP Morgan, and Nomura. The issue achieved wide primary market distribution, with 51% placed in the Americas; 38% in Europe, the Middle East, and Africa; and 11% in Asia. By investor type, 66% went to central banks and official institutions, 19% to banks, and 15% to fund managers and other types of investors. ADB plans to raise about $30 billion–$34 billion from the capital markets in 2024. “We are grateful for the consistently robust support from our investor community that resulted in an order book of over $9 billion and enabled the issuance of a $3.5 billion global benchmark bond with a 2-year maturity,” said ADB Treasurer Pierre Van Peteghem in a press statement. “This will help support ADB’S commitment to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific.” ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region, the statement added.