ADB returns to US dollar market with dual-tranche global benchmark bonds

The Asian Development Bank has returned to the US dollar bond market with the pricing of a three-year global benchmark bond worth $2.25 billion and a ten-year global benchmark bond worth $2 billion.

The three-year bond, with a coupon rate of 1.625% per annum payable semi-annually and a maturity date of 24 January 2023, was priced at 99.953% to yield 7.7 basis points over the 1.5% US Treasury notes due January 2023. 

The ten-year bond, with a coupon rate of 1.875% per annum payable semi-annually and a maturity date of 24 January 2030, was priced at 99.610% to yield  13.25 basis points over the 1.75% US Treasury notes due November 2029. 

The transaction was lead-managed by Barclays, J.P. Morgan, Nomura, and RBC Capital Markets. A syndicate group was also formed consisting of ANZ, Commerzbank, ING, Credit Agricole, and Natwest Markets. 

Both issues achieved wide primary market distribution with 37% of the three-year bonds placed in Asia, 37% in the Americas, and 26% in Europe, Middle East, and Africa. By investor type, 51% of the bonds went to central banks and official institutions, 35% to banks, and 14% to fund managers and other types of investors.  

For the ten-year bonds, 55% were placed in Europe, Middle East, and Africa; 31% in Asia; and 14% in the Americas. By investor type, 36% of the bonds went to central banks and official institutions, 44% to banks, 20% to fund managers, and other types of investors. 

Proceeds will be part of ADB’s ordinary capital resources.