ADB prices €1.5b three-year benchmark bond

MANILA, Philippines: The Asian Development Bank (ADB) yesterday raised €1.5 billion from its first euro-denominated benchmark bond. The proceeds from the three-year bond will be part of the bank's ordinary capital resources and used in its non-concessional operations.

"We are satisfied with this maiden issue in euros and the strong demand from a broad set of investors, resulted in an oversubscribed book. Such a positive reception enabled us to increase the size of the issue from €1 billion to €1.5 billion," said ADB Treasurer Mikio Kashiwagi.

The bonds, with a coupon rate of 0.375% per annum payable annually and a maturity date of April 3, 2017, were priced at 99.860% to yield 16.9 basis points over the 0.5% German government notes (OBL -163) due in April 2017. The transaction was lead managed by BNP Paribas, Deutsche Bank, Goldman Sachs International and HSBC.