ADB returns to dollar bond market
Manila, Philippines: The Asian Development Bank (ADB) returned to the
US dollar bond market with the pricing of a dual tranche $1.75 billion
5-year and $1.25 billion 10-year global benchmark bond issue, proceeds
of which will be part of the bank's ordinary capital resources and used
in its non-concessional operations.
"We are pleased with the transaction and the strong reception from
investors globally," said ADB Deputy Treasurer Kazuki Fukunaga.
The five-year bond, with a coupon rate of 1.5% per annum payable
semiannually and a maturity date of 22 January 2020, was priced at
1.543% to yield 15.75 basis points over the 1.625% US Treasury notes due
The 10-year bond, with a coupon rate of 2.0% per annum payable
semiannually and a maturity date of 22 January 2025, was priced at
2.124% to yield 20.7 basis points over the 2.25% US Treasury notes due
The transaction was lead-managed by Citigroup, Daiwa, Goldman Sachs
and JP Morgan. A syndicate group was also formed consisting of Bank of
America-Merrill Lynch, Credit Agricole CIB, Credit Suisse, Deutsche
Bank, Development Bank of Singapore, HSBC, Morgan Stanley, Nomura
International, RBC Capital Markets Corporation, SMBC Nikko Capital
Markets, Standard Chartered Bank, and TD Securities.
The deal marks ADB's first global benchmark issue in the US dollar
global bond market in 2015.
Both issues achieved wide primary market distribution with 40% of the
five-year bonds placed in Asia, 24% in Europe, Middle East and Africa
and 36% in the Americas. By investor type, 59% of the bonds went to
central banks and official institutions, 34% to banks, 5% to fund
managers, and 2% to other types of investors.