ADB sells $3.5 billion 2-year global benchmark bond

ISLAMABAD   -  The Asian Development Bank (ADB) has priced a 2-year global benchmark United States (US) dollar bond worth $3.5 billion, proceeds of which will be part of ADB’s ordinary capital resources.

“We are grateful for the consistently robust support from our investor community that resulted in an orderbook of over $9 billion and enabled the issuance of a $3.5 billion global benchmark bond with 2-year maturity,” said ADB Treasurer Pierre Van Peteghem, according to press release received here.

“This will help support ADB’s commitment to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific,” Peteghem said. The 2-year bond, with a coupon rate of 4.875 percent per annum payable semi-annually and a maturity date of 21 May 2026, was priced at 99.904 percent to yield 9.9 basis points over the 4.875 percent 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 percent placed in the Americas; 38 percent in Europe, Middle East, and Africa; and 11 percent in Asia. By investor type, 66 percent went to central banks and official institutions, 19 percent to banks, and 15 percent to fund managers and other types of investors. ADB plans to raise about $30 billion–$ 34 billion from the capital markets in 2024, the press release added.

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