ADB Sells $3.5 Billion 5-Year Global Benchmark Bond

MANILA, PHILIPPINES (12 January 2022) — The Asian Development Bank (ADB) returned to the United States (US) dollar bond market with the pricing of a $3.5 billion 5-year global benchmark bond, proceeds of which will be part of ADB’s ordinary capital resources.

“We are pleased with the support from our investors across regions in our first global benchmark of the year,” said ADB Treasurer Pierre Van Peteghem. “With an orderbook of over $5 billion, we are able to raise $3.5 billion in additional resources as we assist our developing member countries in overcoming the health, social, and economic impact of the pandemic.”

The 5-year bond, with a coupon rate of 1.5% per annum payable semi-annually and a maturity date of 20 January 2027, was priced at 99.431% to yield 8.73 basis points over the 1.25% US Treasury notes due December 2026.

The transaction was lead-managed by BofA Securities, Citi, Deutsche Bank, and JP Morgan. A syndicate group was also formed consisting of CIBC Capital Markets, DBS, ING, and Scotiabank.

The issue achieved wide primary market distribution, with 22% of the bonds placed in Asia; 48% in Europe, Middle East, and Africa; and 30% in the Americas. By investor type, 44% of the bonds went to central banks and official institutions, 41% to banks, and 15% to fund managers and other types of investors.

ADB plans to raise $34 billion–$36 billion from the capital markets in 2022.

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.