MANILA, PHILIPPINES (24 November 2021) — The Asian Development Bank (ADB) today raised CNY1 billion (about $156 million) from the Panda bond market. This is ADB’s second Panda bond issue in 2021.
The bond, which pays a 2.78% annual coupon and features a 5-year bullet maturity, is redeemable in November 2026.
The offering was fully subscribed, with 57% going to international investors and 43% to domestic investors, through a centralized bookbuilding and auction in the China Inter-Bank Bond Market. The bond issue was arranged by lead underwriter and bookrunner Bank of China with China Construction Bank and DBS Bank as joint leads and bookrunners.
Proceeds of the issue will be added to ADB’s ordinary capital resources and deployed to support ADB’s local currency operations in Chinese renminbi. The bond was priced 20 basis points below the corresponding China Development Bank bond reference yield, and 6 basis points above Chinese government bonds.
“Access to domestic capital markets is the key to unlocking liquidity,” said ADB Treasurer Pierre Van Peteghem. “The China Inter-Bank Bond Market is among the deepest and most liquid in the world. Reconnecting with Panda bond investors has been an absolute success story for ADB.” Last March, ADB issued a CNY2 billion 5-year bond.
ADB is a regular borrower in the international bond markets and has also led issuances in developing Asian countries as part of its efforts to promote local currency bond markets as an alternative to bank lending. In 2021, ADB has issued Asian local currency bonds in Chinese renminbi, Georgian lari, Indian rupees, Kazakhstan tenge, and Pakistan rupees.
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.