The issue was conducted with Citigroup, Goldman Sachs, and Nomura as lead managers. A syndicate group was formed with CSFB, Daiwa, Deutsche Bank, DrKW, HSBC, Lehman Brothers, Merrill Lynch, Mitsubishi Securities, and UBS as co-lead managers.
The bonds, with a coupon rate of 4.125 percent per annum payable semi-annually and maturity date of Sept. 15, 2010, were priced at 99.652-percent to yield 20 basis points over the 3.875-percent US Treasury due July 2010.
The deal marks ADB’s first in the US dollar global bond market since October 2004, when it launched its $1-billion 4.25-percent global bonds due October 2014.
"After the highly successful 10-year benchmark issue last October, this five-year transaction reinforces ADB’s core funding strategy of maintaining a strong presence in key currency bond markets through regular issuance of liquid benchmark global bonds," Mikio Kashiwagi, ADB treasurer said.
As with previous benchmark transactions, the issue achieved broad primary market distribution with about 65 percent of the bonds placed in Asia, 15 percent in the US, and 20 percent in Europe. By investor types, around 70 percent of the bonds went to central banks and government institutions, 12 percent to bank treasuries, 11 percent to insurers and pension funds, five percent to fund managers, and one percent, others.
The proceeds of the issue will be part of ADB’s ordinary capital resources and used in its non-concessional operations. – TPT