ADB launches 5-year global bond

MANILA, Philippines - The Asian Development Bank (ADB) has launched its $1.5 billion, five-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.

The bonds, with a coupon rate of 1.875-percent per annum payable semi-annually and a maturity date of April 12, 2019, were priced at 99.814 percent to yield 23.90 basis points over the 1.5-percent US Treasury notes due December 2018.

The transaction was lead-managed by Citigroup, HSBC, Morgan Stanley, and RBC Capital Markets.

A syndicate group was also formed consisting of Daiwa Capital Markets, Deutsche Bank, Goldman Sachs International, Nomura Securities, Standard Chartered Bank, and TD Securities.

The deal marks ADB’s first issue in the US dollar global bond market in 2014.

The issue achieved wide primary market distribution with 31 percent of the bonds placed in Asia, 52 percent in Europe, Middle East, and Africa, and 17 percent in the Americas. 

By investor type, 38 percent of the bonds went to central bank and official institutions, 35 percent to banks, 17 percent to fund managers, and 10 percent to other types of investors.

ADB plans to raise around $13 to $15 billion from the capital markets in 2014.