ADB raises $2 billion from bond issue

MANILA, Philippines — Manila-based Asian Development Bank has raised $2 billion from a 10-year dollar bond issuance, the proceeds of which will form part of its ordinary capital resources.

The global benchmark bond issue is ADB’s second issuance for the year in line with its goal of raising $30 billion to $35 billion from the capital markets this year.

Most of ADB’s lending comes from its ordinary capital resources, offered at near-market terms to lower- to middle-income countries just like the Philippines.

The 10-year bond has a coupon rate of 1.5 percent per annum payable semi-annually and with a maturity date of March 4, 2031.

It was priced at 99.088 percent to yield 18.35 basis points over the 1.125 percent US Treasury notes due February 2031.

“This is our second successful outing in the US dollar market this year. The constructive result provides us with more resources to support our developing members in Asia and the Pacific, especially those most affected by the pandemic,” ADB treasurer Pierre Van Peteghem said.

The transaction was managed by JP Morgan Chase and Co., Nomura Holdings, RBC Capital Markets and TD Securities.

A syndicate group was also formed consisting of Australia and New Zealand Banking Group, Crédit Agricole Corporate and Investment Bank, ING Group, Natixis and Scotiabank.

The issue achieved wide primary market distribution with 48 percent of the bonds placed in Europe, Middle East and Africa; 27 percent in Asia and 25 percent in the Americas.

By investor type, 56 percent of the bonds went to central banks and official institutions, 30 percent to banks, and 14 percent to fund managers and other types of investors.