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Business

ADB raises $3.5 billion from bond issuance

Louise Maureen Simeon - The Philippine Star
ADB raises $3.5 billion from bond issuance
ADB’s first global benchmark bond issue this year is in line with its goal of raising up to $36 billion from the capital markets in 2022.
AFP / File

MANILA, Philippines — The Asian Development Bank (ADB) has raised $3.5 billion from a five-year dollar bond issuance, proceeds of which will form part of its ordinary capital resources.

ADB’s first global benchmark bond issue this year is in line with its goal of raising up to $36 billion from the capital markets in 2022.

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

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

“With an order book 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,” ADB treasurer Pierre Van Peteghem said.

The transaction was led-managed by BofA Securities Inc., Citigroup Inc., Deutsche Bank AG and JPMorgan Chase & Co.

A syndicate group was also formed consisting of CIBC World Markets Inc., DBS Bank Limited, ING Group and Scotiabank.

The five-year issue achieved wide primary market distribution with 48 percent in Europe, Middle East, and Africa, 30 percent of the bonds placed in the Americas, and 22 percent in Asia.

By investor type, 44 percent of the bonds went to central banks and official institutions, 41 percent to banks, and 15 percent to fund managers and other types of investors.

ASIAN DEVELOPMENT BANK

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