ZCZC
BSS-11
ADB-BONDS
ADB sells $4b dual-tranche 3 & 10-year global benchmark bonds
DHAKA, Oct 1, 2020 (BSS) – The Asian Development Bank (ADB) returned to the
US dollar bond market with the pricing of a 3-year global benchmark bond
worth $3 billion and a 10-year global benchmark bond worth $1 billion,
proceeds of which will be part of ADB’s ordinary capital resources.
“We are pleased with the consistently reliable and strong support of our
investors as we launched our last US dollar benchmark outing for 2020 with a
dual tranche 3- and 10-year transaction,” said ADB Treasurer Pierre Van
Peteghem.
“This has been a record-breaking year for us with over $24 billion raised
in the global benchmark market through six outings. This strong support gives
us the resources to provide much-needed assistance to Asia and the Pacific,
especially during these challenging times,” added Peteghem.
An ADB press release said the 3-year bond, with a coupon rate of 0.25
percent per annum payable semi-annually and a maturity date of 6 October
2023, was priced at 99.893 percent to yield 14 basis points over the 0.125
percent US Treasury notes due September 2023.
The 10-year bond, with a coupon rate of 0.75 percent per annum payable
semi-annually and a maturity date of 8 October 2030, was priced at 98.852
percent to yield 22.66 basis points over the 0.625 percent US Treasury notes
due August 2030.
The transaction was lead-managed by BNP Paribas, Nomura, RBC Capital
Markets, and TD Securities. A syndicate group was also formed consisting of
ANZ, ING, and Standard Chartered.
The release said both tranches achieved wide primary market distribution.
On the 3-year bond, 36 percent of the bonds were placed in Asia; 29 percent
in Europe, Middle East, and Africa; and 35 percent in the Americas.
By investor type, 55 percent of the bonds went to central banks and
official institutions, 25 percent to banks, and 20 percent to fund managers
and other types of investors.
On the 10-year bond, 46 percent of the bonds were placed in Asia; 22
percent in Europe, Middle East, and Africa; and 32 percent in the Americas.
By investor type, 54 percent of the bonds went to central banks and official
institutions, 18 percent to banks, and 28 percent to fund managers and other
types of investors.
ADB plans to raise around $30 billion to $35 billion from the capital
markets in 2020.
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