ADB sells $2 billion 10-year global benchmark bond

By ANI | Published: February 25, 2021 04:42 PM2021-02-25T16:42:21+5:302021-02-25T16:50:08+5:30

The Asian Development Bank (ADB) has priced a two billion dollar 10-year global bond, proceeds of which will be part of ADB's ordinary capital resources.

ADB sells $2 billion 10-year global benchmark bond | ADB sells $2 billion 10-year global benchmark bond

ADB sells $2 billion 10-year global benchmark bond

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The Asian Development Bank (ADB) has priced a two billion dollar 10-year global bond, proceeds of which will be part of ADB's ordinary capital resources.

"We appreciate the strong support of our investors for this new 10-year global bond issue," said ADB Treasurer Pierre Van Peteghem on Thursday.

"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."

The 10-year bond, with a coupon rate of 1.5 per cent per annum payable semi-annually and a maturity date of March 4, 2031, was priced at 99.088 per cent to yield 18.35 basis points over the 1.125 per cent US Treasury notes due in February 2031.

The transaction was lead-managed by JP Morgan, Nomura, RBC, and TD Securities. A syndicate group was also formed consisting of ANZ, Credit Agricole CIB, ING, Natixis, and Scotiabank.

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

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

ADB plans to raise around 30 billion to 35 billion dollars from the capital markets in 2021.

( With inputs from ANI )

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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