(MENAFN- Trend News Agency)
BAKU, Azerbaijan, January 9. The Asian
Development bank (ADB) has successfully issued a $5 billion 3-year
global benchmark bond, marking its first US dollar global offering
of the year, Trend reports via the ADB.
Proceeds from the bond will contribute to ADB's ordinary capital
resources, supporting its mission to assist developing member
countries across Asia and the Pacific.
“This transaction demonstrates exceptional demand for ADB's
high-quality credit,” said Tobias Hoschka, ADB Treasurer.“The
record-breaking investor orderbook exceeding $16 billion
underscores the continued confidence of a diverse and global
investor base in ADB. Our borrowing program equips us with vital
resources to drive development efforts in the region.”
The 3-year bond carries a coupon rate of 4.375% per annum,
payable semi-annually, and matures on 14 January 2028. It was
priced at 99.772%, yielding 10.27 basis points over the 4.25% US
Treasury notes due January 2028.
The bond achieved wide-reaching distribution across markets:
54% was placed in Europe, the Middle East, and Africa
(EMEA).
30% went to the Americas.
16% was allocated in Asia.
In terms of investor type:
52% of allocations went to central banks and official
institutions.
38% to banks.
10% to fund managers and other investors.
The transaction was jointly led by Barclays, BofA Securities,
Morgan Stanley, and TD Securities. Additional support came from a
syndicate group comprising Daiwa Capital Markets Europe, ING,
NatWest Markets, and Standard Chartered Bank.
ADB plans to raise between $34 billion and $36 billion from
capital markets in 2025 to bolster its funding for regional
development initiatives.
This milestone highlights ADB's robust credit appeal and its
pivotal role in driving sustainable growth across Asia and the
Pacific.
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