Manila-based lender Asian Development Bank (ADB) recently issued $1.5-billion, five-year global benchmark bonds as part of its plans to raise about $13 billion to $15 billion from the capital markets this year.
In a statement, the ADB said that the proceeds from the bond offering will be part of the bank’s ordinary capital resources and will be used in its nonconcessional operations. The deal marks ADB’s first issue in the US dollar global bond market in 2014.
The bonds, with a coupon rate of 1.875 percent per annum payable semiannually and with a maturity date of April 12, 2019, were priced at 99.814 percent to yield 23.90 basis points over the 1.5-percent US Treasury notes due on December 2018.
“We are pleased with the transaction and the broad sponsorship from investors globally,” said ADB Treasurer Mikio Kashiwagi.
ADB noted that the transaction was lead-managed by Citigroup, HSBC, Morgan Stanley and RBC Capital Markets. A syndicate group was also formed consisting of Daiwa Capital Markets, Deutsche Bank, Goldman Sachs International, Nomura Securities, Standard Chartered Bank and TD Securities.
It added that the issue achieved wide primary market distribution with 31 percent of the bonds placed in Asia, 52 percent in Europe, Middle East, and Africa, and 17 percent in the Americas.
By investor type, 38 percent of the bonds went to central bank and official institutions, 35 percent to banks, 17 percent to fund managers, and 10 percent to other types of investors.