Thursday, 03 June 2021 19:37

ADB sells $5.5 billion dual tranche 3- and 7-year bonds Featured




Manila [The Philippines], June 3 (ANI): The Asian Development Bank (ADB) returned to the US dollar bond market with the pricing of a three-year global benchmark bond worth $4 billion and a seven-year global benchmark bond worth $1.5 billion, proceeds of which will be part of ADB’s ordinary capital resources.

"We are delighted with the strong support from our investors across regions in our dual tranche three- and seven-year outing," said ADB Treasurer Pierre Van Peteghem.

"With an order book of over $12 billion, we raised over $5 billion across the two maturities. Once again, this provides us with additional resources to assist our developing member countries in Asia and the Pacific," he said in a statement on Thursday.

The three-year bond, with a coupon rate of 0.375 per cent per annum payable semi-annually and a maturity date of June 11, 2024, was priced at 99.94 per cent to yield 9.75 basis points over the 0.25 per cent United States (US) Treasury notes due May 2024.

The seven-year bond, with a coupon rate of 1.25 per cent per annum payable semi-annually and a maturity date of June 9, 2028, was priced at 99.414 per cent to yield 8.8 basis points over the 1.25 per cent US Treasury notes due May 2028.

The transaction was lead-managed by Barclays, Citi, JP Morgan, and TD Securities. A syndicate group was also formed consisting of CIBC, Daiwa, ING, and Scotiabank.

Both tranches achieved wide primary market distribution. On the three-year issue, 22 per cent of the bonds were placed in Asia; 35 per cent in Europe, Middle East, and Africa; and 43 per cent in the Americas.

By investor type, 51 per cent of the bonds went to central banks and official institutions, 32 per cent to banks, and 17 per cent to fund managers and other types of investors.

On the seven-year issue, 42 per cent of the bonds were placed in Asia; 42 per cent in Europe, Middle East, and Africa; and 16 per cent in the Americas.

By investor type, 67 per cent of the bonds went to central banks and official institutions, 18 per cent to banks, and 15 per cent to fund managers and other types of investors.

ADB plans to raise $34 billion to $36 billion from the capital markets in 2021. (ANI)