ADB raises $5 billion from 3-year and 7-year global bonds

We are pleased with our recent USD global benchmark outing, successfully raising $5 billion through a dual-tranche transaction, said ADB Treasurer Tobias Hoschka. "Robust demand from investors across geographies reflects continued confidence in ADB’s strong credit profile, its role as a dependable source of liquidity, and its ability to advance its development mandate by mobilizing capital for sustainable and inclusive economic development across Asia and the Pacific.”

The three-year bond carries a 4.875% annual coupon, payable semi-annually, and matures on 2 October 2029. It was priced at 99.671% to yield 5.7 basis points above the 4.375% US Treasury notes maturing in September 2029.

The seven-year bond carries a 5% annual coupon, also payable semi-annually, and matures on 30 September 2033. It was priced at 99.476% to yield 7.3 basis points above the 4.5% US Treasury notes maturing in August 2033.

The transaction was lead-managed by BofA Securities, Crédit Agricole CIB, J.P. Morgan, and RBC Capital Markets.

Both tranches achieved broad distribution across global markets. For the three-year issue, 56% of the bonds were allocated to investors in Europe, the Middle East and Africa, 30% to the Americas, and 14% to Asia. By investor type, banks accounted for 62%, central banks and official institutions for 25%, and fund managers and other investors for 13%.

For the seven-year issue, 60% of the bonds were placed in Europe, the Middle East and Africa, 23% in the Americas, and 17% in Asia. Banks received 51% of the bonds, while central banks and official institutions accounted for 26%, and fund managers and other investors for 23%.

ADB plans to raise around $39 billion to $45 billion from capital markets in 2026.

Earlier, Qazinform reported ADB priced a $2 billion 10-year global benchmark bond.