ADB sells $4bn 5-year global benchmark bond
The Asian Development Bank (ADB) on Wednesday said it priced a $4 billion 5-year global bond, proceeds of which will become part of ADB’s ordinary capital resources, Qazinform News Agency cites the Bank’s press service.
“We are delighted with ADB’s second fixed-rate global benchmark of the year,” said ADB Treasurer Tobias Hoschka. “The exceptional investor support facilitated an oversubscription of four times and is a testament to their appreciation of ADB’s mission in the region.”
Priced at 99.515%, the 5-year bond matures on May 28, 2031, with a 4.25% semi-annual coupon, yielding 2.86 basis points above the 3.875% April 2031 US Treasury note.
The transaction was spearheaded by Barclays, BofA Securities, Citigroup, and HSBC. Additionally, a syndicate group comprising Daiwa Capital Markets Europe, ING, and Natixis was formed to facilitate the deal.
The offering experienced strong primary market absorption, with securities distributed across Europe, the Middle East, and Africa (58%), the Americas (22%), and Asia (20%). Regarding investor type, central banks and official institutions accounted for 45% of the placement, followed by traditional banks at 34%, and fund managers or similar entities at 21%.
ADB is set to raise $39 billion–$45 billion from capital markets in 2026.
Earlier, Qazinform reported ADB is to mobilize $30B by 2030 to support ASEAN countries.
