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| [PHOTO:401(K) 2013/CC BY-SA 2.0] |
Manila: The Asian Development Bank (ADB) has returned to the US dollar
bond market with the pricing of a $1 billion 7-year global benchmark
bond issue. The proceeds of the bond will be part of the bank’s ordinary
capital resources and used in its non-concessional operations.
“We are very pleased
with the outcome of the transaction and the consistently solid support shown by
a diverse set of investors,” said ADB Treasurer Mikio Kashiwagi.
The bonds, with a
coupon rate of 1.375% per annum payable semiannually and a maturity date of 23
March 2020, were priced at 99.888% to yield 17.45 basis points over the 1.125%
US Treasury notes due December 2019.
The transaction was
lead-managed by Goldman Sachs, Morgan Stanley, and RBC Capital Markets. A
syndicate group was also formed consisting of BNP Paribas, Citi, Daiwa, SMBC
Nikko, and TD Securities.
The book achieved
broad primary distribution with about 59% of the bonds placed in Asia, 29% in
Europe, Middle East and Africa, and 12% in the Americas. By investor type, around 54% were bought by
central banks and official institutions, 27% by fund managers, 18% by banks,
and 1% others.
ADB plans to raise
around $14-16 billion from the capital markets in 2013.