ADB sells $3.5 bln 2-Year Global Benchmark Bond

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The Asian Development Bank (ADB) has priced a 2-year global benchmark United States (US) dollar bond worth $3.5 billion, proceeds of which will be part of ADB’s ordinary capital resources.
“We are grateful for the consistently robust support from our investor community that resulted in an orderbook of over $9 billion and enabled the issuance of a $3.5 billion global benchmark bond with 2-year maturity,” said ADB Treasurer Pierre Van Peteghem, according to press release received here.

“This will help support ADB’s commitment to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific,” Peteghem said.
The 2-year bond, with a coupon rate of 4.875% per annum payable semi-annually and a maturity date of 21 May 2026, was priced at 99.904% to yield 9.9 basis points over the 4.875% US Treasury notes due April 2026.
The transaction was lead-managed by Credit Agricole CIB, Deutsche Bank, J.P. Morgan, and Nomura.
The issue achieved wide primary market distribution, with 51% placed in the Americas; 38% in Europe, Middle East, and Africa; and 11% in Asia. By investor type, 66% went to central banks and official institutions, 19% to banks, and 15% to fund managers and other types of investors.
ADB plans to raise about $30 billion–$34 billion from the capital markets in 2024, the press release added.