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ADB Prices $1.5 Billion 5-year Global Bond Issue

January 23, 2014

MANILA, PHILIPPINES -- The Asian Development Bank (ADB) returned to the US dollar bond market yesterday with the pricing of a $1.5 billion , 5-year global benchmark bond issue, proceeds of which will be part of the bank's ordinary capital resources and used in its non-concessional operations. "We are pleased with the transaction and the broad sponsorship from investors globally," said ADB Treasurer, Mikio Kashiwagi . The bonds, with a coupon rate of 1.875% per annum payable semiannually and a maturity date of 12 April 2019 , were priced at 99.814% to yield 23.90 basis points over the 1.50% US Treasury notes due December 2018 . The transaction was lead-managed by Citigroup , HSBC , Morgan Stanley , and RBC Capital Markets . A syndicate group was also formed consisting of Daiwa Capital Markets , Deutsche Bank , Goldman Sachs International , Nomura Securities , Standard Chartered Bank , and TD Securities . The deal marks ADB's first issue in the US dollar global bond market in 2014. The issue achieved wide primary market distribution with 31% of the bonds placed in Asia , 52% in Europe , Middle East , and Africa , and 17% in the Americas . By investor type, 38% of the bonds went to central bank and official institutions, 35% to banks, 17% to fund managers, and 10% to other types of investors. ADB plans to raise around $13 to $15 billion from the capital markets in 2014. .

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Source: M2 PressWIRE

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