ADB Sells $ 3 Billion Global 3-Year Benchmark Bonds – India Education | Latest Education News | Global education news
MANILA – The Asian Development Bank (ADB) re-entered the US dollar bond market with the price of a 3-year $ 3 billion global bond, the proceeds of which will form part of the ADB’s ordinary capital resources.
â€œThis 3-year transaction closes a phenomenal year for ADB in capital markets,â€ said AfDB Treasurer Pierre Van Peteghem. â€œGiven the strong order book of over $ 6.6 billion, the final price was set at 2 basis points as part of the initial pricing thoughts with a print size of $ 3 billion that was in line with our remaining global US dollar market funding requirements for 2021. â€
â€œInvestor interest in our good work was as impressive as ever, especially amid lingering concerns about the COVID-19 pandemic. We thank the AfDB’s global investors for their continued support to our mission and the financial assistance provided to our members in these troubled times, â€added Mr. Van Peteghem.
The 3-year bond, with a coupon rate of 0.625% per annum payable semi-annually and a maturity date of October 8, 2024, was valued at 99.946% for a yield of 9.1 basis points against the bonds of the US Treasury at 0.375% due September 2024.
The transaction was led by BofA Securities, Morgan Stanley, Nomura and RBC Capital Markets. A syndicate group was also formed, made up of BNP Paribas, CIBC Capital Markets, Scotiabank and SEB.
The issue was widely distributed on the primary market with 20% of the bonds placed in Asia; 44% in Europe, the Middle East and Africa; and 36% in the Americas. By type of investor, 65% of bonds went to central banks and official institutions, 24% to banks and 11% to fund managers and other types of investors.
The AfDB plans to raise around $ 34 billion to $ 36 billion in capital markets in 2021.
The AfDB is committed to achieving a prosperous, inclusive, resilient and sustainable Asia and the Pacific, while continuing its efforts to eradicate extreme poverty. Founded in 1966, it is owned by 68 members, including 49 from the region.