THE treasurer of Asian Development Bank (ADB) Pierre Van Peteghem has said he is happy with the solid performance of the bank particularly in its bonds
He was quoted by Xinhua today as saying the bank is returned to the U.S. dollar bond market with the pricing of a 3.25 billion U.S. dollars 5-year global benchmark bond issue, proceeds of which will be part of ADB's ordinary capital resources.
"We are very pleased with the strong reception to our second benchmark offering in 2018. We are happy to accommodate the ongoing demand for ADB paper with this new 5-year issue following the solid performance of our dual tranche outing in January," said Peteghem.
The Manila-based bank's 5-year bond, with a coupon rate of 2.75 percent per annum payable semi-annually and a maturity date of March 17, 2023, was priced at 2.871 percent to yield 25 basis points over the 2.625 percent U.S. Treasury notes due Feb. 28, 2023.
The bank said the transaction was lead-managed by Bank of America Merrill Lynch, HSBC, Morgan Stanley, and RBC Capital Markets. A syndicate group was also formed consisting of Credit Agricole, Daiwa, DBS Bank, SMBC Nikko, and Wells Fargo, it said.
"The issue achieved wide primary market distribution with 39 percent of the bonds placed in Europe, the Middle East, and Africa, 34 percent in Asia, and 27 percent in the Americas," the ADB said.
By investor type, the ADB said 55 percent of the bonds went to central banks and official institutions, 27 percent to banks, and 18 percent to fund managers and other types of investors.
ADB plans to raise around 25 billion U.S. dollars from the capital markets in 2018.
Established in 1966, ADB has more than 50 years of development partnership in the region. It is owned by 67 countries -- 48 from the region.