BAKU, Azerbaijan, January 5. The Asian Development Bank (ADB) has priced two global benchmark United States (US) dollar bonds on January 4, Trend reports via the Bank.
Reportedly, the bonds, valued at $3 billion for a 3-year maturity and $2 billion for a 10-year maturity, are part of ADB's ordinary capital resources.
The 3-year bond, featuring a coupon rate of 4.125 percent per annum payable semi-annually and a maturity date of 12 January 2027, was priced at 99.663 percent to yield 11.9 basis points over the 4.375 percent US Treasury notes due December 2026. Simultaneously, the 10-year bond, carrying a coupon rate of 4.125 percent per annum payable semi-annually and maturing on 12 January 2034, was priced at 99.530 percent to yield 21.3 basis points over the 4.5 percent US Treasury notes due November 2033.
The transaction was orchestrated by BofA Securities, Morgan Stanley, RBC Capital Markets, and TD Securities as lead managers. A syndicate group, consisting of CIBC Capital Markets, Daiwa Capital Markets Europe, NatWest Markets, Standard Chartered Bank, and Scotiabank, also played a pivotal role.
Both bond tranches achieved broad primary market distribution. For the 3-year issue, 36 percent of the bonds were placed in Europe, the Middle East, and Africa; 33 percent in Asia; and 31 percent in the Americas. In terms of investor distribution, 66 percent of the bonds were allocated to central banks and official institutions, 21 percent to banks, and 13 percent to fund managers and other investor types. Regarding the 10-year issue, 54 percent of the bonds found placement in Europe, the Middle East, and Africa; 29 percent in the Americas; and 17 percent in Asia. Investor distribution for the 10-year issue was as follows: 50 percent to banks, 28 percent to central banks and official institutions, and 22 percent to fund managers and other investors.
Looking ahead, ADB plans to raise approximately $30 billion-$34 billion from capital markets in 2024.
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