Manila January 9 2025: The Asian Development Bank (ADB) plans to raise about $34 billion–$36 billion from the capital markets in 2025.
Recently ADB has priced a $5 billion 3-year global benchmark bond, proceeds of which will be part of ADB’s ordinary capital resources.
“ADB saw exceptional demand for its first US dollar global offering of the year,” said ADB Treasurer Tobias Hoschka. “The record investor orderbook above $16 billion supported by a diverse and global investor base, shows the ongoing appeal of ADB’s high quality credit. ADB’s borrowing program provides it with the necessary resources to assist its developing members in Asia and the Pacific.”
The 3-year bond, with a coupon rate of 4.375% per annum payable semi-annually and a maturity date of 14 January 2028, was priced at 99.772% to yield 10.27 basis points over the 4.25% US Treasury notes due January 2028.
The transaction was lead-managed by Barclays, BofA Securities, Morgan Stanley and TD Securities. A syndicate group was also formed consisting of Daiwa Capital Markets Europe, ING, NatWest Markets, and Standard Chartered Bank.
The issue achieved wide primary market distribution with 54% placed in Europe, Middle East, and Africa, 30% in the Americas; and 16% in Asia. By investor type, 52% went to central banks and official institutions, 38% to banks, and 10% to fund managers and other types of investors.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.
