Manila, Philippines (BBN) - The Asian Development Bank (ADB) returned to the US dollar bond market overnight, pricing a $1.25 billion 7-year global bond.
The bonds, with a coupon rate of 1.875 percent and a maturity date of 23 October 2018, were priced at 99.837 percent to yield 27.15 basis points over the 1.375 percent US Treasury bond due September 2018.
The transaction was lead-managed by Daiwa Capital Markets, Deutsche Bank, JPMorgan Chase and UBS, an ADB statement said on Friday.
The deal marks ADB's third issue in the US dollar global bond market in 2011. In February, ADB raised $2.75 billion through a five-year bond and in June, it sold another $1.5 billion in three-year bonds.
The deal reached broad demand in the primary market with 56 percent of the bonds placed in Asia, 27 percent in the Americas and 17 percent in Europe, Middle East, and Africa. By investor type, 72 percent were central banks and official institutions, 16 percent were banks, 8.0 percent were fund managers, and 4.0 percent were other types of investors.
ADB plans to raise $13 billion to $14 billion from the bond markets in 2011.
BBN/SSR/AD-14Oct11-5:33 pm(BST)