Manila, Philippines (BBN) – The Asian Development Bank (ADB) returned to the US dollar bond market on Thursday with a US$1.25 billion 5-year global benchmark bond issue.
Proceeds from the issue will go into ADB’s ordinary capital resources for use in its non-concessional operations, an ADB press statement said on Friday.
The bonds, which mature on 5 September 2013, have a coupon of 3.625 per cent per annum, payable semiannually. They are priced at 99.552 per cent to yield 67.25 basis points over the 3.375 per cent US Treasury note, due July 2013, according to the statement.
“We are very satisfied with the transaction and the robust demand from investors, which resulted in an oversubscribed book,” said ADB Treasurer Mikio Kashiwagi. “The interest from central banks is the highest we have seen, reflecting the high quality of the order book.”
About 44 per cent of the bonds were placed in Europe, Middle East and Africa, 34 per cent in Asia, and 22 per cent in the Americas. By investor types, around 92 per cent were bought by central banks, 6 per cent by fund managers, and 2 per cent by banks.
The ADB plans to raise around $9 billion in 2008.
The transaction was lead-managed by BNP Paribas, JP Morgan and Nomura. A syndicate group was also formed consisting of Citigroup, Daiwa, Dresdner, HSBC, Merrill Lynch, Mitsubishi UFJ Securities, Morgan Stanley, RBC Capital Markets, TD Securities and UBS, the statement said.
BBN/SI/SI/AD-29 August08-12:48 PM