ADB Sells $5 Billion Global Bond
Deal News | Jan 09, 2025 | Asian Development Bank
The Asian Development Bank (ADB) has successfully priced a $5 billion 3-year global benchmark bond, marking its first US dollar global offering of the year. Enthusiastic interest from global investors resulted in an orderbook surpassing $16 billion, indicating the strong market confidence in ADB's high-quality credit. The bond, with a coupon rate of 4.375% per annum, will yield 10.27 basis points over US Treasury notes due January 2028. The transaction was led by Barclays, BofA Securities, Morgan Stanley, and TD Securities, with participation from major institutions like Daiwa Capital Markets Europe and Standard Chartered Bank. ADB plans to utilize the funds to further its mission of fostering sustainable development in Asia and the Pacific, with an overall target of raising between $34 billion and $36 billion from capital markets in 2025.
Sectors
- Financial Services
- Development and Aid
Geography
- Asia and the Pacific – ADB's activities and initiatives primarily focus on improving the economic conditions in Asia and the Pacific.
- Global – The global bond issuance includes significant participation from investors worldwide, including regions such as Europe, the Middle East, Africa, and the Americas.
Industry
- Financial Services – The issuance of a major bond by ADB falls under the financial services sector, highlighting activities related to debt capital markets and global finance.
- Development and Aid – ADB's primary mission is to promote economic growth and cooperation in Asia and the Pacific, which classifies it within the development and aid industry.
Financials
- $5,000,000,000 – Total value of the 3-year global benchmark bond issued by ADB.
- $34,000,000,000-$36,000,000,000 – ADB's capital raising target from the capital markets for the year 2025.
- 4.375% – Coupon rate per annum for the bond, payable semi-annually.
- 10.27 basis points – Yield over the 4.25% US Treasury notes due January 2028.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Asian Development Bank (ADB) | Issuer | Company | The primary issuer of the $5 billion global benchmark bond. |
| Tobias Hoschka | Treasurer | Person | ADB Treasurer overseeing the bond issuance. |
| Barclays, BofA Securities, Morgan Stanley, TD Securities | Lead Managers | Company | Financial institutions leading the management of ADB's bond transaction. |
| Daiwa Capital Markets Europe, ING, NatWest Markets, Standard Chartered Bank | Syndicate Group | Company | Part of the syndicate group facilitating the bond issuance. |