New Issue: ADB sells 1 billion yuan of panda bonds

By Reshmi Basu

New York, Oct. 13 - The Asian Development Bank said it priced an inaugural offering of 1 billion yuan of panda bonds in the People's Republic of China.

The 10-year bullet issue priced at par to yield 3.34%. The deal priced at the middle of price guidance. Guidance had been set at 3.30% to 3.39%.

Bank of China International (BOCI) Ltd. was the lead manager.

The issue was three-times oversubscribed. Domestic banks made up 39% of investors, followed by foreign banks with 31%. Insurance companies and other investor types each had 15%.

ADB will use the proceeds to fund its development projects in China.

"The objective is to help reduce currency mismatches for borrowers that have no foreign exchange earnings," the bank said in a press release.

"After India and the Philippines, PRC [China] is the third country where ADB plans to undertake local currency financing," it added.

Issuer: Asian Development Bank

Amount: 1 billion yuan

Issue Panda bonds

Maturity: Oct. 14, 2015

Coupon: 3.34%

Issue price: Par

Yield: 3.34%

Pricing date: Oct. 13

Lead manager: Bank of China International (BOCI) Ltd.

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