By Angela McDaniels
Tacoma, Wash., Oct. 11 – Asian Development Bank priced $3 billion of 1˝% five-year notes at 99.722 to yield Treasuries plus 11.5 basis points, according to a bank news release.
The offering was lead-managed by BofA Securities, Citi, Daiwa Capital Markets Europe Ltd. and HSBC Bank plc. A syndicate group was also formed consisting of Commerzbank, Danske Bank, DNB Bank, Nordea Bank and Wells Fargo Securities.
The bank said that around 65 investors took part and that 34% of the bonds were placed in Asia, 42% in Europe, the Middle East, and Africa and 24% in the Americas. By investor type, 58% of the bonds went to central banks and official institutions, 32% to banks and 10% to fund managers and other types of investors.
The bank plans to raise around $24 billion from the capital markets in 2019.
The proceeds of the new issue will become part of the bank’s ordinary capital resources.
“Market conditions have been volatile these past few months with rates marching steadily downward and swap spreads nearing their historical lows,” bank treasurer Pierre Van Peteghem said in the news release.
“Following the pop-up in swap spreads, we saw a window to bring ADB’s last global benchmark of 2019 in the five-year part of the curve adding to the existing three-year, five-year, and 10-year lines issued earlier on.”
Based in Manila, Asian Development Bank provides financing for projects aimed at reducing poverty in Asia and the Pacific.
| Issuer: | Asian Development Bank
|
| Issue: | Notes
|
| Amount: | $3 billion
|
| Maturity: | Oct. 18, 2024
|
| Bookrunners: | BofA Securities, Citi, Daiwa Capital Markets Europe Ltd., HSBC Bank plc (managers), Commerzbank, Danske Bank, DNB Bank, Nordea Bank and Wells Fargo Securities
|
| Coupon: | 1˝%
|
| Price: | 99.722
|
| Spread: | Treasuries plus 11.4 bps
|
| Announcement date: | Oct. 11
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
