Asian Development Bank in bonds push

6 Apr 20

The Asian Development Bank has sold its largest-ever single tranche of bonds as it strives to continue its work amid the coronavirus crisis.

 

According to the Manila-based organisation, the proceeds from the $4.5bn two-year global bond will become part of its ordinary capital resources.

ADB is delighted to be able to show its strength in the capital markets through these very challenging times. This issue, the largest single tranche issuance in ADB’s history, enhances ADB’s liquidity to respond to Asia’s development needs during and beyond this COVID-19 crisis,” said ADB treasurer Pierre Van Peteghem.

“Targeting the two-year point on the curve allows ADB to respond to deep investor demand as reflected in the final orderbook being over $7bn, while still tightening the pricing from initial guidance by five basis points.”

The bond has a coupon rate of 0.625% per year and a maturity date of 7 April 2022.

ADB said it plans to raise around $25bn from capital markets this year.

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