ADB starts 2018 with a BANG, raises $5.25B from dollar bond sale
The Asian Development Bank returned to the US dollar bond market with a bang, as it raised $5.25 billion from a dual-tranche issue that received the biggest demand on record for the Manila-based lender.
The triple-A borrower sold $3.75 billion three-year and $1.5 billion 10-year global benchmark bonds that were priced at spreads tighter than initially targeted.
?ADB marked a strong start to the New Year with this pair of global dollar benchmarks in our core market topping off a fortnight of benchmark issuance across other non-core currencies including Australian dollar, New Zealand dollar, and pound sterling,? ADB Treasurer Pierre Van Peteghem said in a statement published on the bank?s website.
?Not only were we able to print ADB?s largest trades in a single outing, but the combined order book represented the largest-ever level of subscription we have seen to date,? the ADB official said.
The robust demand ?enabled ADB to upsize and tighten the price guidance for both transactions,? he added.
The 2.25 percent bond due January 2021 was priced at 19.20 basis points over the 2 percent US Treasuries due January 2021, yielding 2.287 percent. The 2.75 percent bond due January 2028 was priced at 21.85 bps over the 2.25 percent USTs due November 2027 to yield 2.783 percent.
The deal was part of ADB?s $25-28 billion fund-raising plan for this year.
Goldman Sachs, J.P. Morgan, Nomura and TD Securities were the lead-managers for the transaction. A syndicate group was also formed composed of Credit Agricole, DBS bank, ING, Mizuho and Morgan Stanley.
Proceeds from the debt sale would be used for the ADB?s ordinary capital resources. The bank did not disclose the order book. (Jun Ebias)