BAKU, Azerbaijan, January 9. The Asian Development Bank (ADB) has successfully issued a $5 billion 3-year global benchmark bond, marking its first US dollar global offering of the year, TurkicWorld reports via the ADB.
Proceeds from the bond will contribute to ADB’s ordinary capital resources, supporting its mission to assist developing member countries across Asia and the Pacific.
"This transaction demonstrates exceptional demand for ADB’s high-quality credit," said Tobias Hoschka, ADB Treasurer. "The record-breaking investor orderbook exceeding $16 billion underscores the continued confidence of a diverse and global investor base in ADB. Our borrowing program equips us with vital resources to drive development efforts in the region."
The 3-year bond carries a coupon rate of 4.375% per annum, payable semi-annually, and matures on 14 January 2028. It was priced at 99.772%, yielding 10.27 basis points over the 4.25% US Treasury notes due January 2028.
The bond achieved wide-reaching distribution across markets:
54% was placed in Europe, the Middle East, and Africa (EMEA).
30% went to the Americas.
16% was allocated in Asia.
In terms of investor type:
52% of allocations went to central banks and official institutions.
38% to banks.
10% to fund managers and other investors.
The transaction was jointly led by Barclays, BofA Securities, Morgan Stanley, and TD Securities. Additional support came from a syndicate group comprising Daiwa Capital Markets Europe, ING, NatWest Markets, and Standard Chartered Bank.
ADB plans to raise between $34 billion and $36 billion from capital markets in 2025 to bolster its funding for regional development initiatives.
This milestone highlights ADB’s robust credit appeal and its pivotal role in driving sustainable growth across Asia and the Pacific.
