Wednesday, September 18, 2024
News

Asian Development Bank raises USD 3.5 billion through global bond offering

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

New Delhi | February 28, 2024 1:25:30 PM IST
The Asian Development Bank (ADB) made a significant financial move yesterday by pricing a USD 3.5 billion 5-year global bond, aimed at bolstering its ordinary capital resources and advancing its mission across the Asia-Pacific region.

According to ADB Treasurer Pierre Van Peteghem, the issuance attracted substantial investor interest, totaling around USD 14 billion.

Peteghem said, "This issue garnered around USD 14 billion of investor participation and is ADB's second-largest orderbook ever for a global benchmark bond. It is a strong testament of the support of the investor community in ADB and its vision of a prosperous, inclusive, resilient, and sustainable Asia and the Pacific. We remain grateful for their reliable and consistent presence."

This robust response marks the second-largest orderbook ever recorded for a global benchmark bond issued by ADB, underscoring the unwavering support of the investor community towards ADB's vision of fostering a prosperous, inclusive, resilient, and sustainable Asia and the Pacific.

Peteghem expressed gratitude for the consistent backing of investors, emphasizing their integral role in advancing ADB's mission.

Notably, the 5-year bond features a coupon rate of 4.375 per cent per annum, payable semi-annually, and is set to mature on 6 March 2029.

Priced at 99.827 per cent, the bond offers a yield of 12.7 basis points over the 4.25 per cent United States Treasury notes due February 2029.

BMO Capital Markets, BNP Paribas, Citigroup, and HSBC served as lead managers for the transaction, with additional support from DNB Bank ASA, NatWest Markets, Scotiabank, and Standard Chartered Bank as part of the syndicate group.

The broad primary market distribution saw 35 per cent of the bond placed in the Americas, 33 per cent in Europe, the Middle East, and Africa, and the remaining 32 per cent in Asia.

In terms of investor type, banks accounted for 50 per cent of the allocation, followed by central banks and official institutions at 37 per cent, with fund managers and other investors comprising 13 per cent.

This issuance is part of ADB's broader capital-raising strategy for 2024, aiming to raise approximately USD 30 billion-USD 34 billion from the capital markets.

With this latest bond offering, ADB reinforces its commitment to mobilizing resources to address the region's evolving development challenges and drive sustainable growth and prosperity across Asia and the Pacific. (ANI)

 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE BUSINESS NEWS
International Startup Festival 2024 from...
IYDF and Gravigo Bring Warmth and Suppor...
Bulkcorp International Limited receives ...
WWF-India and Indian Principals' Network...
Adani Group term reports of Kenya Airpor...
RedBeryl Global Expansion through Ellid...
More...
 
INDIA WORLD ASIA
Bahriach: Forest officials intensify 'Op...
BSF foils infiltration attempt in Amrits...
'PM Modi's 100 days in third term has op...
Odisha CM Majhi meets former AP Governor...
J-K Assembly polls: 34 candidates withdr...
J-K: Polling begins for 24 seats in firs...
More...    
 
 Top Stories
"BJP has ruined Haryana in 10 years... 
"Youngsters, elderly all have come ... 
Indian Navy gives proactive push to... 
Pakistan white-ball coach Kirsten u... 
59.19 pc voting till 5 pm in first ... 
Tori Spelling receives congratulato... 
"He's got good taste": Katy Perry s... 
Awards Trust of India Set to Honor ...