January 09, 2025 —The Asian Development Bank (ADB) has successfully priced a $5 billion 3-year global benchmark bond, marking its first US dollar global offering of the year. The proceeds will contribute to ADB’s ordinary capital resources.
“ADB saw exceptional demand for its first US dollar global offering of the year,” said ADB Treasurer Tobias Hoschka. “The record investor orderbook above $16 billion supported by a diverse and global investor base, shows the ongoing appeal of ADB’s high quality credit. ADB’s borrowing program provides it with the necessary resources to assist its developing members in Asia and the Pacific."
The bond, maturing on 14 January 2028, carries a coupon rate of 4.375% per annum, payable semi-annually. It was priced at 99.772% to yield 10.27 basis points over the 4.25% US Treasury notes due January 2028.
The transaction was lead-managed by Barclays, BofA Securities, Morgan Stanley and TD Securities. A syndicate group was also formed, comprising Daiwa Capital Markets Europe, ING, NatWest Markets, and Standard Chartered Bank.
The issuance saw broad primary market distribution, with:
By investor type, the allocation was as follows:
ADB plans to raise approximately $34 billion–$36 billion from the capital markets in 2025.
ADB is dedicated to promoting a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while continuing its efforts to eradicate extreme poverty. Established in 1966, the institution is owned by 69 members, 49 of which are from the region.
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