The transaction drew strong investor demand, with an order book exceeding $16 billion, marking the bank’s first US dollar global offering of the year.
“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 was priced at 99.772% to yield 10.27 basis points above the 4.25% US Treasury notes maturing January 2028. Barclays, BofA Securities, Morgan Stanley, and TD Securities acted as lead managers for the transaction. Additionally, Daiwa Capital Markets Europe, ING, NatWest Markets, and Standard Chartered Bank formed a syndicate group.
The issue was distributed primarily to Europe, the Middle East, and Africa (54%), the Americas (30%), and Asia (16%). Central banks and official institutions took up 52% of the issue, while banks and fund managers and other investors accounted for 38% and 10%, respectively.
ADB aims to raise $34 billion to $36 billion from capital markets in 2025 in lieu of achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while eradicating extreme poverty, the release added.