Safeguard Policy Statement & Strategy 2020 Midterm Review
ADB in the News
GlobalCapital
The ELCEDA
ADB adds to dual tranche dollar trend as OeKB aims for threes
The Asian Development Bank and Oesterreichische Kontrollbank hit screens with
dollar deals on Monday, with ADB adding more supply to a burst of dual tranche
trades the included deals last week by the World Bank and the Japan Bank for
International Cooperation.
By: Ben Jaglom 18 April 2016
ADB mandated leads Bank of America Merrill Lynchh, BNP Paribas, Goldman
Sachs and Mizuho for a dual tranche global deal at two and 10 years. Initial price
thoughts of 8bp area over mid-swaps were circulated for the two year bond and
42bp area over swaps for the 10 year.
The decisions to opt for a dual tranche follows last week's deals by the World Bank
and JBIC in dual tranche formats. World Bank printed at two and seven years on
12 April while JBIC went for a deal at 5 and 10 years the same day.
"There are a number of reasons why so many issuers are opting for dual tranche
deals," said a head of SSA syndicate on the deal.
"There is a window of opportunity that issuers are spotting in the market after the
dismal start to the year we had and the global decline in equity prices. Doing a
dual tranche enables issuers to minimize their execution risk while also limiting the
number of times they have to come to the market."
A head of SSA syndicate on the deal said that funding conditions were likely to stay
strong in April.
"We began April with a great deal of supply and we felt that this would be a great
moment to get in early while investors remained in key spirits," he said.
Public Finance
International
NEWS & CONVENT ON GLOBAL PURCANCIAL MANAGEMENT
ADB sells $3bn bond in US market
By: Emma Rumney
9 Mar 16
The Asian Development Bank has re-entered the US dollar bond market
with the sale of a $3bn, five-year global benchmark bond.
The bank, which aims to raise a total of $20bn from capital markets this
year, said the proceeds of the bond will become part of its ordinary
capital resources and used in its non-concessional operations.
"This is another stellar outcome for the ADB against a challenging
backdrop that has prevailed since the beginning of 2016," said ADB
treasurer Pierre Van Peteghem. "Strong demand for the transaction
allowed us to size a $3bn new issue in line with our strategy of providing
the market with liquid benchmark bonds across the curve."
Van Peteghem added that the bank is pleased by the geographically
diverse investor participation, with 46% of bonds placed in Asia, 29% in
Europe, the Middle East and Africa and 25% in the Americas. He said
this is "testament to the institution's robust credit fundamentals and
loyal global following in the capital markets".
The majority (58%) of bonds went to central banks and official
institutions, with banks taking a further 29% and the remaining 13%
brought by fund managers and other types of investors.
The five-year bond has a coupon rate of 1.625% payable semi-annually
and a maturity date of 16 March 2021.
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