THE Asian Development Bank (ADB) returned to the US dollar bond market with the pricing of a USD 5 billion five-year global bond, proceeds of which will be part of ADB's ordinary capital resources.

"With investor interest in excess of USD 14 billion, this represents ADB's largest order book for a global benchmark bond to date and is a hugely impressive outcome for ADB and the regional members it supports in Asia and the Pacific," said ADB Treasurer Mr Pierre Van Peteghem.

A confluence of factors contributed to the record USD 5 billion final print in the post-Easter issuance window, including "attractive swap spreads and pick-up versus US Treasuries, and relatively low issuance supply in March," Mr Peteghem added.

The 5-year bond, with a coupon rate of 1 per cent per annum payable semi-annually and a maturity date of April 14, 2026, was priced at 99.942 per cent to yield 15.25 basis points over the 0.75 per cent US Treasury notes due March, 2026.

The transaction was lead-managed by BMO Capital Markets, Credit Agricole CIB, Deutsche Bank, and Goldman Sachs International.

ADB said the issue achieved wide primary market distribution, with 33 per cent of the bonds placed in Asia, 48 per cent in Europe, Middle East, and Africa, and 19 per cent in the Americas.

By investor type, 53 per cent of the bonds went to central banks and official institutions, 21 per cent to banks, and 26 per cent to fund managers and other types of investors.

The development lender said it plans to raise around USD 34-36 billion from the capital markets in 2021.