The Asian Development Bank (ADB) has successfully priced a $5 billion 3-year global benchmark bond, marking a significant milestone in its annual funding strategy. This bond issuance received exceptional demand, with a record-breaking investor orderbook exceeding $16 billion. Such overwhelming demand highlights the continued strong appeal of ADB’s high-quality credit, reinforcing its prominent position in the global financial landscape.
According to ADB’s Treasurer, Tobias Hoschka, the bond’s success reflects the trust and confidence investors have in ADB’s ability to provide financial support to its developing member countries across Asia and the Pacific. The bond, which is ADB’s first US dollar global offering of the year, carries a coupon rate of 4.375 percent per annum, with interest payable semi-annually. It is set to mature on January 14, 2028, and was priced at 100 percent to yield 10.3 basis points over the 4.25 percent US Treasury notes due in January 2028.
This bond sale is part of ADB’s regular borrowing program, which plays a crucial role in funding the bank’s numerous development projects aimed at driving sustainable economic growth and reducing poverty in the Asia-Pacific region. The ADB plans to raise approximately $34 billion to $36 billion from capital markets in 2025 to support its ongoing initiatives, and this bond issuance is a key part of that effort.
A diverse and global investor base contributed to the bond’s success. The offering saw strong participation across multiple regions, with 54 percent of the bonds placed in Europe, the Middle East, and Africa (EMEA), 30 percent in the Americas, and 16 percent in Asia. The bond was also well-received by a variety of investors, with 52 percent allocated to central banks and official institutions, 38 percent to banks, and 10 percent to fund managers and other investors. This broad distribution further emphasizes the global trust in ADB’s financial stability and its role in fostering economic growth across its member countries.
The bond transaction was managed by a group of leading financial institutions, including Barclays, BofA Securities, Morgan Stanley, and TD Securities. Additionally, a syndicate of other international banks, including Daiwa Capital Markets Europe, ING, NatWest Markets, and Standard Chartered Bank, contributed to the bond’s successful placement in the market. This collaboration of global financial institutions showcases the widespread confidence in ADB’s mission and its ability to mobilize substantial capital in support of its developmental objectives.
As ADB looks ahead to 2025, its borrowing program will continue to play a key role in helping the institution meet its developmental goals. The funds raised through this bond will support ADB’s core mission of providing financial assistance to developing nations, particularly in sectors such as infrastructure, education, and healthcare, all of which are essential for sustainable economic development.
This successful bond sale also underscores the importance of ADB’s financial strategy, which is designed to tap into global markets to generate the resources needed to meet its ambitious goals. With the support of a wide range of investors and financial institutions, ADB is positioning itself as a key enabler of progress in the Asia-Pacific region, paving the way for future economic growth and development.