May 23, 2012 (LBO) - Central banks and official institutions have bought 63 percent of a 1.25 billion US dollar 3-year bond sold by the Asian Development Bank, the Manila based regional lender said.
The bond of the 'AAA' rated lender carried a coupon of 0.5 percent a year payable semiannually and was sold to yield 0.605 percent of 19.55 basis points above US Treasury notes maturing in May 2015.
"We are quite pleased with the transaction and the broad interest from investors resulting in a book in excess of $1.25 billion with over 40 investors,” said ADB Treasurer Mikio Kashiwagi, said in a statement.
Around 63 percent were bought by central banks and official institutions, 20 percent by fund managers, and 17 percent by banks and others, ADB said.
About 52 percent of the bonds were sold in placed in Asia, 22 percent in Europe, Middle East and Africa, and 26 percent in the Americas.
Asian central bank's which are pegged to the US dollar are among the largest seekers of top grade US dollar assets in the world.
The proceeds of the Bank’s third global bond issue of the year will form part of the bank’s ordinary capital resources and will be used in its non-concessional operations.
Asian Development Bank mainly finances government projects in Asia, and also supports private sector development.
The deal was lead-managed by Credit Suisse, Deutsche Bank, HSBC, and Nomura.
ADB said it plans to raise 14 billion from the capital markets in 2012 about the same as in 2011.