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ADB sets ambitious fundraise target for 2017, eyes $25-30bn

The Manila-based multilateral has kicked off the year by issuing a $4bn bond, about $640m of which was snapped up by institutional investors.

The Asian Development Bank has collected $4 billion by completing a dual-tranche, dollar-denominated bond issue this week, kick-starting its campaign to raise at least $25 billion in the capital markets this year. 

ADB sold $3 billion three-year and $1 billion 10-year bonds to investors across the globe. The issue was over-subscribed with a total book order of $4.4 billion, according to an ADB spokesperson. 

Primary market distribution shows 40 percent of the three-year bonds went to Asia, 29 percent to Europe, Middle East and Africa, and 31 percent to the Americas. By investor type, 72 percent of the bonds were acquired by central banks and official institutions, 8 percent by banks, and 20 percent by fund managers and other types of investors. 

For the 10-year bonds, 27 percent were placed in Asia, 20 percent in EMEA and 53 percent in the Americas. About 47 percent of the bonds went to central banks and official institutions, 11 percent to banks, and 42 percent to fund managers and other investors. 

ADB said it plans to raise around $25-30 billion in the capital markets in 2017, an increase of up to 50 percent on last year. 

Proceeds of the bond issues will be part of the lender’s ordinary capital resources, which most of the bank’s lending firepower comes from, ADB said in a statement. The lender has 180 proposed projects in the pipeline, its website shows, including 40 projects in the energy sector, 36 in transport and 35 in water and urban infrastructure.