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ADB issues $2.5 bn bonds in US market

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Press Trust of India Manila/New Delhi
Last Updated : Jan 21 2013 | 1:47 AM IST

The Asian Development Bank (ADB) has issued $2.5 billion-bonds in the US market to boost its capital resources.

The bond sale is part of the multilateral lending agency's plan to raise $15 billion in 2010.

In a statement today, ADB said the proceeds from the $2.5 billion five-year bond issue would help in bolstering the bank's ordinary capital resources and would be used for "non- concessional operations".

These bonds would have a coupon rate of 2.625 per annum and a maturity date of February 9, 2015.

ADB noted that it plans to raise around $15 billion in 2010.

The deal is also ADB's first global issue in the US dollar bond market since May 2009. At that time also, the bank had issued bonds with a five-year maturity.

"We are very pleased with the size and sponsorship of the transaction, which reflects ADB's core funding strategy of maintaining a strong presence in key currency bond markets through regular issuance of liquid benchmark global bonds," ADB Treasurer Mikio Kashiwagi said.

The transaction was lead-managed by Bank of America Merrill Lynch, Morgan Stanley, RBC Capital Markets and UBS.

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First Published: Feb 03 2010 | 5:23 PM IST

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