Post on 06-Jun-2020
Supranationals - non-Europe
242 EuroWeek Financing supranationals and agencies
Asian Development Bank (ADB)Rating Aaa, AAA, AAA
Haruhiko Kuroda President
Bindu N Lohani Vice-president (finance & administration)
Mikio Kashiwagi Treasurer
Kazuki Fukunaga Assistant treasurer, funding division
Key oFFiciaLs
The Asian Development Bank (ADB) is a multilateral development bank in the Asia-Pacific region. Founded in 1966 and based in Manila, ADB is owned and financed by its 67 members, of which 48 are from the region and 19 are from other parts of the world.
ADB’s main partners are governments, the private sector, non-government organisations, development agencies, community-based organisations, and foundations.
Although most lending is in the public sector — and to governments — ADB also provides direct assistance to private enterprises of developing countries through equity investments, guarantees, and loans.
overview
Source: ADB (medium & long-term borrowings)
$ bn
0
1
2
3
4
5
6
2005
2004
2006
2007
2008
2009
issuaNce - private pLaceMeNt
Source: ADB
$ bn
- 5.00
10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00
31 D
ec 0
6
31 D
ec 0
7
31 D
ec 0
8
31 D
ec 0
9
outstaNdiNg deBt
*Includes AUS, CAD, EUR, HKD, NZD, GBP, CHG. Data at December 31, 2009. Source: ADB
USD 54%
JPY 8%
Other* 38%
outstaNdiNg issuaNce By curreNcy
Data at June 30, 2010. Source: ADB
$ bn
0 1 2 3 4 5 6 7 8 9
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
+
outstaNdiNg BorrowiNgs By Maturity
Source: ADB
$ bn
Public offerings7.7
Private placement
2.7
Short term funding0.34
issuaNce By type (2009)
Source: Euroweek
Central banks / official
institutions 52% Banks
28%
Fund managers 16%
Other 4%
iNvestor Base By type$2.75BN 5yr FeB 2011
Source: Euroweek
Asia 35%
EMEA 35%
Americas 30%
iNvestor Base By regioN$2.75BN 5yr FeB 2011
Supranationals - non-Europe
Financing supranationals and agencies EuroWeek 243
structuresFX-linked: dual currency note, reverse dual currency note, PRDC, chooser PRDC, digital coupon, TARN
Interest rate-linked: inverse floater, CMS-linked, callable FRN
Others: fixed rate note, zero coupon callable, Uridashi (straight or deep discount), Samurai (structured)
currencies Includes RMB, PHP, HKD, MYR, SGD, THB, INR
private pLaceMeNt poLicy
Source: ADB
$ bn
0
20
40
60
80
100
120
31 D
ec 0
8
31 D
ec 0
9
30 Ju
n 10
totaL assets
Data at December 31, 2009. Source: ADB
$ bn
Vietnam2.27
Indonesia2.24
China2.01
India1.87
Philippines1.19
Bangladesh 1.10
Pakistan 0.94
Kazakhstan 0.69 Sri Lanka 0.35 Nepal 0.35 Regional 1.09
Others1.98
LoaNs By regioN (2009)
Data at December 31, 2009. Source: ADB
$ bnAgriculture & natural
resources0.44
Education0.09
Energy2.13
Finance 0.51
Health & social protection
0.09
Industry & trade 0.10
Public sector management
5.31
Transport & ICT2.35
Water supply & other municipal infrastructure &
services0.81
Multisector1.41
LoaNs By sector (2009)
rank Lead Manager amount $m No of issues
% share
1Daiwa Capital Markets
2,348 10 17.01
2 Goldman Sachs 1,928 3 13.97
3RBC Capital Markets
1,797 12 13.02
4 UBS 1,444 4 10.46
5 Morgan Stanley 1,245 2 9.02
6 HSBC 1,069 10 7.75
7 JPMorgan 887 8 6.43
8 ANZ 695 3 5.03
9 TD Securities Inc 599 9 4.34
10Bank of America Merrill Lynch
496 1 3.6
subtotal 12,509 47 90.63
total 13,803 63 100
Source: Dealogic (March 16, 2010 to March 15, 2011)
top BooKruNNers
pricing date February 14, 2011
value $2.75bn
Maturity date March 15, 2016
coupon 2.5%
spread to benchmark 24.65bp over USTs
Bookrunners Goldman Sachs, HSBC, JPMorgan, RBC Capital Markets
pricing date February 10, 2011
value A$700m
Maturity date February 22, 2018
coupon 6%
spread to swaps 23bp
Bookrunners ANZ, Commonwealth Bank of Australia, RBC Capital Markets
pricing date January 11, 2011
value A$1bn
Maturity date February 15, 2016
coupon 5.5%
spread to benchmark 68bp over ACGBs
Bookrunners ANZ, RBC Capital Markets, Westpac
Source: Dealogic
receNt deaLs
standard & poor’s
AAA, stable outlook
strengths•Conservativefinancialpolicies•Healthyfinancialprofile•Strongshareholders’support
weaknesses•Inherentcreditriskasamultilateralfinancial
agency lending to countries with relatively low sovereign credit ratings
The outlook is stable. The ratings and stable outlook assume that the bank’s major borrowers will continue to treat ADB as a preferred creditor and that the bank will continue to execute its mission effectively, earning the continued financial support of its shareholders. The ratings could come under pressure if ADB’s preferred creditor status weakens and financial support from shareholders wanes, although S&P views the likelihood of that happening as remote.
Key receNt ratiNg ageNcy coMMeNtary
Fitch
AAA, outlook stable
The ratings of the Asian Development Bank (ADB) are based on the high credit standing of its non-borrowing shareholders, its comfortable capitalisation and its conservative financial policies. The ADB’s capital was shared among 67 member countries at end-2009: regional member countries held 66.6% of capital and non-regional OECD member countries the rest. Only a portion (6.8%) of the capital has been paid in; the rest may be called if needed. Given the high credit standing of shareholders (15 were rated AAA at end-2009), Fitch believes support would be granted if needed. In the medium term, however, shareholders’ support could weaken due to financial difficulties of some non-regional countries. The ADB’s rating outlook is stable. Downward pressure on the rating could arise from a weakening in shareholders’ support, more accommodating risk management policies and a substantial exposure to private-sector operations. Fitch deems those changes unlikely in the short term.
Key receNt ratiNg ageNcy coMMeNtary