THE ASIAN Development Bank (ADB) is to launch its keenly awaited superliquid bond toward the middle of next week, if market conditions stabilise. Led by Nomura International, Morgan Stanley Dean Witter and SBC Warburg Dillon Read, the deal is emerging as a roughly $3bn global bond with a likely maturity of five years. In the face of difficulties marketing Asian-linked credits and a wide spread differential between the bank's most recent 10 year deal and comparable supranational credits, Asian support is rapidly coming into focus as the likely platform for the deal. Bankers said that the deal has already garnered strong demand from the region. Asian central banks provide an obvious home for the ADB's paper, both on grounds of the bank's triple-A rating and the role the supranational is expected to play in the region's recovery from economic turmoil. Whether that buyer universe will prove large enough to allow the ADB to meet its funding targets remains uncertain.
May 08, 1998