ADB raises Us$4bil to counter pandemic

MANILA: The Asian Development Bank (ADB) said yesterday it had raised Us$4bil through the sale of Us-dollar bonds to beef up its capital and provide more assistance to countries impacted by the pandemic.

The Manila-based lender has tripled the size of its rescue package to Us$20bil to help developing countries in Asia counter the severe macroeconomic and health effects of the coronavirus pandemic.

“This gives us the resources to continue to provide much-needed assistance to the Asia and Pacific region, particularly during this pandemic,” ADB treasurer Pierre Van Peteghem said in a statement. ADB said the three-year bond fetched a coupon rate of 0.25% and was priced to yield 12 basis points over the 0.25% on US Treasury notes.

ADB plans to raise around Us$30bil to Us$35bil from the capital markets in 2020.

Global economic losses caused by the coronavirus pandemic could be between US$5.8 trillion and US$8.8 trillion this year, ADB data showed, with developing Asia’s gross domestic product seen barely growing this year.

ADB assists its members, and partners, by providing loans, technical assistance, grants, and equity investments to promote social and economic development.

It maximises the development impact of its assistance by facilitating policy dialogues, providing advisory services, and mobilising financial resources through cofinancing operations that tap official, commercial, and export credit sources.

“This gives us the resources to provide much-needed assistance.” Pierre Van Peteghem