ADB Issues Second Gender Bond Denominated in Azerbaijan Manat

MANILA, PHILIPPINES (29 January 2024) — The Asian Development Bank (ADB) has raised 19.5 million Azerbaijan manat (about $11.5 million) through the issuance of its second gender bond in this South Caucasus currency.

The issue is structured as a 3-year currency-linked bond, with a sinking fund to mirror the amortizing terms of an underlying loan that seeks to expand access to credit for women and agricultural workers.

The bond is denominated in Azerbaijan manat but settled in United States dollars, which makes it easier to crowd-in international investors.

The bond pays a semi-annual coupon of 6.50% per year and is listed on the Luxembourg Stock Exchange. It was arranged by Merrill Lynch International and was subscribed by a single European investor.

“International investor demand for local currency bonds plays a key role in ADB’s mobilization of financial resources for local currency operations in our developing member countries, as we seek to broaden the currency mix of our borrowing program,” said ADB Assistant Treasurer Maria Lomotan.  

This is ADB’s third Azerbaijan manat-denominated bond issue and its first local currency bond of 2024. In 2023, ADB issued 12 local currency bonds in Azerbaijan manat, Chinese renminbi, Georgian lari, Kazakhstan tenge, and Mongolian togrog.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.