ADB issuing 5-billion peso bond in Philippines

May. 22, 2007

MANILA, PHILIPPINES – ADB returned to the Philippine bond market today with the pricing of its second Philippine Peso denominated bond issue.

This second issue follows ADBs successful opening of the Philippine bond market to foreign issuers in October 2005 when ADB issued the first Peso-denominated bonds by a foreign issuer in the country.

This bond issue is another milestone in ADB’s commitment to develop regional bond markets, says ADB Treasurer Mikio Kashiwagi. It accentuates ADB’s confidence in the Philippine capital markets and we are very grateful for the support of the Philippine authorities in making this transaction possible.

Since early 2004, ADB has completed market-opening transactions in the region’s local currency bond markets, including India, Malaysia, Peoples Republic of China, and Thailand. The proceeds of this issue will be part of ADB’s ordinary capital resources and will be used in its non-concessional operations.

With a principal amount of 5 billion pesos and a bullet maturity of five years and one day, the ADB peso bonds carry a fixed rate of 5.23% per annum and are priced at 85% of the five-year Philippine Government Security. The joint lead arrangers and bookrunners for the issue were First Metro Investment and Standard Chartered Bank Philippines.

Offered through a bookbuilding process, the issue was launched on 21 May 2007 after an extensive roadshow with local institutional investors. The transaction was oversubscribed and achieved a broad distribution with institutional investors in the Philippines including banks, pension funds, insurance companies, fund management companies, and trust departments.

Francisco C. Sebastian, First Metro Investment President says the transaction strengthens First Metro Investments relationship with ADB and institutional investors. First Metro Investment is pleased to be chosen as the first local financial institution to have arranged this landmark deal, which is in line with our companys vision to be a prime mover in the development of the Philippine capital markets. he said. Also, we are delighted to partner with Standard Chartered Bank, whom we have closely worked with in the past.

Eugene Ellis, Chief Executive Officer of Standard Chartered Bank, adds that the deal is an exceptional one for Standard Chartered in the Philippines. We are honored to once again support ADBs leadership in the Asian local currency bond markets, together with First Metro Investment, said Mr. Ellis. The Philippine issue follows our successful placement of ADB bonds in the Thai, Malaysian, and Singaporean markets over the last 12 months. These transactions demonstrate our capability in supporting issuance by regional and global issuers like the ADB in the regional bond markets.

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