IDB Invest, the private sector arm of the IDB Group, has raised £300 million in funding for investments in the private sector in Latin America and the Caribbean (LAC).

The IDB has issued its inaugural £300 million short 5-year Social Benchmark Bond under its Global Debt Program. This is IDB Invest’s first sterling-denominated issuance, providing sterling investors the unique opportunity to invest in the private sector in LAC through this supranational bond. 

Demand in the security sector was robust, with over 20 buyers submitting orders exceeding £525 million. Banks accounted for the largest share of the allocation at 40%, followed by central banks and official institutions at 28%. Fund managers took 22%, pension funds 5%, and the remaining 5% was placed with insurance companies.

UK domination of the take-up

The transaction saw strong participation from the United Kingdom, which accounted for 58% of the allocation. The remainder was well diversified across Europe, the Middle East and Africa (EMEA, 22%), Asia (11%), and the Americas (8%). The bond, maturing on October 22, 2030, pays an annual coupon of 4.125% and was priced at SONIA mid-swaps +45 basis points, representing a yield of 4.198% and a spread of 25.3 basis points versus the 0.375% October 2030 Gilt. 

BMO Capital Markets, Citi, NatWest, and TD Securities acted as joint bookrunners. The success of the syndication underscores IDB Invest’s credit strength, track record and mandate as the leading development bank committed to increasing development impact in Latin America and the Caribbean through the private sector.

CFO of IDB Invest, Orlando Ferreira was excited at the strong take-up, saying, “This inaugural sterling transaction marks an important milestone for IDB Invest as we continue diversifying our funding base to better serve Latin America and the Caribbean. The strong demand from high‑quality investors reflects confidence in our credit strength and our mandate to deliver meaningful development impact through the private sector. We are pleased to open a new channel for English investors to participate in the region’s growth story.”

Head of International Sovereign, Sub-sovereign and Agency (SSA) at BMO Capital Markets, Massimo Antonelli commented, “Congratulations to IDB Invest on a very successful debut in the GBP market.  The inaugural thematic benchmark establishes IDB Invest in the sterling market, with more than GBP 500 million in demand from a global investor base eager to support the important social and sustainability activities of IDB Invest. We are proud to have been involved in this historic outcome.”

For his part, Head of SSA at Citi also had a congratulatory message: “Congratulations to the IDB Invest team on their inaugural Sterling transaction. This new benchmark represents an important milestone in IDB Invest’s continued growth in the capital markets and follows the addition of the United Kingdom as its 48th member country. By entering the Sterling market, IDB Invest broadens its investor reach and further strengthens its ability to scale its impact in the years ahead.” 

“Congratulations to the IDB Invest team on a highly successful debut in sterling. Opening a new strategic currency is an important milestone and today’s outcome demonstrates the depth of support for IDB Invest among global investors. The transaction not only reflects favourable market conditions but also reinforces the institution’s growing presence across key funding markets. We are proud to have been involved at NatWest” remarked Damien Carde, Head of SSA DCM, NatWest.

IDB Invest finances sustainable companies and projects to achieve financial results and maximise economic, social, and environmental development in the region. With a portfolio of $22 billion in assets under management and more than 440 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.