IDB launches $2 billion five-year USD Global Benchmark bond
/ Our Today
administrator
Washington DC-based multilateral the Inter-American Development Bank (IDB) has priced a new US$2 billion five-year USD Global benchmark.
The bond pays a semi-annual coupon of 3.750 per cent and matures on June 14, 2030.
The transaction was priced at 44 basis points over SOFR mid-swaps, equivalent to 8.4 basis points above 3.875 per cent United States Treasury due April 30, 2030. Strong demand from global investors seeking high-quality, liquid investments drove final order books to over US$2.6 billion.
“We are pleased with our second five-year benchmark of the year,” said Laura Fan, head of funding at the IDB. “Strong demand led to a widely distributed US$2 billion issuance and demonstrates investor support for the IDB’s mission to promote development across Latin America and the Caribbean.”
Investor distribution:
| Geographic region | Investor type | ||
| Americas | 37 per cent | Banks | 51 per cent |
| Europe, Middle East and Africa | 36 per cent | Central Banks and Official Institutions | 42 per cent |
| Asia and Pacific | 27 per cent | Asset Managers | 7.0 per cent |
| Pension Funds, Insurance and Corp. | <1.0 per cent | ||
Bond summary terms:
| Issuer: | Inter-American Development Bank |
| Issuer rating: | Aaa / AAA (Moody’s/S&P) |
| Amount: | US$2 billion |
| Settlement date: | May 7, 2025 (T+5) |
| Coupon: | 3.750 per cent |
| Coupon payment dates: | June 14 and December 14 (semi-annually) |
| Maturity date: | June 14, 2030 |
| Issue price: | 99.665 per cent |
| Issue yield: | 3.822 per cent semi-annual |
| Reoffer spread (bps): | SOFR MS+44 / UST UST 3.875% 04/30 + 8.4bps |
| Listing: | London Stock Exchange’s Regulated Market |
| Clearing systems: | Fedwire, Euroclear, Clearstream |
| Joint lead managers: | HSBC, J.P. Morgan, RBC Capital Markets, Scotiabank |
| Co-lead managers: | Barclays, BMO, BNP, BoAML, Citi, Deutsche Bank, Morgan Stanley, NatWest, Nomura, Wells Fargo |
| ISIN: | US4581X0EV68 |
“Congratulations to the IDB team on the successful execution of their new five-year benchmark, despite the recent bout of volatility. IDB took advantage of the improved market sentiment, moving swiftly to announce their second five-year benchmark of 2025. The high-quality order book underscores investor support of the IDB credit. HSBC are delighted to have been involved in the transaction.” Asif Sherani, head of DCM Syndicate and head of public sector DCM, HSBC
“IDB moved quickly to take advantage of a return to more stable underlying markets and a positive primary market tone, and was well-rewarded with a high-quality transaction that priced at their tightest US Treasury spread in the five-year tenor since January 2022. This transaction reflects IDB’s proactive approach in navigating challenging market conditions, supported by its loyal investor base.” Sarah Lovedee, head of supranational DCM, J.P. Morgan
“A nimble IDB took advantage of an unexpectedly strong market tone to return to the market with their second successful five-year. With the program well-funded and ahead of schedule, they were able to prioritise pricing and investor distribution over size with a US$2 billion issue size. It was especially gratifying to the results of recent investor marketing efforts with some key high-quality accounts supporting this issue in size.” Jigme Shingsar, managing director, RBC Capital Markets
“Scotiabank congratulates the IDB on its second USD-denominated transaction of 2025: a highly successful SEC Global Issue. The quality of the orderbook is a testament to investor demand for the IDB name, strategic issuance timing, and thoughtful pricing decisions during the book-build process. Scotiabank is pleased to be involved on such an important issuance,” Cesare Roselli, global head of SSA (sovereign, supranational, and agency) origination at Scotiabank.
Comments