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USA | Jan 12, 2025

IDB launches US$4.25 billion Global Sustainable Development Bond benchmark

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Inter-American Development Bank headquarters at Washington, D.C.

The Inter-American Development Bank (IDB), priced a new US$4.25 billion, five-year Global Sustainable Development Bond benchmark.

The transaction pays a semi-annual coupon of 4.500 per cent and matures on February 15, 2030. It was priced with a spread of 42 basis points over SOFR mid-swaps, equivalent to +12.18 basis points over 4.375 per cent United States Treasury due December 31, 2029. The bond carries a semi-annual yield of 4.569 per cent. 

Final order books exceeded US$10.4 billion from 155 participating accounts. The broad and global distribution of this transaction reaffirms IDB’s support within the global investor community.

“We are delighted with the transaction as it attracted our largest-ever USD global benchmark bond order book and investor participation,” said Laura Fan, IDB head of funding. “The strong demand for the five-year maturity allowed us to issue a larger size than originally planned.  It is a great start to the year, and we will continue building our USD global benchmark curve in 2025.”

Investor distribution:

Geographic RegionInvestor Type 
Europe, Middle East and Africa47%Central banks and official institutions30%
Americas23%Banks54%
Asia and Pacific29%Asset managers15%
  Pension funds, insurance and corporations<1%

Bond Summary Terms:

Issuer:Inter-American Development Bank (Ticker: IADB)
Issuer rating:Aaa / AAA (Moody’s / S&P)
Amount:US$4.25 billion
Settlement date:January 16, 2024 (T+6)
Coupon:4.500%
Coupon payment dates:February 15 and August 15 (semi-annually, long first)
Maturity date:February 15, 2030
Issue price:99.686%
Issue yield:4.569% semi-annual
Reoffer spread (bps):SOFR MS+42 / UST 4.375% 12/29 + 12.18 bps
Listing:London Stock Exchange’s Regulated Market
Clearing systems:Fedwire, Euroclear, Clearstream
Joint lead managers:BMO Capital Markets, BofA Securities, Citi, Wells Fargo Securities
Co-lead managers:Barclays, BNP Paribus, CIBC, Deutsche Bank, J.P. Morgan, Morgan Stanley, Nomura, RBC Capital Markets, Scotiabank
ISIN:US4581X0ES30

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