Frequently Asked Questions (FAQ)
- Are IADB debt instruments fully backed by the shareholders?
- What is the typical size of your debt issuance program?
- What currencies, sizes and maturities does IADB typically issue?
- Do you issue-short term instruments regularly?
- Where are IADB debt instruments traded? Are they listed on an exchange?
- What is the tax status of IADB debt instruments?
- Does IADB target Socially Responsible Investors?
IADB debt instruments are not direct obligations of any IADB shareholder. However, all IADB debt instruments are backed by the callable capital of the highly rated non-borrowing shareholders. By policy, IADB limits its net borrowings to the callable capital stock of its non-borrowing shareholders. See the Investor Presentation for more details on the shareholder structure of the bank.
The IADB debt issuance program runs from January to December (calendar year) and the size is dependent on the expectations of loan disbursements, debt redemptions and desired liquidity levels. In the past 5 years, the debt issuance program ranged from USD 5.3 billion to USD 16.2 billion and it is expected that the program for future years be around USD 10 billion.
IADB issues in a wide range of currencies including US Dollar, Australian Dollar, Pound Sterling, Swiss Franc, Euro, Japanese Yen and Canadian Dollar. IADB also issues in emerging market currencies including Latin American currencies. Additional currencies can also be considered based on investor demand. Issuance sizes vary from less than USD 5 million to up to USD 3 billion. The typical maturity of IADB debt instruments ranges from a minimum of 1 year up to 30 years. See the Investor Presentation for more details on the debt issuance program and currencies issued.
IADB issues short-term instruments with maturities ranging from overnight to 360 days through its Discount Note Program. Discount notes are denominated in US Dollars and are offered through participating dealers in the Program. The availability of offers is conditional to IADB short-term cash needs. See the Discount Note Program One-Pager for additional information on IADB discount notes.
The primary sale of IADB debt instruments is done through banks, dealers and brokers acting as underwriters of IADB issues. IADB debt instruments can be listed on a securities exchange, if requested. The vast majority of listed IADB debt instruments are listed on the London Stock Exchange.
IADB debt instruments are subject to taxation in accordance with tax laws applicable to the bondholders. Investors should seek expert advice from their tax counsel regarding applicable tax laws.
The purpose of IADB is to further the economic and social development of Latin America and the Caribbean by promoting environmentally sustainable growth, as well as poverty reduction and social equity. As such, IADB bonds are an important investment alternative for institutions with sustainable and socially responsible investment strategies. In addition, IADB has targeted investors seeking to support one of the core missions of the Bank with its inaugural “Poverty Reduction Bond” issued in July 2010. The proceeds raised through this bond shall foster poverty reduction goals supported by IADB.