News Releases

Jun 15, 2017

IDB launches $600 million 5-Year Floating Rate Note

The Inter-American Development Bank(“IADB” or “IDB”), rated Aaa/AAA (Moody’s/S&P), priced a new $600 million 5-year global floating rate note.

The transaction pays a quarterly floating rate coupon of 3 month USD LIBOR + 7 bps and matures on July 15, 2022.

This transaction is the IDB’s first floating rate benchmark transaction of 2017, and is the second largest floating rate transaction for any US-member supranational this year. The new July 2022 Floating Rate Note adds a new liquid reference point in the 5-year part of IDB’s curve complementing and extends the maturity profile.

The size of the transaction, originally announced as $500 million, was increased to $600 million on the back of an oversubscribed order book. There was strong investor demand with 25 accounts participating across a broad geographic spectrum and well-diversified investor base. The strength of the order book was underscored by the high participation from North American fund managers and Official Institutions, and selected Central Banks.

Investor Distribution:

By Region

 

By InvestorType

 

EMEA 

  45%  

Asset Managers

 18%

Americas

  55%

Banks

 36%

 

 

Central Banks/ Official Institutions

 45%

 

 

Pension Funds / Insurance / Corp

 1%

Information on bonds for investors is available on the IDB web site at http://www.iadb.org/investors.

Bond Summary Terms:

Issuer:

Inter-American Development Bank (TickerIADB)

Issuerrating:

Aaa/AAA (Moody’s /S&P)

Format

Global SEC Exempt

Amount:

USD600 million

Settlementdate:

20 June 2017 (T+5)

Coupon:

3m$L + 7bps, Act/360 (short first to 15 Jul 17)

Couponpaymentdates:

Quarterly on 15 January, April, July, and October each year, with a short first coupon payment on 15 July 2017, up to and including the Maturity Date. The short first coupon will be calculated using an interpolation between 1W and 1M LIBOR

3mo USD LIBOR Definition:

3 Month USD LIBOR will fix two London Business Days prior to the Coupon Payment Period Reference Reuters Page LIBOR01

Maturitydate:

15 July 2022 (5 year)

Issue price:

100.00%

Redemption Price:

100% (Par)

Governing Law:

New York

Business Day:

New York, London

Listing:

London Stock Exchange’s Regulated Market

Clearing systems:

DTC, Euroclear, Clearstream

Calculation Agent:

Citibank

Jointleadmanagers:

BMO Capital Markets, Citi, Wells Fargo Securities

ISIN / CUISIP:

45818WBP0 / US45818WBP05

About the IDB

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source oflong-term financing for economic, social and institutional development in Latin America and the Caribbean.The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.

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