IDB launches $3.75 billion 2.50% 5-year fixed-rate global

The Inter-American Development Bank (“IADB” or “IDB”), rated Aaa/AAA (Moody’s), priced a new $3.75 billion 5-year global bond.

The transaction pays a semi-annual coupon of 2.500% and matures on January 18, 2023. It priced with a spread of 15.7 basis points over the 2.125% UST due December 31, 2022, which represents a yield of 2.500% s.a.

The transaction marks IDB’s first US dollar fixed-rate benchmark of 2018. Similar to years past, the Bank started its funding program with a US dollar 5-year global benchmark. At $3.75 billion, the deal stands as the IDB’s largest US dollar 5-year benchmark and matches its largest US dollar bond. Despite a busy primary calendar, the credit quality of the IDB was evident, as orders exceeded $5.2 billion among more than 100 investors.

“The typical strong demand in January propelled us to a bond issuance that hit many milestones—it is our largest 5-year primary US dollar global benchmark; our largest 5-year order book; and a record number of investors for a 5-year bond. We usually issue $3 billion benchmarks in this maturity and so we are very pleased with the result,” said Laura Fan, Head of Funding at the IDB.

Investor Distribution

By Geographic area

By Investor Type






Europe, Middle East & Africa



Central Banks/Official Institutions


Asia & Pacific



Asset Managers



Pension Funds/Insurance/Corporate


Bond Summary Terms


Inter-American Development Bank (Ticker IADB)

Issuer rating:

Aaa / AAA (Moody’s / S&P)


USD 3.75 billion

Settlement date:

18 January 2018 (T+5)


Coupon payment dates:


18 January and 18 July (semi-annual)

Maturity date:

18 January 2023

Issue price:


Issue yield:

2.500% s.a.

Reoffer spread:

Mid-Swaps + 11 bps / CT5 + 15.7 bps


London Stock Exchange

Clearing systems:

Fedwire, Euroclear, Clearstream

Joint lead managers:

BofA Merrill Lynch, BMO Capital Markets, RBC Capital Markets, TD Securities

Co-lead managers:

BNP Paribas, Citibank, Deutsche, Goldman, HSBC, JPM, Mizuho, Nomura, NatWest, Wells Fargo


4581X0DA3 / US4581X0DA31


About the Inter-American Development Bank

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-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.