News

IDB Launches NZD 375 Million 3.00% 5-year Fixed Rate Kauri

The Inter-American Development Bank (“IADB” or “IDB”), rated Aaa/AAA (Moody’s/S&P), priced a new NZD 375 million 5-year Kauri bond offering.

The transaction pays a semi-annual coupon of 3.000% and matures on January 25, 2023. It priced with a spread of 34 basis points over New Zealand dollar Mid-Swaps, which represents a yield of 3.058% s.a.

The transaction marks IDB’s first NZD fixed-rate Kauri of 2018, their largest Kauri debt offering ever. The IDB now has NZD 850 million of Kauri debt outstanding among three lines. Despite a busy NZD market, the IDB was able to take advantage of healthy demand for Kauri 5-year debt. The orderbook closed with demand approaching NZD 400 million from more than 15 high-quality accounts, allowing the deal to be upsized to NZD 375 million from the launch volume of NZD 200 million.

“The strong demand from domestic investors allowed us to print our largest Kauri deal ever,” said IDB Head of Funding Laura Fan. “We saw new investors participate in this bond and are generally pleased with the overall geographical and investor type distribution.  It is a great start to the year.”

Investor Distribution

By Region

By Investor Type

New Zealand

66%

 

Banks

71%

Asia

19%

 

Central Banks / Official Institutions

19%

Europe

12%

 

Asset Managers

10%

US

3%

     

Bond Summary Terms

 

Issuer:

Inter-American Development Bank (Ticker IADB)

Issuer rating:

Aaa / AAA (Moody’s / S&P)

Amount:

USD 375 million

Settlement date:

25 January 2018

Coupon:

Coupon payment dates:

3.000%

25 January and 25 July (semi-annual)

Maturity date:

25 January 2023

Issue price:

99.732967%

Issue yield:

3.058% s.a.

Reoffer spread:

Mid-Swaps + 34 bps

Listing:

No Listing

Clearing systems:

NZClear

Joint lead managers:

ANZ, Commonwealth Bank of Australia, TD Securities

ISIN/CUSIP:

NZIDBDT005C0

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.

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