IDB Complements Sterling Curve with New 5-Year Sustainable Development Bond

The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new £500 million long 5-year July 2027 Fixed Rate Sustainable Development Bond.

The transaction pays an annual coupon of 2.500% and matures on 22nd July 2027. It was priced with a spread of 68 basis points over the UKT 1.250% July 2027 and carries a semi-annual yield of 2.552%.

The IDB last launched a new benchmark line in April 2022, and this transaction is the IDB’s third Sustainable Development Bond benchmark in the Sterling market. IDB demonstrated its deep reach in the Sterling market despite continued volatility and political headlines.

Taking advantage of a clear issuance window, the IDB successfully launched a new £500 million line to complement its outstanding curve in the Sterling market and diversify into new pockets of demand. The final orderbook in excess of £560 million is testament to IDB’s quality investment offering to investors.

The new GBP Sustainable Development Bond was met with a strong response from U.K. based investors receiving over two thirds of the allocation led by asset managers/insurance and pension funds who got allocated 52% of the transaction followed by banks (29%) and central banks/official institutions (19%).

“We are delighted to offer Sterling investors an opportunity to support our sustainable development projects in the Latin American and Caribbean region at an attractive spread over UK government bonds. For this third outing in the GBP primary markets in Sustainable Development Bond format, we identified an unexplored maturity which coincidentally filled a gap in our GBP curve. The strong ESG investor participation and quality of the order book allowed us to upsize the trade.” Laura Fan, Head of Funding, IDB

Investor Distribution:

Geographic Region

Investor Type





















Bond Summary Terms:


Inter-American Development Bank (Ticker: IADB)

Issuer rating:

Aaa / AAA (Moody’s / S&P)


GBP 500 million

Settlement date:

17 June 2022 (T+7)



Coupon payment dates:

22nd July (annually)

Maturity date:

22nd July 2027

Reoffer price:


Reoffer yield:

2.552% s.a.

Reoffer spread (bps):

UKT 1.25% July 2027 + 68bps


London Stock Exchange

Clearing systems:

Euroclear, Clearstream

Joint lead managers:

BofA Securities, Deutsche Bank, NatWest Markets and RBC Capital Markets




Joint Lead Manager Quotes:

“Congratulations once again to the IDB team on a second successful return sterling market! A quick reaction to stable market conditions and attractive cost of funding was met with broad demand from high quality accounts allowing the issuer to upsize to £500m. BofA is proud to be involved.” Kamini Sumra, Managing Director, SSA DCM Origination, BofA Securities.

“Congratulations to the IDB team for a successful Sustainable Development Bond in the Sterling market. Complementing its curve with a new long 5-year allows IDB to continue building on its presence in this strategic market whilst offering investors an attractive investment opportunity. Once again, the IDB took advantage of a favourable window to react to upbeat investor demand to place a new Sustainable Development Bond with high quality investors. Deutsche Bank is proud to have accompanied the IDB on this offering.” Pieter van Blommestein, SSA DCM Origination, Deutsche Bank.

“We’re delighted to have been able to support IADB in their third Sustainable Development Bond in the Sterling market. After the impressive reception we witnessed on their inaugural Sterling SDB in 2019, today’s strong result exemplifies the further growing investor support for the issuer and their dedication to the SDB market expansion. After what has been a challenging backdrop for Sterling transactions, IADB successfully identified a supportive window to secure a strong outcome, supported by a high quality orderbook.” Kerr Finlayson, Head of FBG Syndicate, NatWest Markets.

“A strong outing in the sterling market for IADB, with a new £500m Sustainable Development Bond. Responding to more favourable market conditions, the IADB’s nimbleness and quick reaction was met with quality demand from the top accounts. The successful outcome of the new reference point highlights IADB’s strong fundamentals and its ongoing support not only from global investors, but equally the UK investor community. RBC Capital Markets is proud to have been involved in this Sustainable Development Bond.” Stuart McGregor, Managing Director, RBC Capital Markets.

About the IDB

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.

Information on bonds for Investors is available on the IDB website:

*This press release is not an offer for sale of the securities of the Inter-American Development Bank. Any offering of IDB securities will be made only by means of a prospectus or other definitive offering document that contains important information about the securities, the offering and IDB. Offerings of securities will be made only in compliance with applicable laws.