IDB issues a new 5-year fixed-rate global benchmark transaction

The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new $ 4.25 billion 5-year fixed-rate global benchmark.

The transaction pays a semi-annual coupon of 0.875% and matures on April 20, 2026. It was priced with a spread of 10.5 basis points over the 0.750% UST due 31 March 2026, which translates to a semi-annual yield of 0.969%.

The transaction is IDB’s second benchmark of 2021 across all currencies and represents IDB’s first 5-year benchmark in over a year. At $ 4.25 billion, the trade stands as IDB’s largest-ever USD 5-year fixed-rate benchmark.

“Favorable market conditions generated strong investor interest for our second foray in the USD global benchmark market.  The high-quality order book allowed us to print our largest ever 5-year USD global benchmark.  We are pleased with the excellent outcome!” said Laura Fan, Head of Funding at the IDB.

Investor Distribution:

Bond Summary Terms:

Joint Lead Manager Quotes:

“Huge congratulations to the IDB team for issuing their largest ever 5-year transaction amid an extremely busy period in primary markets. Their timing allowed the team to capture both tight pricing and significant size for their second fixed-rate benchmark of 2021. This transaction proves again the broad following the issuer has developed across high-quality investors globally from Central Banks, Official Institutions, Treasuries and Asset Managers.” Robert Matthews, SSA DCM at BNP Paribas.

“This transaction exceeded expectations and yielded a spectacular result for IDB. Taking advantage of strong market conditions at the beginning of Q2, IDB managed to achieve their largest benchmark in 5yr at $4.25bn, while also printing the tightest transaction in that maturity in the SSA space since 2015. Many congratulations to the IDB team for their impeccable timing and market read, allowing them to achieve such a fantastic trade.” Maud Le Moine, Head of SSA DCM at Goldman Sachs.

“IDB seized the clear issuance window and supportive market conditions amid the post-Easter funding wave to bring an impressive $4.25bn 5-year global benchmark at mid-swap flat – the tightest 5-year reoffer mid-swap spread for any SSA issuer since 2015.  The high quality and diversity of the order book is a testament to the issuer’s solid credit quality and name recognition globally.  J.P. Morgan is delighted to have been involved in the transaction!” Keith Price, Head of Frequent Borrower Group, J.P. Morgan.

"A truly remarkable result for the IDB with this foray in the USD benchmark market, having achieved the tightest priced 5-year benchmark in six years. The size achieved is also truly impressive, matching the largest ever 5-year printed by IDB. An all-round fantastic outcome for the issuer, which propels them ahead in the completion of their funding program for the year.” Ben Adubi, Head of SSA Syndicate at Morgan Stanley.