News

IDB issues new 5-year global benchmark Sustainable Development Bond

Inter-American Development Bank (IDB) rated Aaa/AAA (Moody’s/S&P) priced its first new CAD benchmark of 2021, a 5-year CAD 750 million global bond that matures on June 29th, 2026. The deal was their largest single-day benchmark in recent history exemplifying their role as one of the more prolific issuers in developing the Canadian market with both the domestic and international investor base.

IDB’s Sustainable Development Bonds raise awareness for their strategic priorities which are aligned to all 17 United Nations Sustainable Development Goals.

The 5-year benchmark pays a semi-annual coupon of 1%, has an issue price of 99.433 and a final spread of +28 bps over the 0.25% CAN March 2026 reference bond, offering investors a yield of 1.117% (semi-annual). Joint lead managers for this transaction are CIBC Capital Markets, National Bank Financial, RBC Capital Markets, and Scotiabank. 

“A great result for our first new CAD transaction of the year! The lack of recent comparable supply and supportive market conditions offered an issuance window. The robust order book and a record number of investors paved the way for our largest CAD benchmark transaction ever.” Said Laura Fan, Head of Funding at the IDB.

Investor Distribution by Investor Type

Investor Distribution by Region

Banks/Bank Treasuries/Corporates

59%

Canada

 

60%

Asset Managers/Insurance/Pension Funds

20%

Americas ex Canada

1%

Central Banks/Official Institutions

21%

Europe/Middle East/Africa       

34%

 

 

Asia

5%

 

Summary Terms:

Issuer:

Inter-American Development Bank (Ticker: IADB)

Issuer rating:

Aaa / AAA (Moody’s / S&P)

Amount:

CAD 750 million

Settlement date:

29 June 2021 (T+10)

Coupon:

Coupon payment dates:

1.00%

29 December and 29 June

Maturity date:

29 June 2026

Issue price:

99.433%

Issue yield:

1.117% s.a.

Reoffer spread (bps):

Mid Swaps -18 / CTCAD5 +28.1bps

Listing:

London Stock Exchange

Clearing systems:

CDS, Euroclear, Clearstream

Joint lead managers:

CIBC Capital Markets / National Bank Financial / RBC Capital Markets / Scotiabank

ISIN / CUSIP:

CA458182EG34

 

Joint Lead Manager Quotes:

“CIBC was honored to work with IDB on this remarkable record-breaking Sustainable Development Bond in the Maple market. This result was a strong testament to IDB’s stellar reception in the Canadian Dollar market, where they have established a strategic niche in terms of providing global investors with liquid and Sustainable investment opportunities.” - Ali Gardezi, Executive Director, Debt Capital Markets, CIBC Capital Markets.

“IDB once again demonstrated its leadership in continuing to develop and cultivate the Canadian SSA market and is recognized as one of its most prolific issuers. IDB continues to satisfy the growing needs of ESG investors while helping to achieve its own stated sustainability mission. Today, IDB was able to issue its largest cad$ benchmark in recent history which is a testament to the value that IDB offers investors globally.” – Scott Graham, Managing Director, Head of USD Government & SSA Finance, National Bank Financial

“IDB’s return to the CAD benchmark market with the IDB’s largest-ever benchmark at the tightest pricing versus mid-swaps in at least a decade was an unqualified success.  Investors have once again demonstrated their clear endorsement of IDB’s Sustainable Development Bond program which has gone from strength to strength since its launch in 2019.” - Jigme Shingsar, Managing Director, RBC Capital Markets.

“Scotiabank is proud to support the IDB’s 5-year CAD 750mm Sustainable Development Bond, its largest single Global Benchmark transaction in Canadian Dollars to date, and it's second in 2021. With this transaction, the IDB refreshed its presence in the currency in a key tenor, and reinforced its commitment to the Canadian Dollar market as a strategic currency of its funding program. The issue, which supports IDB’s efforts to promote sustainable, climate-friendly economic and social development in Latin America & the Caribbean, received strong sponsorship from both the domestic and international ESG investment community, thus cementing the recognition of the IDB in an increasingly important market for Sustainable issuance,” - Cesare Roselli, Global Head of SSA Origination at Scotiabank.

About the IDB

The Inter-American Development Bank is a leading source of long-term financing for economic, social, and institutional projects in Latin America and the Caribbean. Besides loans, grants and guarantees, the IDB conducts cutting-edge research to offer innovative and sustainable solutions to our region’s most pressing challenges. Founded in 1959 to help accelerate progress in its developing member countries, the IDB continues to work every day to improve lives.

*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.