IDB issues new Climate Action Sustainable Development Bond with Okasan Securities

Washington, D.C. - The Inter-American Development Bank (”IDB” or “IADB”), rated Aaa/AAA, issued two new MXN deals, 3.5y and 7y respectively under the sustainable development goal (SDG) 13, which promotes climate action. Okasan securities is the distributor of the bond with J.P. Morgan being the sole arranger.

IDB, a pioneer in the realm of social bonds, has been operating in Latin America and the Caribbean region to fund programs running for the improvement of the Latin society and people’s life. These trades further highlight the recent launch of IDBs sustainable development bond (SDB) program earlier this year. The IDB emphasizes its strategic priorities to mitigate the impact of climate change and avert consequential calamities which recently are more frequently experienced.

The proceeds of this bond will be used for IDB projects seeking to achieve the sustainable development goals, which includes aiming to counter the current deteriorating climate conditions in Latin America and the Caribbean along with global warming and the rise in sea levels. These projects are in line with the UN proclaimed SDGs.

Through the issuance of this SDB, the organization aims not only to help these countries achieve such goals but to provide opportunities for the investors across the world to fulfill their social responsibilities; this time with brisk demand coming from Japan.

With full support from our distributor in Japan, Okasan Securities, the issuance comes in two parts. One which matures in 3.5 years with fixed coupon payments and the other in seven years which is a zero coupon both funded in Mexican pesos (further details below). The proceeds of the bond will allow IDB to fund its projects in various parts of Latin America and the Caribbean.


Bond Summary Terms

3.5 years

Issuer: Inter-American Development Bank

Issuer rating: Aaa/AAA

Amount: MXN 395,000,000

Settlement Date: 27th November 2019

Coupon: 5.64%

Coupon Payment dates: Semi-Annually in arrears, on each 25 May and 25 November starting from and including 25 May 2020 to and including the Maturity Date

Issue Price: 100.00%

Maturity Date: 25th May 2023

ISIN: XS2069018963

7 years

Issuer: Inter-American Development Bank

Issuer rating: Aaa/AAA

Amount: MXN 444,000,000

Settlement Date: 27th November 2019

Coupon: 0%

Issue Price 66.90%

Maturity Date: 27th November 2026

ISIN: XS2069018377

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.

Since becoming the first Asian member country of the IDB in 1976, Japan has been involved in IDB projects through a number of funds and programs.

About Okasan Securities Co., Ltd.

Okasan Securities Co., Ltd. forms the main core of the Okasan Securities Group Inc. (“Group”) founded in 1923. Raising motto as “Securities company providing the best-in-class asset management services”, they have 62 domestic branches, 2 international and provide a wide spectrum of securities investment and asset management services to its clients and investors. As of end of September 2019, they have around 500,000 customer accounts (around 790,000 customer accounts for Group), assets under custody of 4.5 trillion yen (5.1 trillion yen for Group) and total employees of 2675 (3629 for Group).

Press contact
More Information

Laura Fan
Head of Funding
(202) 623 - 3772

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