The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA, has priced two Uridashi zero coupon notes for Naito Securities under its Education, Youth and Employment (EYE) Bond Program.
The notes are denominated in Turkish Liras (2-year tenor) and Indonesian Rupiah (3-year tenor) and sold directly to retail investors in Japan. Naito Securities Co., Ltd. is the Uridashi house of the bonds arranged by HSBC Bank plc, a wholly owned subsidiary of HSBC Holdings plc.
EYE Bonds are issued based on the Education, Youth, and Employment (EYE) Bond program provides funding for IDB’s eligible EYE project loans. The EYE Bond program projects, like all IDB projects, are designed to promote sustainable growth, poverty reduction and social equity. However, EYE projects specifically focus on education, youth and employment.
IDB has a “life cycle” approach to building human capital from early childhood care and education, through formal primary and secondary education, as well as programs that facilitate labor market placement by improving the transition from school to work through vocational training. In this way, the IDB assists Latin American and the Caribbean countries to increase productivity and improve social inclusion of young people throughout key intervention stages.
Bond Summary Terms
Issuer: Inter-American Development Bank
Issuer rating: Aaa(Moody’s)/AAA(S&P)
Face Amount: TRY 110m/ IDR 15,500m
Net Proceeds: TRY 84.59m/ IDR 13,376.5m (approximately $15.8 million equivalent)
Settlement date: 8 August 2019
Maturity date: 9 August 2021 (TRY) / 9 August 2022 (IDR)
Issue price: 76.90% (TRY)/ 86.30% (IDR)
Denominations: TRY 10,000 / IDR 50,000,000
ISIN: XS2023696185 / XS2023698470
Clearing system: Euroclear
Solo arranger: HSBC Bank plc
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 Naito Securities Co., Ltd.
Founded in 1933, Naito Securities Co., Ltd. has been operating for over 80 years. Committed to creating an affluent society and enriching people’s lives, it supports investors contribute to society by investing in socially responsible projects, impact investments and actively supports SDGs.
About HSBC Holdings plc
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 66 countries and territories in our geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,659bn at 31 March 2019, HSBC is one of the world’s largest banking and financial services organizations.