The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new AUD$300 million long 3-year fixed-rate Kangaroo offering under the Education, Youth, and Employment (“EYE”) Bond program.

The transaction marks IDB’s second Kangaroo ‘EYE’ bond issuance, the proceeds of which will be directed to fund IDB project loans eligible under the EYE Bond program criteria. The projects under this program are designed to promote sustainable growth, poverty reduction and social equity in Latin America and the Caribbean. The Bank ‘s first Kangaroo issuance under the EYE Bond program came in 2019.

The 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.

The transaction pays a semi-annual coupon of 2.7% and matures on January 29, 2026. It was priced with a spread of 22 basis points over Semi-Quarterly Asset Swap, which equates to a spread of 47.9 basis points over the ACGB Nov-25 and a semi-annual yield of 2.734%.

“We were pleased with the broad-based support from both domestic and international investors for the EYE (Education/Youth/Employment) bond.  The strong interest for social bonds allowed us to further extend the EYE bond curve in Australia.”, said Laura Fan, Head of Funding at the IDB.   

Investor Distribution:

Bond Summary Terms:

Joint Lead Manager Quotes:

“ANZ is pleased to be able to support IDB in establishing their second Australian dollar benchmark EYE bond line for which the proceeds will help finance socially positive projects across Latin America and the Caribbean. IDB skillfully navigated what has been a volatile market by utilizing the popularity and rarity value of their EYE bond program to successfully price this new long 3-year transaction.” Morgan Griffiths, Director Debt Capital Markets, ANZ.

“The Commonwealth Bank is delighted to have supported another successful IDB ‘EYE’ Kangaroo bond issue. This was a well-timed transaction after a month long-sell-off in the rates market. The granular order book had new and repeat EYE investors with a significant take-up from the AUD ESG fund community. The IDB ‘EYE’ program resonates strongly with AUD investors who are acutely aware of the importance and impact of the human ‘life cycle’ projects the IDB promotes through the Latin America and Caribbean region.” Desmond Fennell, Managing Director Capital Markets and Syndicate, Commonwealth Bank of Australia.

“J.P. Morgan were delighted to work with IDB on their second ‘Education, Youth and Employment’ (EYE) Bond in the Kangaroo market. The issuer skillfully navigated the current volatility to print a successful AUD 300 million benchmark. The EYE format was well received by investors with strong participation from the domestic ESG investor community. This transaction cements IDB’s position as one of the preeminent Social Bond issuers in the Kangaroo market.” Sarah Lovedee, Head of Supranationals, Frequent Borrower Group, J.P. Morgan.