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IDB launches $1 billion 7-year SOFR Index-Linked Global Bond

The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new US$1 billion 7-year benchmark bond linked to the Secured Overnight Financing Rate (SOFR) index.

The transaction pays a quarterly floating coupon of Compounded SOFR+30 basis points and matures on February 15, 2029. The settlement date is February 15, 2022.

This transaction marks IADB’s first SOFR-linked benchmark of 2022, as well as their second-ever 7-year SOFR-linked benchmark. This highly successful transaction experienced strong momentum from the outset, resulting in a high-quality orderbook in excess of $1.1 billion from 22 investors. 

Joint lead managers for this transaction are BofA Securities, TD Securities and Wells Fargo Securities.

"Developing the SOFR bond curve is part of the IADB’s overall funding strategy. We were focused on the longer end as we were seeking duration. Given the lack of recent supply, we felt this week was optimal for a 7-year issuance.  The oversubscribed book allowed us to print a larger than expected size of $1 billion", said Laura Fan, Head of Funding at the IDB.

Investor Distribution

Geographic Region

Investor Type




Banks/Private Banks





Central Banks/Official Institutions





Fund Managers/Corporates


Bond Summary Terms


Inter-American Development Bank (Ticker: IADB)

Issuer rating:

Aaa / AAA (Moody’s / S&P)


USD 1 billion

Settlement date:

15 February 2022 (T+5)

Maturity date:

15 February 2029


Compounded SOFR+30bps, Quarterly, ACT/360


SOFR Index, where SOFR Index Start and SOFR Index End will be 5 days prior to Interest Period

Coupon Payments:

15th of each February, May, August and November

Reoffer Price:



London Stock Exchange's Regulated Market


Fedwire, Euroclear, Clearstream

Joint lead managers:

BofA Securities / TD Securities / Wells Fargo Securities


US4581X0EC87 / 4581X0EC8


Joint Lead Manager Quotes

“A well-timed return to the SOFR linked market by the IDB. This transaction adds a fresh reference along the issuer’s SOFR floating rate curve with a new 2029 maturity point and was met with strong demand from a diverse investor set. This allowed the issuer to match its largest ever SOFR benchmark syndication size of US $1 billion”, said Adrien de Naurois, Managing Director, Head of DCM SSA & EMEA IG Syndicate, BofA Securities.

"We congratulate the IDB team for their highly successful SOFR-linked Global benchmark, which is their first FRN transaction of 2022. IADB's second-ever 7-year SOFR-linked benchmark has enabled IDB to add yet another strategic point to their well-established SOFR curve. The success of this deal at the longer tenor demonstrates the continued wide appeal of the IDB name to investors across the maturity spectrum. We are delighted to have been involved in this transaction", said Paul Eustace, Managing Director, Head of EMEA Syndicate, TD Securities.

"Top Supranational IDB has proven once again to be an issuer with one of the deepest investor base in SOFR floating product. This 7-year global benchmark becomes IDB's first US $1 billion note issued in anything longer than 5-years. Notably, pricing matched that of top supra peers and remained inside of the issuer’s fixed rate curve. Congratulations to the IDB team for its perfect timing and seamless execution", said Carlos Perezgrovas, Head SSA Origination, Wells Fargo Securities, LLC.

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.

Information on bonds for Investors is available on the IDB website:

Additional Contacts

Fan,Laura Emily

Fan,Laura Emily
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