IDB Launches $1 Billion Four-Year SOFR Index-Linked Global Benchmark

WASHINGTON — The Inter-American Development Bank (IDB) issued a $1 billion four-year global floating rate bond, marking its second U.S. dollar SOFR Index-Linked benchmark transaction of its 2026 funding program.

The bond generated strong and well-diversified investor demand, with orders exceeding $1.75 billion (excluding JLM interest). The bond matures on October 15, 2030, and carries a floating quarterly coupon of SOFR + 30 bps.

“Amid market volatility and rising rates, a short-dated floating rate note (FRN) was a natural fit for investors and the four-year maturity allowed us to add a new point to our FRN curve. Despite demand exceeding $1.7 billion, we capped the transaction at $1 billion as we approach the completion of this year’s borrowing program. We are pleased with the continued support of investors in helping us advance economic and social development across Latin America and the Caribbean,” said Laura Fan, Head of Funding at the IDB.

“Congratulations to the IDB team on this very successful transaction. Despite the recent market volatility and the risk-off tone today, the IDB was able to capture the strong investor appetite for FRNs and garner a robust, high-quality orderbook, pricing with minimal new issue premium. This has set a positive tone for further U.S. dollar issuances as issuers begin to complete their funding program for the year,” said Lars Humble, Head of SSA Syndicate, BNP Paribas.

"Congratulations to the IDB on its second U.S. dollar FRN global benchmark transaction of the year and its first $1bn FRN print since 2024. The success of this deal, despite broader market volatility, further reinforces IDB's position as a consistent and well-established issuer in the FRN market. The high-quality investor base underscores the institution’s outstanding credit quality and the broad support it continues to receive from investors globally. BofA was delighted to be part of this transaction," said Kamini Sumra, Managing Director, SSA DCM Origination at BofA Securities.

"Scotiabank congratulates the IDB on the successful execution of its $1bn four-year SOFR-Linked FRN, which attracted strong international demand. The high-quality, globally diversified orderbook underscores the IDB’s exceptional credit strength and the strong support that it has from investors worldwide. Scotiabank was pleased to play a role in delivering this successful outcome,” said Cesare Roselli, Global Head of SSA Origination at Scotiabank.

Investor Distribution:

Bond Summary Terms

Information on bonds for Investors is available on the IDB website: https://www.iadb.org/en/investors/investors

*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.