The Inter-American Development Bank today priced a US$2 billion global bond issue at 99.708 percent, with a semi-annual coupon set at 7.00% and a maturity date of June 16, 2003.
It was the Bank's second $2 billion issue for the year 2000.
Deutsche Bank and Goldman Sachs are the lead managers of the issue. Following the positive experience of its previous global bond issues this year, the US$2 billion issue and the Euro 1 billion issue that both mature in 2010, the Bank also used a selling group in this transaction to reach investors that traditionally have not had an opportunity to be offered IDB bonds in primary market sales.
The issue attracted a broad-based favorable response from investors worldwide. About 55 percent of the bonds were sold in the Americas, 30 percent in Asia, and 15 percent in Europe. At the time of pricing, the bond issue was substantially oversubscribed, helping the performance in the aftermarket as the bonds were freed to trade.
While characterized as a conventional global bond issue, the lead managers have utilized different aspects of Internet-based technology to help distribute information about the Bank through an electronic road show and dedicated Websites. They also used Internet-based systems to register indications of interest, to capture some orders in primary market sales and to manage the syndicate’s book-building process. The transaction will benefit from the enhanced transparency and liquidity afforded by the lead managers' electronic trading systems, Deutsche Bank's Autobahn and Goldman Sachs' Web.ET.
The proceeds of the issue will be used to help finance the social and economic development of the IDB's Latin American and Caribbean member countries.
With this financing, the IDB has raised a total of $5.7 billion during this fiscal year, including the Bank’s first US$2 billion global bond with a maturity of 10 years and the Bank's first Euro 1 billion global bond with a maturity of 10 years.