IDB Launches $2 Billion 5-year USD Global Benchmark Bond

The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new $2 billion 5-year USD Global benchmark. The bond pays a semi-annual coupon of 3.750% and matures on June 14, 2030.

The transaction was priced at 44 basis points over SOFR mid-swaps, equivalent to 8.4 basis points above 3.875% United States Treasury due April 30, 2030. Strong demand from global investors seeking high quality, liquid investments drove final order books to over $2.6 billion.

“We are pleased with our second 5-year benchmark of the year,” said Laura Fan, Head of Funding at the IDB. “Strong demand led to a widely distributed $2 billion issuance and demonstrates investor support for the IDB’s mission to promote development across Latin America and the Caribbean.” added Laura Fan.

Investor Distribution:

Bond Summary Terms:

Joint Lead Manager Quotes: 

"Congratulations to the IDB team on the successful execution of their new 5-year benchmark, despite the recent bout of volatility. IDB took advantage of the improved market sentiment, moving swiftly to announce their second 5-Yyear benchmark of 2025. The high-quality orderbook underscores investor support of the IDB credit. HSBC are delighted to have been involved in the transaction.” Asif Sherani, Head of DCM Syndicate and Head of Public Sector DCM, HSBC

“IDB moved quickly to take advantage of a return to more stable underlying markets and a positive primary market tone, and was well-rewarded with a high-quality transaction that priced at their tightest US Treasury spread in the 5-year tenor since January 2022. This transaction reflects IDB's proactive approach in navigating challenging market conditions, supported by its loyal investor base.” Sarah Lovedee, Head of Supranational DCM, J.P. Morgan

“A nimble IDB took advantage of an unexpectedly strong market tone to return to the market with their second successful 5-year. With the program well-funded and ahead of schedule they were able to prioritize pricing and investor distribution over size with a $2 billion issue size. It was especially gratifying to the results of recent investor marketing efforts with some key high-quality accounts supporting this issue in size.” Jigme Shingsar, Managing Director, RBC Capital Markets

“Scotiabank congratulates the IDB on its second USD-denominated transaction of 2025: a highly successful SEC Global Issue. The quality of the orderbook is a testament to investor demand for the IDB name, strategic issuance timing, and thoughtful pricing decisions during the book-build process. Scotiabank is pleased to be involved on such an important issuance,” Cesare Roselli, Global Head of SSA (Sovereign, Supranational, and Agency) Origination at Scotiabank
 

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