IDB Launches $2.5 Billion 10-year Global Sustainable Development Bond

The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new $2.5 billion 10-year Global Sustainable Development Bond benchmark.

The transaction pays a semi-annual coupon of 4.375% and matures on July 17, 2034. It was priced with a spread of 56 basis points over SOFR mid-swaps, which equates to 15.6 basis points over 4.304% United States Treasury. It is due May 2034 and carries a semi-annual yield of 4.460%.

Final books closed above $5.8 billion with 118 accounts participating. The broad and global distribution of this transaction is once again testament to IDB’s firm support within the global investor community.

“We are pleased with the strong outcome of this transaction.” said Laura Fan, IDB Head of Funding. “The size exceeded our expectations, and it is one of the largest supranational 10-year bonds issued this year. The volume also highlights the robust investor interest in sustainability as this is the first Sustainable Development Bond (SDB) issued under our updated SDB Framework.” 

Investor Distribution:

Bond Summary Terms:

Joint Lead Manager Quotes:

"Congratulations to the IDB team on its successful return with a 10-year benchmark offering, and its first USD Sustainable Development Bond since early 2023. The undersupplied 10-year maturity received strong support, demonstrated by final demand in excess of $5.8 billion. The resounding interest from global investors allowed IDB to both tighten the spread and print impressive $2.5 billion size, larger than recent outcomes in the tenor.” Sean Hayes, MD & Global Head of Syndicate, BMO Capital Markets.

“Many congratulations to the IDB team on a successful return to the 10-year maturity. The $2.5 billion deal size demonstrates that investor demand for duration remains strong for top tier credits despite recent volatility. The new 10-year garnered support from the robust and diversified high quality investors and is a testament not only to IDB’s track record in bringing well placed liquid benchmarks but also the global recognition of IDB’s Sustainable Development programme. BofA is delighted to have been involved.”   Kamini Sumra, Managing Director, SSA DCM, BofA Securities.

“Congratulations to the IDB team for their successful return to the dollar market, following the 5-year benchmark in January. The deal priced with one of the tightest US Treasury spreads seen this year for a 10-year. Today’s new issue also distinguishes IDB as being part of the very few Sovereign, supranational, and Agency  issuers able to provide a 10-year benchmark above the $2 billion threshold in 2024. As the first trade under their updated Sustainable Development Bond Framework, the diverse orderbook composition is a strong vote of confidence in IDB’s commitment to sustainability, as well as their mission to reduce poverty and inequality in Latin American and the Caribbean. We are delighted to be involved.” Ebba Wexler, Head of Global Sovereign, Supranational and Agency (SSA) DCM, Citi.

“Congratulations to the IDB team, who made it look easy to do a successful 10-year USD 2.5 billion benchmark! Ideal timing and right strategy helped garner over $5.8 billion in orders and tighten Initial Price Thoughts (IPTs) by 2bps, to S+56. At an equivalent of +15.6 over the CT10, this transaction becomes the second tightest SSA 10-year benchmark issued this calendar year. A solid transaction all-around. Wells Fargo is honored and grateful to be part of it.” Carlos Perezgrovas, Head SSA Origination, Wells Fargo Securities.

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.