The Inter-American Development Bank (“IADB” or “IDB”), rated Aaa/AAA (Moody’s/S&P), priced a new $2.8 billion, 10-year global bond.
The transaction pays a semi-annual coupon of 3.125% and matures on 18 September 2028. Priced with a spread of 18.15 basis points over the UST 2.875% due August 2028, this represents a yield of 3.15%.
This transaction marks IDB’s third public USD dollar fixed-rate benchmark of 2018, having successfully completed issuance in the 3-year (April), and 5-year (January) maturities. With the 10-year benchmark, the IDB has completed $17.1 billion of an estimated $19.5 billion funding program for 2018.
The transaction also complements IDB’s existing maturity profile and injects new liquidity in the long end of the curve, extending it past the Jul-27 Global bond issued in 2017.
The transaction was well oversubscribed, in excess of $4.1 billion, with close to 100 accounts participating from across a broad geography and well-diversified investor base. The strength of the orderbook was underscored by the high participation of Central Bank/Official Money investors, who accounted for 53% of the final allocation.
“We were sure that a $2 billion, 10-year deal could be executed, though many doubted our conviction," said Laura Fan, Head of Funding at the IDB. "The timing felt ideal, given the higher interest rates and the lack of SSA supply in this part of the curve. Indeed, the transaction saw strong momentum from start to finish, allowing us to print our largest ever 10-year global with a record order book and just under 100 investors participating. We were amazed at the depth of the investor base for this 10-year bond."
|By Geography||By Investor Type|
|EMEA||45%||Central Banks/Official Institutions||53%|
Bond Summary Terms
|Issuer||Inter-American Development Bank (IADB)|
|Issuer rating||Aaa / AAA (Moody's / S&P)|
|Amount||USD 2.8 billion|
|Settlement date||18 September 2018 (T+5)|
|Coupon payment dates||18 March and 18 September (semi-annual)|
|Maturity date||18 September 2028|
|Issue yield||3.15% s.a.|
|Reoffer spread||Mid-Swaps+12 / CT10+18.15|
|Listing||London Stock Exchange|
|Clearing systems||Fedwire, Euroclear, Clearstream|
|Joint lead managers||BofAML, GSI, MS, TD|
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. The IDB is the leading source of multilateral financing for Latin America and the Caribbean.