IDB Launches $3 Billion 10-Year Global USD Benchmark

WASHINGTON — The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new $3 billion 10-year USD Global Sustainable Development Bond (SDB) Benchmark.

The transaction pays a semi-annual coupon of 4.375% and matures on July 16, 2035. It was priced with a spread of 61 basis points over SOFR mid-swaps, equivalent to 6.93 basis points over 4.25% United States Treasury due May 2035. Final order books exceeded $8.3 billion, including $550 million in Joint Lead Managers' interest. The wide geographical distribution of participating investors underscores the IDB’s well-established standing across the global investor community.

“We are thrilled with the success of our $3 billion 10-year USD Sustainable Development Bond. It is our largest 10-year IDB orderbook with over $8.3 billion demand which allowed us to print a larger than expected transaction,” said Laura Fan, Head of Funding at the IDB. “The record-tight spread of 6.93 basis points over the 10-year US Treasury reflects robust investor confidence in the IDB’s credit and our mission to promote economic and social development across Latin America and the Caribbean."

Investor Distribution:

Bond Summary Terms:

Joint Lead Manager Quotes:

"We congratulate the IDB for a fantastic result. The transaction benefitted from a carefully chosen window and broad investor interest across the globe which enabled the IDB to print its largest 10-year transaction in over four years. The very high quality of the order book and record tight pricing to US Treasuries is a testament to the IDB’s important development mission for Latin America and the Caribbean.” - Katrin Wehle, Managing Director, Head of SSA DCM, Deutsche Bank

"A triumphant USD 10Y Global outing from the IDB which resulted in their largest ever orderbook in maturity. The transaction possesses all the hallmarks of a successful benchmark from the Issuer, aided by a backup in yields, constructive primary market and sustainability label. The quality of the orderbook is a testament to the IDB’s credit standing and investor work undertaken by the Funding team. Congratulations to the IDB team on an outstanding transaction." - Mark Yeomans, Managing Director, DCM SSA, Nomura

"Congratulations to the IDB team on their latest 10-year USD benchmark transaction. Against a backdrop of persistent headline risk, the correct pricing strategy attracted a high quality orderbook from IDB's global investor base. Investors focus on sourcing AAA paper at attractive yields enabled IDB to achieve a record tight spread vs the US Treasury benchmark reference in the long end of the curve. We were delighted to work on this transaction for IDB." - Laura O'Connor, Managing Director, Head of UK DCM, TD Securities

“We’re proud to have supported IDB on this standout 10-year Sustainable Development Bond – the tightest 10-year SSA transaction versus Treasuries on record and IDB’s largest-ever orderbook for the tenor. This result reflects the exceptional strength of IDB’s credit, the market’s alignment with its development mission, and the continued value of strategic execution in a competitive issuance landscape.” - Carlos Perezgrovas, Head of SSA Origination, Wells Fargo

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.