The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new $3 billion short 3-year Global benchmark.

The transaction pays a semi-annual coupon of 4.500% and matures on 15th May 2026. It was priced with a spread of +24 basis points over SOFR mid-swaps, which equates to 16.2 basis points over 4.125% UST due June 2026 and carries a semi-annual yield of 4.531%.

The transaction marks IDB’s first 3-year fixed-rate USD benchmark since its $3.5bn 3-year print in September 2021.

Capitalising on an open window ahead of quarter-end, the transaction managed to attract robust investor interest from the outset, with indications of Interest (“IOIs”) reaching in excess of $2.8 billion when books officially opened. The momentum in the orderbook continued throughout the day, with the final orderbook in excess of $4.2 billion (excluding JLM interest) representing the largest orderbook achieved by an IDB USD global offering in 2023 to date. The high-quality, granular orderbook enabled IDB to launch a $3 billion sized benchmark.

The success of the transaction highlighted the quality of IDB’s credit, as well as the strong support it enjoys from the global investor community. The orderbook was of high quality, anchored by Central Banks /Official Institutions and Banks/Bank Treasuries with 46% and 33% of the final allocation, respectively.

“We are pleased with the success of our recent USD benchmark transaction — our first 3-year in almost 2 years. The deal garnered significant interest from the outset and the momentum led to an oversubscribed book with over 100 investors participating. This transaction further builds our curve in the USD market, adding to the 5- and 10-year trades we issued earlier this year.”

Laura Fan, Head of Funding, IDB

Investor Distribution:

Bond Summary Terms:

Joint Lead Manager Quotes:

“Congratulations to the IDB team for an exceptional result in its third visit to the USD market this year. The IADB’s broad support from the global investor base was clearly demonstrated as they matched the tightest 3-year fixed USD spread to swaps from a Supranational issuer in 2023 whilst printing larger size. Barclays is honoured to have supported the IADB on this new 3-year USD Global”.

Alex Paterson, Director, Head of SSA DCM, Barclays

“The Inter-American Development Bank (IDB) continues to enfranchise USD investors across maturities, with today’s 3Y bond complementing this year’s previous 5Y and 10Y Global Benchmark offerings. Today’s transaction was incredibly well timed and provides the market with what it wants – top tier product, from 0% risk-weighted names, at an attractive entry yield – especially given the volatile rate environment. The over-subscription, granular order book and diversification across both geography and investor type, is a testament to the IDB’s credit recognition, global appeal and safe haven status. Congratulations on an excellent transaction”.

Mark Yeomans, Managing Director, SSA DCM, Nomura

“Scotiabank is proud to serve as Active Joint Bookrunner on IADB’s 3-year USD 3bn Benchmark transaction, which attracted a large, high-quality orderbook. This transaction marked IADB’s return to the 3-year Benchmark tenor which further contributed to generating the strong investor response. Congratulations to the IADB team!”

Cesare Roselli, Managing Director, Global Head of SSA, Scotiabank

“Wells Fargo is delighted to be part of this extremely successful transaction. Congratulations to the IADB team for reading the market correctly; achieving a solid result on pricing, book size and an outstandingly good quality orderbook. In our records, this transaction ranks among the best in the sector in months”.

Carlos Perezgrovas, Head of SSA Origination, Wells Fargo Securities

*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.