Skip to main content
IDB launches $3 Billion 7-year Fixed Rate Global Sustainable Development Bond

The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new $3 billion 7-year Global Sustainable Development Bond (SDB) benchmark.

The transaction pays a semi-annual coupon of 1.125% and matures on 20th July 2028. It was priced with a spread of 7 basis points over mid-swaps, which equates to 8 basis points over 1.250% UST due June 2028 and carries a semi-annual yield of 1.234%. 

IDB’s Sustainable Development Bonds raise awareness for their strategic priorities which are aligned to all 17 United Nations Sustainable Development Goals.

This latest $3 billion 7-year transaction enjoyed strong investor momentum from the outset with Indications of Interest (“IOIs”) in excess of $2.8 billion and final demand above $4.5 billion. 

The success of this transaction reflects the strong following the IDB credit enjoys with investors globally. The strength of the order book was underscored by the high participation of Bank Treasuries and Central Banks and Official Institutions who accounted for 50% and 34% of the final allocation respectively.

“It is great to see strong investor support for our second USD global benchmark Sustainable Development Bond this year.  We were pleasantly surprised at how quickly the order book grew. The high-quality orders coupled with the breadth of demand gave us the confidence to set the price early. This deal exceeded our size expectations, making this issuance tie for the IDB’s largest-ever 7-year USD benchmark transaction.” Laura Fan, Head of Funding, IDB.

Investor Distribution:

Geographic Region

Investor Type




Central Banks / Official Institutions


Asia & Pacific








Asset Managers





Pension Funds / Insurance / Corp



Bond Summary Terms:


Inter-American Development Bank (Ticker: IADB)

Issuer rating:

Aaa / AAA (Moody’s / S&P)


USD 3 billion

Settlement date:

20 July 2021 (T+5)



Coupon payment dates:

20th January and 20th July each year (semi-annually)

Maturity date:

20 July 28

Issue price:


Issue yield:

1.234% s.a.

Reoffer spread (bps):

Mid Swaps +7 / CT7 +8


London Stock Exchange

Clearing systems:

Fedwire, Euroclear, Clearstream

Joint lead managers:

BMO Capital Markets, Citi, Nomura and Wells Fargo


US4581X0DX34 / 4581X0DX3


Joint Lead Manager Quotes:

“IDB returns to the long-end of the SSA USD curve with a record outing. The $3 billion deal size was a product of IDB’s largest-ever 7-year order book, at over $4.5 billion in demand. The final pricing of US Treasuries plus 8 basis points marks an impressive tightest ever 7-year spread for any high-grade global bond issue. IDB has yet again proven to be nimble when a mix of strong market tone and investor demand for particular tenors presents itself. Kudos to the IDB team, BMO was honored to be a part of the outcome!”. Sean Hayes, Head of US Syndicate & Credit Sales, BMO Capital Markets.

“IDB took advantage of a clear issuance window and constructive market conditions to print their largest 7-year global benchmark in over six years. The $3bn Sustainable Development Bond attracted a high-quality international order book, showcasing the appeal of the IDB credit across the curve. At CT7+8bps, this represents the tightest spread to UST for a 7-year syndicated benchmark in the SSA sector since January 2020. Citi is delighted to have been involved on this very successful transaction.” Ebba Wexler, Managing Director, SSA DCM at Citi

“A phenomenal Sustainable Development Bond (SDB) outing from the IADB, with today’s 7-year transaction completing the Issuer’s core USD benchmark maturities in the format. Since their inaugural USD SDB benchmark in 2020, the IADB have issued 3, 5, 7 & 10-year SDBs, which has enabled the institution to assist and foster sustainable growth, while reducing poverty and inequality within Latin America and the Caribbean countries – all of which are at the core of the 2030 UN Sustainable Development Agenda. The timing, execution, and placement has all the hallmark’s we expect from the IDB and is a testament to the Issuer’s global appeal and issuance strategy.” Mark Yeomans, Managing Director, SSA DCM Nomura

“A tremendous outcome achieved by IDB with its USD 7-year transaction. While this tenor is often viewed as challenging in the USD SSA market, investor support was resilient from a number of high-quality bank treasuries and central banks enabling the issuer to upsize the trade and tighten by 2bp from IPTs. This issue matches the supra’s largest 7yr transaction. Congratulations to the IDB on a very successful trade.” Carlos Perezgrovas, Head of SSA Origination, Wells Fargo Securities LLC

About the IDB

The Inter-American Development Bank is a leading source of long-term financing for economic, social, and institutional projects in Latin America and the Caribbean. Besides loans, grants and guarantees, the IDB conducts cutting-edge research to offer innovative and sustainable solutions to our region’s most pressing challenges. Founded in 1959 to help accelerate progress in its developing member countries, the IDB continues to work every day to improve lives.

*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.

Additional Contacts

Fan,Laura Emily

Fan,Laura Emily
Jump back to top