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IDB launches $4 Billion 0.625% 5-year Fixed Rate Global

Washington, D.C. – The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new $4 billion 5-year global benchmark.

The transaction pays a semi-annual coupon of 0.625% and matures on July 15 2025. It was priced with a spread of 17 basis points over mid-swaps, which equates to 22.4 basis points over 0.250% UST due May 2025 and carries a semi-annual yield of 0.631%.

This transaction marks IDB’s fourth USD fixed-rate benchmark of 2020 – two conventional transactions and two Sustainable Development Bonds (“SDB”) in response to the COVID-19 pandemic, following IDB’s announcement that it would direct up to USD 12billion of additional lending to support countries in their response to the COVID-19 pandemic and its consequences.

IDB started the year with a $3 billion 5-year global issue in January, then a $2 billion 5-year SDB in March, and a $4.25 billion 3-year SDB in April.

This latest $4 billion 5-year outing enjoyed strong investor momentum from the outset with IOIs > $4.5 billion aided by the global risk rally, with final orders in excess of $5.75 billion across 117 investors. 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 Central Banks and Official Institutions who accounted for 50.2% of the final allocation.

“This trade marks the third 5-year IDB US dollar global benchmark transaction for 2020. We are extremely happy with the strong demand as the order book was the largest ever for a 5-year IDB bond and indeed, there was a record number of investors participating in the bond. The excellent reception bodes well for us as the 2020 borrowing program is our largest size ever,” says Laura Fan, Head of Funding at the IDB.


Investor Distribution:

Geographic Region

Investor Type




Central Banks / Official Institutions


Asia & Pacific








Asset Managers





Pension Funds / Insurance / Corp



Overview of the IDB:

The IDB is a multilateral development institution established in 1959. It is the largest government owned regional source of development finance for Latin America and the Caribbean. The IDB is owned by 48 countries, including 26 Latin American and Caribbean countries and 22 non-borrowing member countries.

Information on bonds for investors is available on the IDB website:


Bond Summary Terms:


Inter-American Development Bank (Ticker: IADB)

Issuer rating:

Aaa / AAA (Moody’s / S&P)


USD 4 billion

Settlement date:

16 June 2020 (T+5)



Coupon payment dates:

15 January and 15 July each year (semi-annually, Long first)

Maturity date:

15 July 25

Issue price:


Issue yield:

0.631% s.a.

Reoffer spread (bps):

Mid Swaps +17 / CT5 +22.4


London Stock Exchange

Clearing systems:

Fedwire, Euroclear, Clearstream

Joint lead managers:

BMO Capital Markets, Goldman Sachs International, Morgan Stanley and Nomura

Co-lead managers:

BofA Securities, Barclays, Citi, Daiwa, Deutsche Bank, HSBC, J.P. Morgan, Scotiabank, TD Securities, Wells Fargo


US4581X0DN51/ 4581X0DN5


Joint Lead Manager Quotes:

“A spectacular result for IDB! This stands as IDB’s largest 5-year benchmark, on the back of their largest ever 5-year orderbook. The pricing is equally impressive, as the tightest mid-swap spread for a 5-year new issue since the COVID-19 crisis outbreak, at 20 bps tighter and double the size of IDB’s 5-year in late March. Congratulations to the IDB team on a fantastic return. BMO was thrilled to be involved.”

Sean Hayes, Managing Director & Head of US Syndicate, BMO Capital Markets.

“A truly remarkable transaction executed by IDB today, achieving the tightest print in 5-year by an SSA issuer since the beginning of the crisis, on an absolute basis as well as relative to their curve. The fast bookbuilding process and quality of the orderbook warranted 4bp moves for a final spread of MS+17bps, while achieving the upper end of the targeted size at $4 billion. The timing of this transaction was impeccable, following the back up in yields post pay-rolls on Friday which provided a strong backdrop for issuance. Huge congratulations to the IDB team for a successful transaction by any metric – demand, pricing, timing and sizing outcome.”

Maud Le Moine, Head of SSA DCM at Goldman Sachs.

“This is a tremendous result for the IDB. The final orderbook, as well as the pricing tension demonstrated through the process, is testament to the strength of the IDB’s global investor following. The timing of this particular transaction was also critical to the successful outcome, and the IDB should be commended for moving swiftly to take advantage of the window. Morgan Stanley is delighted to be involved in this transaction.”

Ben Adubi, Head of SSA Syndicate, Morgan Stanley.

“An exceedingly well timed transaction from the IDB – capitalizing on the steepening curve, risk rally and a surprisingly quiet USD primary markets despite last week’s sentiment supportive ECB and NFP. The result speaks for itself – a new liquid on-the-run 5-year benchmark, accompanied with a record order book and very competitive pricing. The IDB’s name recognition, credit quality and mandate continues to be incredibly well supported by the global investor base, affording the IDB economical funding access and Investors constructive investment opportunities.”

Mark Yeomans, Managing Director, Nomura.

About the IDB

The Inter-American Development Bank is a multilateral financial institution supporting Latin America and the Caribbean’s efforts to reduce poverty and inequality, and to bring about development in a sustainable, climate-friendly way. Established in 1959, it is the leading source of development financing for Latin America and the Caribbean, with a strong commitment to achieving measurable results.  Since becoming the first Asian member country of the IDB in 1976, Japan has been involved in IDB projects through a number of funds and programs.

External Contacts

Andrea Ortega

Andrea Ortega
Additional Contacts

Fan,Laura Emily

Fan,Laura Emily
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