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IDB launches $4 Billion 4.125% 5-year Global Benchmark

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 4.125% and matures on February 15, 2029. It was priced with a spread of 40 basis points over SOFR mid-swaps, which equates to 15.1 basis points (“bps”) over 3.750% United States Treasury due December 2028 and carries a semi-annual yield of 4.211%.

The transaction marks the IDB’s first USD benchmark of the new year and represents the tightest trade vs mid-swaps in 5-year with size greater than $3 billion as well as the second tightest trade in the 5-year point so far this year.

With a backdrop of strong market conditions and heightened demand for Supranational, Sovereigns and Agencies (“SSA”) paper, the IDB announced a new 5-year benchmark at 12:08 UKT on Monday morning. The transaction received strong reception from the outset, attracting Indications of Interest (“IOIs”) in excess of $6.5 billion, by the time books officially opened the following morning at 07:54 UKT. The orderbook continued to see great momentum throughout the day and reached $9 billion, by 09:50 UKT, enabling the IDB to tighten final pricing by 3bps from Initial Pricing Thoughts (“IPTs”).

With final books finishing in excess of $10.1 billion, excluding joint managers interest, this is the IDB’s largest ever orderbook, resulting in one of their largest ever USD transaction at $4 billion. The success of the transaction highlighted the quality of the IDB’s credit, as well as the strong following it enjoys with investors globally. The orderbook consisted of high-quality accounts, anchored by Banks/Bank Treasuries and Central Banks / Official Institutions with 51% and 35% of the final allocation, respectively.

This bond is one for the IDB records book – largest ever order book and investor participation.” said Laura Fan, IDB Head of Funding. “Despite the 3bps tightening from IPTs, the book stuck and we printed $4 billion, allowing us to establish another point on our US dollar yield curve. It is an excellent start for our 2024 borrowing program of $19.5 billion.”

Investor Distribution:

Geographic RegionInvestor Type 
Americas30%Central Banks / Official Institutions35%
Asia & Pacific28%Asset Managers 11%
  Pension Funds / Insurance / Corp3%


Bond Summary Terms:

Issuer:Inter-American Development Bank (Ticker: IADB)
Issuer rating:Aaa / AAA (Moody’s / S&P)
Amount:USD 4 billion
Settlement date:30 January 2024 (T+5)
Coupon payment dates:February 15th and August 15th (semi-annually)
Maturity date:February 15st,  2029
Issue price:99.611%
Issue yield:4.211% s.a.
Reoffer spread (bps):SOFR MS+40 / UST 3.750% 12/28 + 15.1 bps
Listing:London Stock Exchange
Clearing systems:Fedwire, Euroclear, Clearstream
Joint lead managers:Deutsche Bank, HSBC Bank Plc, Morgan Stanley & Co International Plc, Scotiabank
Co-Lead managers:Barclays Bank PLC, BMO Capital Markets, BNP Paribas, Merrill Lynch International, CIBC World Markets Corp, J.P. Morgan Securities plc, Nomura International Securities, RBC Capital Markets, Wells Fargo Securities


Joint Lead Manager Quotes:

Congratulations to the IDB Team on a successful first USD issuance for 2024 with a new 5-year Global Benchmark, adding further liquidity to the belly of their curve. The strong investor interest from the outset allowed for a comfortable$4 billion-sized print which was at the upper end of the target, making it also the largest IDB USD Global since 2021. The transaction was met with very good demand from the Real Money and Central Bank community, culminating in a high quality final orderbook in excess of $10.1 billion, one of the largest USD orderbooks for the IDB in recent history. Deutsche Bank is delighted to have been involved in this milestone transaction.” Katrin Wehle, Managing Director, Head of SSA DCM Origination, Deutsche Bank.

“Congratulations to the IDB team on achieving an excellent first USD benchmark of 2024 and its largest orderbook to date. The breadth and quality of demand generated underlines IDB’s global investor recognition and status as a best-in-class SSA borrower.” Elena Farrell, Director, SSA DCM, HSBC.

“An extremely successful and rewarding outing for IDB’s first USD benchmark of the year. Despite the congested USD pipeline recently, the transaction gathered strong attention from the investor base, culminating in a record-breaking high quality final orderbook in excess of $10.1 billion. Morgan Stanley is delighted to have been involved in this transaction.” Ben Adubi, Managing Director, Head of SSA, Morgan Stanley.

"We congratulate the IDB for the exceptional result in this week's landmark 5-year $4 billion transaction, one of the strongest we have seen this year. The record size and quality of the orderbook are a testament to investor demand for the IDB name, strategic issuance timing, and thoughtful pricing decisions during the book-build process. Scotiabank was very pleased to support the transaction by serving as Joint Bookrunner." Cesare Roselli, Global Head of SSA Origination, Scotiabank.

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

*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.

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. Take our virtual tour.


Mena Duran,Melissa

Mena Duran,Melissa
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