IDB launches $4.25 Billion 5-year Global Sustainable Development Bond Benchmark

The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new $4.25 billion 5-year Global Sustainable Development Bond benchmark.

The transaction pays a semi-annual coupon of 4.500% and matures on February 15, 2030. It was priced with a spread of 42 basis points over SOFR mid-swaps, equivalent to +12.18 basis points over 4.375% United States Treasury due December 31, 2029. The bond carries a semi-annual yield of 4.569%. 

Final order books exceeded $10.4 billion from 155 participating accounts. The broad and global distribution of this transaction reaffirms IDB’s support within the global investor community.

“We are delighted with the transaction as it attracted our largest-ever USD global benchmark bond order book and investor participation,” said Laura Fan, IDB Head of Funding. “The strong demand for the 5-year maturity allowed us to issue a larger size than originally planned.  It is a great start to the year, and we will continue building our USD global benchmark curve in 2025.”

Investor Distribution:

Bond Summary Terms:

Joint Lead Manager Quotes: 

“Congratulations to the IDB team on an impressive start to its 2025 funding program with a $4.25 billion 5-year Sustainable Development Bond. IDB’s record $10.4 billion orderbook highlights the resounding interest from IDB’s global investor base in support of its sustainable development goals. The momentum granted IDB the opportunity to both tighten the spread and print maximum size. We are thrilled to have been a part of this transaction.” Sean Hayes, Managing Director, Global Head of Syndicate, BMO Capital Markets

"Congratulations to the IDB team on a successful first USD benchmark for 2025. An orderbook in excess of USD 10.4 billion represents IDB’s largest order book to date and with a $4.25 billion deal size highlights the appeal of the IDB credit and its Sustainable Development activities to the global fixed income investor base. BofA is delighted to have been involved in this transaction." Kamini Sumra, Managing Director, SSA DCM, BofA Securities

“Congratulations to the IDB team for a highly successful first benchmark transaction of their 2025 funding programme. This new issue achieved a record orderbook size for IDB at over $10.4 billion, whilst achieving 3bps of price travel during execution. Both these metrics reflect the strong and ever-growing support from the investors around the globe for the IDB credit and mission. We are delighted to be involved” – Ebba Wexler, Head of Global Sovereign, Supranational and Agency (SSA) DCM, Citi.

“Congratulations to the IDB on the successful execution of its $4.25 billion 5-year benchmark transaction. Despite a busy start to the year in the primary markets, IDB’s offering stood out, drawing a strong and diverse orderbook of over $10.4 billion. The ability to achieve such outcome, while pricing 3bp inside IPTs at SOFR MS+42bps, highlights IDB’s consistent appeal to global investors and the market’s recognition of its mission-driven initiatives. Wells Fargo is proud to have partnered with IDB on their first USD benchmark of the year,” said Carlos Perezgrovas, Head SSA Origination, Wells Fargo Securities.

Information on bonds for Investors is available on the IDB website: https://www.iadb.org/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.