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IDB launches $600 million 10-year SOFR Index-Linked Global Bond

The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new $600 million 10-year benchmark bond linked to the Secured Overnight Financing Rate (SOFR) index.

The transaction pays a quarterly floating coupon of Compounded SOFR + 36 basis points and matures on June 10, 2031. The settlement date is June 10, 2021.

The transaction marks IADB’s longest SOFR benchmark issued to date, following the USD 500 million 7-year SOFR-linked benchmark priced in March 2021. At a final spread of SOFR +36 basis points, this transaction represents the tightest ever SSA SOFR transaction issued in the 10-year tenor and the longest-dated SSA SOFR FRN outstanding. Joint lead managers for this transaction are BMO Capital Markets and Wells Fargo Securities.

"We have been looking for an opportunity to extend our SOFR curve since our 7-year transaction in March.  We have been monitoring potential investor interest as well as market conditions and felt that this week was optimal for a long-dated SOFR issuance. The high-quality order book allowed us to print a $600 million deal from the originally targeted $500 million," said Laura Fan, Head of Funding at the IDB.

Investor Distribution:

Geographic Region


Investor Type




Banks/Private Banks





Fund Managers/Corporates



Bond Summary Terms:


Inter-American Development Bank (IDB)

Issuer Rating:

Aaa/AAA (all stable)

Notional Amount:

USD 600,000,000

Settlement Date:

10 June 2021

Maturity Date:

10 June 2031


Compounded SOFR + 36 bps, Quarterly, ACT/360


SOFR Index where SOFR Index Start and SOFR Index End will be 5 days prior to Interest Period

Coupon Payments:

10th of each March, June, September and December

Reoffer Price:



London Stock Exchange’s Regulated Market


New York


Fedwire, Euroclear, Clearstream

Joint Lead Managers:

BMO Capital Markets, Wells Fargo Securities


XS2352256973 / 4581X0DW5

Joint Lead Manager Quotes:

“IDB has achieved another milestone in SOFR development with an oversubscribed 10-year FRN bond. The transaction represents the longest-dated SSA SOFR bond outstanding and only the second-ever 10-year. IDB continues to demonstrate leadership, breaking new ground and growing the investor base for SOFR debt. BMO was thrilled to be a partner,” said Sean Hayes, Managing Director, Head of US Syndicate & Credit Sales, BMO Capital Markets.

“Congratulations to the IDB for joining a very select group of borrowers that have accomplished the goal of tapping the long end of the SOFR market. This transaction not only becomes the longest SOFR-linked bullet transaction to date, but also proves the US investor base continues to expand and care for this type of product. A huge achievement as well to have managed an oversubscription from the original deal size. Wells Fargo is proud and thankful for being part of this transaction,” said Carlos Perezgrovas, Head SSA Origination, Wells Fargo Securities.

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
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