IDB launches AUD $900 Million Sustainable Development Bond in Kangaroo Market

The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced its largest-ever single tranche Kangaroo bond, a AUD$900 million 5-year Sustainable Development Bond (SDB) Kangaroo benchmark. 

The bond pays a semi-annual coupon of 4.450% and matures on January 21, 2030. It was priced with a spread of 48 basis points over semi-quarterly asset swap, equivalent to 45.6 basis points over the Australian Government Bond 2.75% due November 2029. 

Final order books exceeded AUD $1.37 billion, including AUD $220 million from joint lead managers, with participation from over 40 investors. This transaction reflects the issuer’s strategic focus on liquid benchmarks in the Australian dollar market. 

“This trade is one for our record books—our largest-ever single Kangaroo tranche, the largest-ever Kangaroo order book, and our first Kangaroo bond in Sustainable Development Bond format,” said Laura Fan, IDB Head of Funding. “We aim to issue larger Kangaroo benchmarks while ensuring liquidity and strong secondary market performance.  This trade is a great start to our 2025 borrowing program."

Investor Distribution:

Bond Summary Terms:

Joint Lead Manager Quotes: 

"ANZ is pleased to have once again have partnered with IDB on this highly successful 5-year Sustainable Development Bond, their first Sustainable Development Bond in Kangaroo format. The AUD 900 million final transaction size received robust support from a diverse range of high-quality investors, making it IDB’s largest single tranche issue in the Kangaroo market to date. The granular order book achieved in a busy market highlights IDB’s standing as a leading Supranational, Sovereign, and Agency (SSA) issuer in the Kangaroo market." Brenton Smith, Director, ANZ Debt Syndicate.

“J.P.Morgan are proud to have acted as a Joint Lead Manager for the Inter-American Development Bank's largest-ever Kangaroo bond issuance, a landmark A$900 million 5-year Sustainable Development Bond. IDB took advantage of a supportive market backdrop to establish a new liquid benchmark which reflects the strong demand for the IDB credit in the Australian Dollar market.  We are delighted to have played a role in this significant milestone for IDB.” Tim Pinchen, AUD Syndicate at J.P.Morgan

“IDB’s return to the Kangaroo market with their largest-ever benchmark is the culmination of a renewed focus on liquid benchmarks to a broader investor base.  It is gratifying to see such a positive market response to what I know has been a long-term strategic focus on the Kangaroo market with a lot of time and effort spend marketing the IDB credit to both investors and market makers.  This transaction is another milestone in IDB’s long history in the Kangaroo market and we are confident that subsequent issuance will continue to reinforce IDB’s credentials as a top Tier credit in this market.” Jigme Shingsar, Managing Director, RBC Capital Markets

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.