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IDB Launches Australian Dollar Sustainable Development Bond (SDB)

Highlighting Sustainable Development Goal #3—Good Health and Well-Being.

The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new 10-year fixed rate Sustainable Development Bond (“SDB”) focused on SDG#3 (Good Health and Well Being) in Australian Dollar (AUD) valued in 50 million, equivalent to $33.26 million. Mitsui Sumitomo Aioi Life Insurance Company, Limited is the sole investor of the bond with Daiwa Capital Markets America Inc. being the arranger.

This issuance follows IDB’s March announcement that it would direct up to $12 billion of additional lending to support countries in their response to the COVID-19 pandemic and its consequences.

The IDB will concentrate support in four main areas:

  • The Immediate Public Health Response: Support for countries’ preparedness and response capacities to help contain the transmission of the virus and mitigate its impact, with resources to strengthen public healthcare systems and purchase supplies and equipment.
  • Safety Nets for Vulnerable Populations: Measures to protect the income of the most affected populations through existing transfer programs, non-contributory pensions and grants. Other proposed measures include extraordinary transfers to workers in the informal sector and support for companies in sectors particularly affected by the crisis, such as tourism.
  • Economic Productivity and Employment: Assistance to SMEs, which account for 70% of the region’s jobs, through financing programs and short-term liquidity guarantees, foreign-trade financing and guarantees, loan restructuring, and support for strategic supply chains.
  • Fiscal Policies for the Amelioration of Economic Impacts: Support to countries in designing and implementing policies in three key areas: fiscal measures to finance the response to the crisis; continuity plans for the execution of expenditures and public procurement; and measures to support economic recovery.

This is IDB’s second SDB private placement targeted to a Japanese institutional investor, Mitsui Sumitomo Aioi Life.

Issuer:

Inter-American Development Bank (Ticker IADB)

Issuer rating:

Aaa / AAA (Moody’s / S&P)

Amount:

AUD 50,000,000

Settlement date:

11 June 2020

Coupon:

Coupon payment dates:

1.285 %

11 June and 11 December (semi-annual)

Maturity date:

11 June 2030

Clearing systems:

Euroclear, Clearstream

Lead manager:

Daiwa Capital Markets America Inc.

ISIN / CUSIP:

XS2182825120 / 218282512

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.

About Mitsui Sumitomo Aioi Life

Mitsui Sumitomo Aioi Life was established in October 2012 by the merger of Mitsui Sumitomo Kirameki Life and Aioi Life. As the core life insurance company of the MS&AD Insurance Group, Mitsui Sumitomo Aioi Life have steadily expanded business centered on cross-selling utilizing selling agents of Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance. With the Mission of "To contribute to the development of a vibrant society and help secure a sound future for the planet, by enabling safety and peace of mind", Mitsui Sumitomo Aioi Life provide products and services that support health promotion and solving social issues such as increased burdens of nursing and medical care.

Press contact
More Information

Laura Fan
Head of Funding
lauraf@iadb.org
(202) 623 - 3772

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