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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 350 million, equivalent to $226 million. Japan Post Insurance Co., Ltd. is the sole investor of the bond with Wells Fargo Securities LLC 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 first SDB private placement targeted to a Japanese institutional investor, Japan Post Insurance.

Issuer:

Inter-American Development Bank (Ticker IADB)

Issuer rating:

Aaa / AAA (Moody’s / S&P)

Amount:

AUD 350,000,000

Settlement date:

29 May 2020

Coupon:

Coupon payment dates:

1.30 %

29 May and 29 November (semi-annual)

Maturity date:

29 May 2030

Clearing systems:

Euroclear, Clearstream

Lead manager:

Wells Fargo Securities, LLC

ISIN / CUSIP:

XS2178073529 / 217807352

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 Japan Post Insurance

Japan Post Insurance began operations in 2007 as the life insurance company within the Japan Post Group of companies, following the privatization of Japan Post and the creation of separate companies for its various businesses.

As a member of the Japan Post Group, Japan Post Insurance is vigorously promoting activities to achieve the SDGs. As an institutional investor, Japan Post Insurance executes ESG incorporated investment as a method of those activities.

External Contacts

Andrea Ortega

Andrea Ortega
Additional Contacts

Fan,Laura Emily

Fan,Laura Emily
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