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IDB launches C$750 Million 5-year Sustainable Development Bond

The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new C$750 million 5-year CAD Sustainable Development Bond (“SDB”).

The transaction in Canadian dollars pays a semi-annual coupon of 3.400% and matures on 24th May 2028. It was priced at flat to CDOR mid-swaps, which equates to 38.25 basis points over the 3.500% CAN due March 2028 and carries a semi-annual yield of 3.441%.

The transaction marks the IDB’s return to the CAD market since June 2021, when the IDB issued a 5-year C$750 million SDB Global benchmark.

Despite continuing volatility on the back of the Federal Reserve rate hike the week prior and combined with US debt ceiling discussions and Chinese economic data misses during the overnight session, IDB was able to attract strong investor demand from the outset including international interest overnight. Indications of Interest (“IOIs”) stood in excess of C$535 million when books officially opened and grew steadily from there, achieving a final orderbook in excess of C$800 million upon books closing, enabling IDB to price a C$750 million sized transaction.

The success of this deal reflects the strong following the IDB credit enjoys with investors globally while emphasizing its quality in the face of market volatility. The strength of the orderbook was underscored by high participation from Banks/Bank Treasuries and Pension Funds/Insurance/Corp that accounted for 51% and 23% of the final allocation, respectively.

“We are pleased with the excellent outcome of our CAD Sustainable Development Bond (SDB), the first new reference point on our curve since 2021," said Laura Fan, head of funding at the IDB. "The focus on ESG debt continues to be strong and we welcome investor interest in supporting sustainable development in Latin America and the Caribbean. We would like to continue meeting this ESG demand and hope to further build our presence in the Canadian dollar market this year.”

Investor Distribution:

Geographic Region

Investor Type

 

Americas

80%

Banks

51%

EMEA

13%

Pension Funds / Insurance / Corp

23%

Asia & Pacific

7%

Central Banks / Official Institutions

21%

 

 

Asset Managers

5%

 

Bond Summary Terms:

Issuer:

Inter-American Development Bank (Ticker: IADB)

Issuer rating:

Aaa / AAA (Moody’s / S&P)

Amount:

CAD 750 million

Settlement date:

24 May 2023 (T+10)

Coupon:

3.400%

Coupon payment dates:

24th May and 24th November (semi-annually)

Maturity date:

24th May 2028

Issue price:

99.813%

Issue yield:

3.441% s.a.

Reoffer spread (bps):

CDOR MS + 0 / CAN 3.500% March 2028 + 38.25 bps

Listing:

London Stock Exchange

Clearing systems:

Fedwire, Euroclear, Clearstream

Joint lead managers:

CIBC, Scotiabank, RBC

ISIN:

CA458182EK46

 

Joint Lead Manager Quotes:

“We are proud to support the Inter-American Development Bank’s return to the Canadian debt markets with its Sustainable Development Bonds. As a purpose-led bank, we are committed to helping our clients achieve their sustainability ambitions.”

Priya Radha, Global Head, Government Solutions Group, CIBC Capital Markets

“IDB’s first CAD benchmark since 2021 was perfectly timed with clinical execution. A long and diversified list of investors once again provided a strong endorsement for IDB and their status as a leading issuer in the Canadian SSA market. We are proud to continue to partner with IDB in achieving their objectives in Capital Markets.”

Daniel Wilson, Vice President, SSA Syndication, RBC Capital Markets

“Scotiabank congratulates the Inter-American Development Bank (IADB) on its 5-year CAD Sustainable Development Bond which elicited a strong response from both the domestic and international investor base, underscoring the broad appeal of IADB’s credit and its Sustainable Development Bond programme to a well-diversified investor community”

Cesare Roselli, Global Head of SSA Origination, Scotiabank

 

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.

About the IDB

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public- and private-sector clients throughout the

Contacts

Bachelet,Pablo A.

Bachelet,Pablo A.
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