IDB Launches GBP 500 Million 1.250% Benchmark Due December 2025

The transaction pays an annual coupon of 1.250% and matures on 15 December 2025. It priced with a spread of 40 basis points over the 2.000% UKT due September 2025, which represents a reoffer yield of 1.305% annually.

The strength of investor demand allowed IDB to both tighten re-offer pricing as well as up-size the transaction. The final size of the deal matched IDB’s previous largest GBP-denominated syndicated transaction, and the pricing is the tightest Gilt spread achieved in 2019 for an SSA GBP-denominated benchmark maturing in 2025.

“Given the current market backdrop, we are very pleased with the overall results of this transaction. The strong investor support for this trade as allowed us to extend our GBP curve in size. More so, this new December 25 line established a new record for the number of investors in a sterling deal for the IDB.” said Laura Fan, Head of Funding, IDB.


Investor Distribution:

By Geography

By Investor Type

United Kingdom


Banks/Private Banks


EMEA (ex. UK)


Central Banks / Official Institutions


Americas 11% Asset Manager 12%
    Pension Funds / Insurance / Corporates 6%


Overview of the IDB:

  • The IDB is a multilateral development institution established in 1959.
  • It is the largest government owned regional source of development finance for Latin America and the Caribbean.
  • The IDB is owned by 48 countries, including 26 Latin American and Caribbean countries and 22 non-borrowing member countries.
  • Information on bonds for investors is available on the IDB website.


Bond Summary Terms:


Inter-American Development Bank (Ticker: IADB)

Issuer rating:

Aaa (Stable) / AAA (Stable) / AAA (Stable)


GBP 500,000,000

Settlement date:

14 May 2019 (T+10)


Coupon payment dates:

1.250% per annum

15 December in each year commencing on 15 December 2019, up to and including the maturity date. Short first coupon. 

Maturity date:

15 December 2025

Issue price:


Issue yield:

1.305% annual / 1.301% semi-annual

Reoffer spread:

UKT 2.000% due September 2025 +40 bps



Clearing systems:

Euroclear, Clearstream

Joint lead managers:

Barclays, Citi, J.P.Morgan

ISIN / Common Code:

XS1991124063 / 199112406

Target Market:

The manufacturer target market (MIFID II product governance) is eligible counterparties, professional and retail (all distribution channels)


Joint Lead Manager Quotes:

“Another fantastic sterling transaction from IDB, ticking all the boxes. The borrower nimbly took first-mover advantage following the Easter break, capturing investor demand and reopening the market (and this part of the curve), with an up-sized benchmark bond. The transaction both extends IDBs outstanding sterling curve whilst also pricing with minimal concession to theoretical fair value. Barclays was honored to play a role in this new issue,” Alexander Paterson, Director, SSA Origination, Barclays.

“IADB have extended their sterling curve in style. They took advantage of favorable market conditions to establish a new 12/25 point which attracted strong investor appetite, particularly from the bank treasury community. The weight of demand supported a comfortable £500mm size and allowed a final print 1bp tighter than initial guidance. Citi was delighted to be involved in this highly successful transaction,” Alex Barnes, Head of SSA Syndicate, Citi.

“Another stellar sterling deal from IADB. Lack of recent GBP supply combined with a strong market backdrop allowed IADB to elegantly launch an oversubscribed new £500mn Dec-25 bond. The high-quality investors along with the ability to tighten price is a testament to the IADB credit. It was a pleasure for J.P. Morgan to be involved,” Matthieu Batard, Head of SSA Syndicate, J.P. Morgan.

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 region. The IDB is the leading source of multilateral financing for Latin America and the Caribbean.

Press contact
More Information

Laura Fan
Head of Funding
(202) 623 - 3772