Washington, D.C. – The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA, priced a new 3-year fixed rate Sustainable Development Bond (“SDB”) with Deutsche Bank as sole arranger in Indonesian Rupiah (IDR) valued in 1,375,500 billion, equivalent to US$ 100 million.
This transaction represents the IDB’s inaugural SDB issuance in Indonesian Rupiah. The proceeds of this transaction will be directed to support sustainable development in IDB’s member countries aligned with the Bank’s strategic priorities to reduce poverty and inequalities in Latin America and the Caribbean by promoting economic and social development in a sustainable, climate friendly way. Each strategic priority of the IDB aligns to at least one of the United Nations Sustainable Development Goals (SDGs), with all goals covered within the IDB institutional strategy, which may be adapted from time to time should the United Nations SDGs definition evolve.
“IDB is pleased to issue our first ever Sustainable Development Bond denominated in Indonesian Rupiah. IDB has now issued Sustainable Development Bonds in seven different currencies and we hope to grow this number in 2020 due to strong investor demand for socially responsible investments,” says Laura Fan, Head of Funding at IDB.
“We are proud to have structured the first Sustainable Development Notes denominated in Indonesian Rupiah. The offer was very well received by real money investors in the US, Europe and Asia Pacific where there is continued demand for investments in the environmental, social and governance (ESG) theme. Investors with ESG mandates are rallying to support development banks with clear strategic priorities linked to Sustainable Development Goals. With demand strong and attractive pricing terms, it’s a good time for development banks to finance,” says Ashok Das, Deutsche Bank’s Head of Asia Local Markets Trading and Solutions.
Bond Summary Terms:
| Issuer: | Inter-American Development Bank (Ticker IADB) |
| Issuer rating: | Aaa / AAA (Moody’s / S&P) |
| Amount: | IDR 1,357,500,000,000.00 |
| Settlement date: | 07 February 2020 (T+10) |
| Coupon: Coupon payment dates: | 5.500% 7 February (annual) |
| Maturity date: | 07 February 2023 |
| Issue price: | 100.00% |
| Listing: | London Stock Exchange |
| Clearing systems: | Euroclear, Clearstream |
| Lead manager: | Deutsche Bank |
| CUSIP: | XS2111942608 / 211194260 |
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 Deutsche Bank
Deutsche Bank provides commercial and investment banking, retail banking, transaction banking and asset and wealth management products and services to corporations, governments, institutional investors, small and medium-sized businesses, and private individuals. Deutsche Bank is Germany’s leading bank, with a strong position in Europe and a significant presence in the Americas and Asia Pacific.
Andrea Ortega
Fan,Laura Emily