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IDB launches its first ever USD 1 billion 5-year SOFR Index-Linked Global Bond

The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new US$1 billion 5-year benchmark bond linked to the Secured Overnight Financing Rate (SOFR) index. 

The bond pays a quarterly floating coupon of compounded SOFR + 20 basis points and matures on February 10, 2026, with a settlement date of February 10, 2021.

The transaction marks IDB’s first SOFR benchmark in 2021, and the issuer’s second FRN linked to the index, following the US$500 million long 4-year SOFR-linked benchmark priced in October 2020. This transaction also represents the joint tightest ever spread to SOFR in the 5-year tenor. 

With Citi, RBC Capital Markets and Wells Fargo Securities, the bond is listed on the London Stock Exchange market.

"This transaction is IDB’s first-ever SOFR Index-Linked bond in the 5-year part of the curve.  The high-quality oversubscribed order book allowed us to print a larger than expected size of $1 billion.  With this issuance and our 4-year SOFR Index-Linked bond last year, the IDB is committed to further building our curve in 2021," said Laura Fan, Head of Funding at the IDB.

Investor Distribution:

Geographic Region Investor Type
Americas 93% Central Banks / Official Institutions 70%
Europe 6% Banks/Private Banks 26%
Asia-Pacific 1% Fund Managers/Corporates 3%
    Insurance/Pension 1%

Bond Summary Terms:

Issuer Inter-American Development Bank (Ticker: IADB)
Issuer rating Aaa / AAA (all stable)
Amount USD 1 billion
Settlement date 10 February 2021 
Maturity date 10 February 2026
Coupon Compounded SOFR + 20bps, Quarterly, ACT/360
Convention SOFR Index where SOFR Index Start and SOFR Index End will be 5 days prior to Interest Period
Coupon payments 10th of each February, May, August and November
Reoffer Price 100.00%
Listing London Stock Exchange’s Regulated Market
Law New York
Clearing Fedwire, Euroclear, Clearstream
Joint lead managers Citi, RBC Capital Markets, Wells Fargo Securities
ISIN / CUSIP US4581X0DT22 / 4581X0DT2


Joint Lead Manager Quotes:

 “The IDB has extended their SOFR curve in style, pricing a new $1bn benchmark at the joint tightest spread to SOFR in the 5-year tenor and an impressive level versus Libor, both against the IDB fixed-rate curve and where SOFR new issuance from peers has come this year. The high-quality order book is a testament to IDB’s position as a leading SOFR-linked FRN issuer in the SSA sector. Citi is delighted to be involved in this spectacular transaction,” said Ebba Wexler, Managing Director, Public Sector DCM, Citi.

“The Inter-American Development Bank’s largest SOFR benchmark to date was a resounding success with early momentum translating into a significantly oversubscribed and very high-quality order book.  It’s clear that this transaction was perfectly timed to meet the surge in investor demand for high-quality term SOFR product and should encourage follow-on demand for this new product,” said Jigme Shingsar, Managing Director, RBC Capital Markets.

“Congratulations to the IDB funding team for successfully adding another reference point to their growing SOFR curve. This new 5-year transaction not only becomes the issuer’s largest SOFR benchmark done in primary, but also matches the tightest in the 5yr SOFR sector. An achievement as well, to garner an oversubscribed and high-quality order book. A testament of the strong following the issuer has from the growing SOFR investor base. As always, Wells Fargo is honored to be part of this issue,” said Carlos Perezgrovas, Head SSA Origination, Wells Fargo Securities.

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.

For investor information about IDB’s bonds, please visit:

*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.


Mena Duran,Melissa

Mena Duran,Melissa
Additional Contacts

Fan,Laura Emily

Fan,Laura Emily
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