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IDB launches its largest Sustainable Development Bond

Highlighting Sustainable Development Goal #3—Good Health and Well-Being.

Washington, D.C. – The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new $4.25 billion 3-year sustainable development bond (“SDB”) global benchmark. 

The transaction pays a semi-annual coupon of 0.500% and matures on May 24, 2023. It was priced with a spread of 27.7 basis points over the 0.250% UST due April 15, 2023, which translates to a semi-annual yield of 0.511%.

This is IDB’s largest ever public bond issuance, demonstrating the commitment of a global investor base to the IDB’s strategic priorities and rigorous sustainability framework. With this Sustainable Development Bond, the IDB raises awareness for the United Nations’ SDG#3: Good Health and Well-Being, which aims to ensure healthy lives and promote well-being for all ages.

This issuance follows IDB’s recent 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.

“We are delighted at the strong investor support for our second USD benchmark Sustainable Development Bond highlighting SDG#3—Good Health and Well-Being, especially as IADB increases lending to support the Latin America and Caribbean region in mitigating the impact of the COVID-19 pandemic.  The book built strongly and the extremely high-quality order book allowed us to print our largest bond ever,” said  Laura Fan, IDB’s Head of Funding.


Investor Distribution:

Geographic Region

Investor Type




Central Banks / Official Institutions


Asia & Pacific








Asset Managers





Pension Funds / Insurance / Corp



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 / AAA (Moody’s / S&P)


USD 4.25 billion

Settlement date:

24 April 2020 (T+5)



Coupon payment dates:

24 May and 24 November (semi-annually, short first)

Maturity date:


Issue price:


Issue yield:

0.511% s.a.

Reoffer spread (bps):

Mid Swaps +15 / CT3 +27.7


London Stock Exchange

Clearing systems:

Fedwire, Euroclear, Clearstream

Joint lead managers:

Barclays / HSBC / Nomura / RBC Capital Markets

Co-lead managers:

BofA Securities, BMO Capital Markets, Citi, Deutsche Bank, Goldman Sachs International, J.P. Morgan, Morgan Stanley, NatWest, TD Securities, Wells Fargo


US4581X0DM78 / 4581X0DM7


Joint Lead Manager Quotes:

“Amidst a busy primary market, IDB navigated a highly successful route to a record breaking 3-year benchmark transaction, which at $4.25 billion is their largest deal size yet.  Given the IDB’s key role in helping member countries with their response to the COVID-19 outbreak, the importance of this transaction cannot be overstated. IDB captured a price that offers some performance potential for investors, yet a minimal concession vs the issuer’s outstanding curve. IDB should be applauded for demonstrating such leadership in a challenging and volatile market.”

Lee Cumbes, Head of Public Sector EMEA, Barclays.

“An impressive return to the USD market for IDB issuing their largest ever USD benchmark and tightening 4bps. The landing point on the deal representing only 1bp concession, further helping the $ SSA market to normalize post the COVID-19 crisis. This alongside the funding volumes of $4.25 billion helps IDB to be extremely well positioned to achieve their strategic priorities especially in light of their commitment of up to $12 billion of resources as part of its coordinated efforts to fight the COVID-19 outbreak.”

Asif Sherani, Managing Director, Head of SSA Syndicate, HSBC.

“The IDB has mobilized quickly, in providing assistance to the Latin American and Caribbean countries that are facing challenges posed by the COVID-19 pandemic. This transaction mark’s their 2nd Sustainable Development Bond in dollars, focusing on SDG#3, with the aim to support countries in their response to the health crisis and its consequences. At USD 4.25 billion, the transaction and indeed the book are IDBs largest ever and is a testament to both the safe haven nature of the credit, as well as a resounding support for the work and mandate of the IDB.”

Mark Yeomans, Executive Director, Nomura.

“IDB demonstrated a firm hand and an assertive personality as they navigated a busy market to price what is their largest benchmark to date. The pricing of MS+15 makes this the tightest 3y we have seen since the COVID-19 crisis began and continues IADB’s track record of highly successful Sustainable Development Bond benchmarks since the program was established in September 2019. It is gratifying to be working in support of IDB’s much needed assistance to its member countries as they grapple with extreme challenges due to the pandemic. That the transaction simultaneously scaled such heights on size, pricing and distribution are a testament to IDB’s supreme credit quality as well as the diligence of their funding team,”

Jigme Shingsar, Managing Director, RBC Capital Markets.

About the Inter-American Development Bank

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.

*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.

External Contacts

Andrea Ortega

Andrea Ortega
Additional Contacts

Fan,Laura Emily

Fan,Laura Emily
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