Sets record for largest investor interest in an IDB deal

The Inter-American Development Bank (“IADB” or “IDB”), rated Aaa/AAA (Moody’s/S&P), priced a new $4 billion 3-year global issue, its largest bond ever.

The transaction pays a semi-annual coupon of 2.625% and matures on April 19, 2021. It priced with a spread of 22.1 basis points over the 2.375% UST due April 15, 2021, which represents a yield of 2.702% s.a.

The transaction marks IDB’s second USD fixed-rate benchmark of 2018. As in past years, IDB followed up its 5-year global issue in January with a USD 3-year benchmark. At $4 billion, the deal stands as the IDB’s largest-ever USD benchmark and is now IDB’s largest outstanding bond. With a dynamic book building pace and final orders in excess of $7.35 billion across over 110 investors, the success of the transaction reflects the strong following IDB credit enjoys with investors globally. The strength of the order book was underscored by the high participation of central banks and official institutions, which accounted for 71 percent of the final allocation.  

"This was an extrordinary order book that built surprisingly quickly with high quality accounts from the Americas with strong momentum continuing during Asian and European time.  This deal is a record for the IDB—record book size, largest deal ever, and record number of investors," said Laura Fan, IDB Head of Funding.

With this issue, the IDB has completed $10.9 billion of an estimated $19.5 billion borrowing program for 2018.  IDB has borrowed in eight currencies so far during the current fiscal year - AUD, BRL, IDR, INR, MXN, NZD, TRY and USD.

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