IDB launches new 5-Year Sustainable Development Bond (“SDB”)

• Proceeds from CAD600 million transaction will finance IDB projects aligned with the Sustainable Development Goal on climate action (SDG 13)

Washington, D.C. – The Inter-American Development Bank (IDB or IADB), rated Aaa/AAA (Moody’s/S&P), priced a new CAD600 million 5-year fixed rate Global Sustainable Development Bond to support the funding of the Sustainable Development Goals (SDGs) under the sustainable development bond program.

This transaction represents the IDB’s third CAD denominated SDB issuance, the proceeds of which will be directed to support the Sustainable Development Goal on climate action (SDG 13) in IDB’s member countries aligned with the Bank’s strategic priorities to mitigate the impact of climate change and avert consequential calamities which recently are more frequently experienced. With this Sustainable Development Bond, the IDB raises awareness for SDG#13: Climate Action, which aims to counter the current deteriorating climate conditions in Latin America and the Caribbean along with global warming and the rise in sea levels

The new issue carries a semi-annual coupon of 0.75% and will mature on October 15, 2025. It was priced with a spread of 33.95 basis points over the 0.5% GOC due September 1, 2025. The pricing translates to a semi-annual yield of 0.767%.

“A great result following our successful 7-year Canadian dollar deal from a few weeks ago. We jumped into the market again as we felt confident a new 5-year would be well received. We were proven correct as we achieved record investor participation in an IDB Canadian dollar deal, surpassing the previous record set by the 7-year deal. Investors welcomed the opportunity to support SDG#13, including low-carbon and climate resilient development IDB projects in Latin America and the Caribbean region,” said Laura Fan, Head of Funding, IDB.

“IDB’s two highly successful benchmarks in a space of two weeks is unprecedented for the CAD SSA market but speaks to the quality of IDB’s credit as well as their strong investor franchise in the Canadian market.  Canadian investors have also shown a strong affinity for IDB’s sustainable development bond program since its launch last year and the opportunity to support Climate Action with this latest transaction has tremendous appeal,” said Jigme Shingsar, Managing Director, RBC Capital Markets.

“Scotiabank is proud to support the IDB’s 5-year CAD 600mm Sustainable Development Bond. Green investors responded favourably to the climate change focus (UN Sustainable Development Goal #13), within the IDB’s broader social mission and sustainability framework. With this transaction, the IDB continues to build its reference benchmark curve, thus reinforcing its commitment to the Canadian Dollar market and its rapidly developing sustainable finance and ESG investment community,” said Cesare Roselli, Global Head of SSA (Sovereign, Supranational, and Agency) Origination at Scotiabank.

“We congratulate the Inter-American Development Bank team on their third sustainable development bond offering in the Canadian dollar market. Today's transaction highlighting SDG #13 Climate Action through the work of IDB in regions directly impacted by climate change adds another liquid reference point to the IDB CAD benchmark curve. The participation from both domestic and international investors for IDB's sustainable development bond programme has grown considerably since the debut transaction last year also in this market and highlights the global support from CAD fixed income investors for IDB's contribution to achieving the sustainable development goals which enabled the issuer to achieve the tightest spread to Mid-Swaps and Government bonds this year from supranational issuers,” said Laura O'Connor, Director, Fixed Income Origination & Syndication.

The bonds were sold to 34 investors across the world, the IDB’s largest investor participation in a CAD-denominated public bond issuance, demonstrating the commitment of a global investor base to the IDB’s strategic priorities and rigorous sustainability framework.

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