The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new GBP 400 million 7-year global Sustainable Development benchmark. The transaction pays an annual coupon of 4.000% and matures on December 17, 2029. It was priced with a spread of 47bps over the UKT 0 ⅞ 10/22/29 reference Gilt, which equates to a semi-annual yield of 4.102%.

This transaction marks IADB’s second benchmark of 2023 across all currencies, following a USD 2 billion 5-year SDB Global benchmark in January, and represents IADB’s first GBP fixed-rate benchmark of the year. It also stands as the first 7-year trade seen in the GBP SSA market since IADB’s very own 7-year (Aug-29) trade in July 2022, re-opening the market for long-end issuance.

This latest GBP 400 million 7-year outing enjoyed a strong reception from investors with the first book update being in excess of GBP 610 million (incl. GBP 40 million JLM interest) in little over an hour from the initial announcement shortly after the London open. The reoffer spread was set at the outset to provide increased clarity to investors. With final orders in excess of GBP 750 million from 41 investors, the final book stands as the second largest ever attained by IADB in a syndicated GBP transaction and reflects the strong following the IADB credit enjoys with investors.

“Our first 2023 outing in the GBP market generated a record orderbook for an IADB sterling-denominated new issue.  The strong reception for this Sustainable Development Bond allowed us to issue a larger than expected size and positioned a solid new reference point in our curve. We are pleased to see continued investor interest in supporting IDB’s mission to improve lives Latin American and the Caribbean,” said Laura Fan, Head of Funding, IADB.

Investor Distribution:

Bond Summary Terms:

Joint Lead Manager Quotes:

“IADB’s standing amongst investors was clearly demonstrated with the strong reception on the longest sterling Supranational, Sovereign and Agency (SSA) benchmark trade seen this year, achieving one of the largest orderbooks the issuer has seen for a sterling-denominated trade. The size of the orderbook reflects how the global investor base remains eager to support the important sustainable development activities of IADB. It was an honor that Barclays was able to be a part of this transaction.”

Alex Paterson, Director, Public Sector DCM, Barclays

“Congratulations to the IDB team on a successful return to the Sterling market with a new GBP 400m 7-year Sustainable Development Bond! This represents the first longer end transaction in the Sterling market this year and the strong outcome is testament to the strength of IDB's credit quality as well as investor support for its Sustainable Development efforts. The execution strategy with setting the spread at UKT+47bps from the outset added clarity to investors and contributed to the strong demand in excess of GBP 750m. Deutsche Bank is pleased to have been part of this transaction."

Katrin Wehle, Managing Director, Head of SSA DCM Origination, Deutsche Bank

“Congratulations to the IADB team on printing the first SSA GBP 7-year benchmark in 2023. IADB's ability to generate broad demand in longer maturities is testament to its strong investor following in the GBP market.”

Elena Farrell, Director, SSA Debt Capital Markets, HSBC

Information on bonds for Investors is available on the IDB website: https://www.iadb.org/investors

*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.