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IDB launches US$1 billion, 10-year benchmark global bond issue

The Inter-American Development Bank today launched a $1 billion global bond issue with a 10-year maturity that pays a semiannual coupon of 4.25 percent.

Barclay’s, HSBC and JPMorgan Chase are the joint lead managers of the issue. This issue is the only IDB U.S. dollar benchmark global bond for 2005.  The issue, which matures on Sept. 14, 2015, met with strong worldwide demand. It was priced at 26 basis points above the 10-year U.S. Treasury bond and corresponded to a re-offer price of  99.044 percent.

Investors in Asia accounted for 63 per cent of the issue; investors in the Americas subscribed to 21 percent, while investors in Europe, the Middle East and Africa purchased the balance.  The bonds were distributed to various types of investors, including central banks and other official institutions, bank treasury departments, fund managers, pension funds, insurance companies and retail. 

This transaction brings total IDB bond issues for 2005 to $2.8 billion.  The IDB expects to raise about $4.4 billion in the international capital markets during 2005 to help finance its lending program for the economic and social development of Latin America and the Caribbean.  

 

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