The Inter-American Development Bank today priced a 10-year, US$2 billion global bond issue at 99.56 percent, with a semiannual coupon of 4.375 percent and a maturity date of Sept. 20, 2012.
The transaction was the second $2 billion global issue for the IDB during 2002 and the first in two years with a 10-year tenure. Goldman Sachs and HSBC were the join lead managers.
The issue was oversubscribed and also well received in the secondary market.
Approximately 50 percent of the bonds were sold in Asia, including Japan; 30 percent in the United States; and 20 percent in Europe, the Middle East and Africa. Demand in Europe was stronger than expected.
Demand for the issue was sufficiently firm to permit a pricing yield of 16 and one-half basis points below that offered by U.S. agencies.
Including this transaction, the Bank has borrowed US$6.3 billion in 2002 to date out of an expected funding program of approximately US$8 billion. This transaction is expected to be the last benchmark bond issued by the Bank in 2002.
Proceeds of the bonds will be used to help finance the social and economic development of the IDB’s Latin American and Caribbean member countries.