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IDB launches US$2 billion 2-year Fixed Rate Bond

The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new US$2 billion 2-year Global benchmark.

The transaction pays a semi-annual coupon of 3.25% and matures on 1st July 2024. It was priced with a spread of 5 bps over SOFR mid-swaps, which equates to 18.85 basis points over the 2.500% UST due May 2024 and carries a semi-annual yield of 3.255%.

This transaction mark’s IDB’s second USD benchmark of the year and IDB’s first 2-year benchmark since July 2019. The transaction was well received from the start with Indicators of Interest in excess of US$3.75 billion when books officially opened, which allowed IDB to set the size and spread in the London morning, driving further momentum. Books continued to grow throughout the London morning, resulting in a final orderbook in excess of US$5.5 billion, allowing IDB to price a US$2 billion sized transaction.

The transaction was well received from investors, highlighted by the quality and size of the orderbook. Central Banks / Official Institutions represented well over two-thirds of final allocations with bank treasuries accounting for 19%.

“We are very pleased with the strong reception from high-quality investors including central banks and official institutions. After a period of market volatility, a more benign market backdrop allowed us to offer value to investors with a solid 2-year transaction, a rare maturity for us. The short-end part of the SSA USD curve has been underserved as attested by the over-subscribed orderbook.” Laura Fan, Head of Funding, IDB.

Investor Distribution:

Geographic Distribution


Investor Type





Central Banks/Official Institutions





Banks/Private Banks





Fund Managers/Corporates








Bond Summary Terms:


Inter-American Development Bank


Aaa / AAA (stable / stable)


US$2 billion


1 July 2022 (T+7)




1 July 2024 (2 years)

Issue Price:


Issue Yield:

3.255% s.a.

Reoffer Spread:

MS + 5bps / CT2 + 18.85 bps


London Stock Exchange’s Regulated Market


US4581X0EE44 / 4581X0EE4


BMO (B&D) / Morgan Stanley / Nomura / Wells Fargo

Co-lead managers:

Barclays / BoAML / Citi / Daiwa / Deutsche Bank / HSBC / JP Morgan / Natwest / RBC / TD


Joint Leader Manager Quotes:

"IDB returns with its second USD benchmark fixed rate deal of 2022 with the trade of the week, as the tightest issuer alongside plenty of competition in a very busy few days of USD SSA supply. Over two thirds of the bonds sold to Central Banks & Official Institutions and over 60% into the Americas region not only underscores the quality of demand for this 2-year, but specifically the continued momentum with US state & municipal accounts investing in IDB bonds. Congratulations to IDB on a top-notch execution, BMO was thrilled to be involved.” Sean Hayes, Managing Director & Head of US Syndicate, BMO Capital Markets.

“An excellent outcome for IDB in a rare maturity for the issuer. The large level of oversubscription in the transaction, despite a volatile market backdrop with challenging moves in swap spreads over the course of execution, further reinforces the attractiveness of the IDB credit with the global investor community.” Ben Adubi, Head of SSA at Morgan Stanley.

“The Inter-American Development Bank (IDB) delivered exactly what the doctor ordered! Their USD 2 billion Global 2-Year transaction provided investors with a perfect safe haven; a top tier Supranational, front-end transaction (notably a rare maturity from the IDB) with a good pick up to US Treasury Bonds and US Government-Sponsored Enterprises. The IDB garnered broad based demand, resulting in their largest indications of interest (IOIs) and final order book in over a year. The timing, execution and placement had all the hallmark’s we expect from the IDB and is a testament to the Issuer’s global appeal and issuance strategy.Mark Yeomans, Managing Director, SSA DCM, Nomura.

"Congratulations to the IDB team for navigating the recent market volatility—especially in the front-end—to print a successful $2 billion 2-year Benchmark transaction. This issuance not only helped re-open the broader IG market, but it also underscored IDBs strength as an Issuer as seen by the high quality and size of the order book. The timing and tenor of this trade resonated globally across investor segments, allowing IDB to build a strong and stable book that tightened 3bps from IPTs.  It was a pleasure working on this smooth transaction with the IDB team!" Carlos Perezgrovas, Head of SSA Origination, Wells Fargo Securities.

About the IDB

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.

For investor information about IDB’s bonds, please visit

*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.

Additional Contacts

Fan,Laura Emily

Fan,Laura Emily
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