IDB launches USD 2.25 Billion 3.500% 10-year Sustainable Development Bond

The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new USD 2.25 billion 10-year Global Sustainable Development Bond.

The transaction pays a semi-annual coupon of 3.500% and matures on 12th April 2033. It was priced with a spread of 53 basis points over SOFR mid-swaps, which equates to 24.9 basis points over 3.500% UST due February 2033 and carries a semi-annual yield of 3.597%.

Navigating a crowded new issue window, the IDB announced the transaction at the London open on Monday morning. The transaction received strong reception from the outset, attracting Indications of Interest (“IOIs”) in excess of $1.4 billion by the time books officially opened the following morning at 8:30am UKT. The orderbook continued to see great momentum throughout the day, with orderbooks growing in excess of $3.4 billion, allowing the IDB to tighten final pricing by 1bp and successfully launch a $2.25 billion sized 10-year benchmark.

Orderbooks ultimately closed in excess of $3.1 billion (excluding JLM). The success of the transaction highlights the quality of IDB’s credit, as well as the strong following it enjoys with investors globally. The orderbook consisted of high-quality accounts, anchored by Banks/Bank Treasuries and Central Banks /Official Institutions with 45% and 30% of the final allocation, respectively.

“Since we haven’t done a 10-year since 2021, we were very focused on this part of the curve.  The lack of recent long-dated USD SSA supply combined with higher yields gave us the confidence to go ahead and indeed, the issuance exceeded our initial expectations.  The Sustainable Development bond format also attracted broader demand from a geographical and investor type perspective which allowed us to print the larger size.” Laura Fan, Head of Funding, IDB

Investor Distribution:

Geographic Region

Investor Type




Central Banks / Official Institutions







Asia & Pacific



Asset Managers





Pension Funds / Insurance / Corp


Bond Summary Terms:


Inter-American Development Bank (Ticker: IADB)

Issuer rating:

Aaa / AAA (Moody’s / S&P)


USD 2.25 billion

Settlement date:

12 April 2023 (T+5)



Coupon payment dates:

12th April and 12th October each year (semi-annually)

Maturity date:

12th April 2033

Issue price:


Issue yield:

3.597% s.a.

Reoffer spread (bps):

SOFR MS+53 / UST 3.500% 02/33 + 24.9 bps


London Stock Exchange

Clearing systems:

Fedwire, Euroclear, Clearstream

Joint lead managers:

BMO Capital Markets Corp., BofA Securities, Deutsche Bank, Morgan Securities Plc

Co-lead managers:

ANZ, Barclays Bank PLC, CBA, Citi, HSBC Bank Plc, JP Morgan, Nomura, RBC Capital Markets, Scotiabank, Wells Fargo Securities



Joint Lead Manager Quotes:

“Congratulations to the IDB team on re-opening primary markets for the first time in four weeks, and doing so in the long-end of the SSA USD curve. A well-distributed transaction including nearly 100 different investors across regions underscores IADB's depth of access and global following.” Sean Hayes, Managing Director, Head of US Symdicate, BMO

“A successful and rewarding outing for the IDB in the most challenging tenor of the USD SSA segment. This transaction was particularly impressive in the context of heavy concurrent issuance volumes by peers across the curve. The depth and breadth of investor interest as well as attractive funding is a testament to the experience of the IDB funding team.” Kamini Sumra, Managing Director, SSA Origination, BofA Securities

“Congratulations to the IDB team on a successful return to the dollar market with a new 10-year Sustainable Development Bond, further extending its curve with a new liquid long-end reference. The strong momentum allowed for a USD 2.25 billion sized print which was at the upper end of the target. The transaction was met with good demand from Bank Treasuries and Central Banks, culminating in a high quality final orderbook in excess of $3.1 billion which highlights investor support for the IDB’s Sustainable Development efforts. Deutsche Bank is delighted to have been involved in this transaction.” Katrin Wehle, Managing Director, Head of SSA DCM Origination, Deutsche Bank

“Congratulations to the IDB team on a well-received trade amid a busy USD supply pipeline. Today’s issuance not only helps reopen the dollar market in Q2, but it also underscores IDB’s strength as an Issuer, as exhibited by the quality and size of the order book. The timing and execution of this trade resonated across investor segments, and is further testament to IDB’s global appeal and issuance strategy. We are delighted to have been part of this transaction.” Ben Adubi, Executive Director, Head of SSA, Morgan Stanley

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.

Information on bonds for Investors is available on the IDB website:

*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.