The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new NZ$375 million 7-year Sustainable Development Bond benchmark.
The transaction pays a semi-annual coupon of 4.750% and matures on 25th January 2030. It was priced with a spread of +44 basis points over NZ mid-swaps, which equates to +69.55 basis points over the 3% New Zealand Government Bond due April 2029 and carries a semi-annual yield of 4.838%.
The transaction marks IDB’s inaugural NZD fixed rate offering in Sustainable Development Bond format. It represents IDB’s first 7-year fixed rate bond since July 2017 after issuing a 5-year NZ$400 million new line in February 2022.
“We were eager to issue the first Kauri bond of the year as we felt the lack of supply in the past month could generate momentum for a deal. Indeed, strong demand from domestic bank treasuries and asset managers allowed us to print a larger size than expected. It is a great way to start the new year and we hope to issue more Kauri bonds in 2023,” said Laura Fan, Head of Funding, IDB.
Investor Distribution:
|
Geographic Region |
Investor Type |
|||
|
New Zealand |
95% |
|
Bank Treasuries |
76% |
|
Other |
5% |
|
Asset Managers |
19% |
|
|
|
|
Trading |
5% |
Bond Summary Terms:
|
Issuer: |
Inter-American Development Bank (Ticker: IADB) |
|
Issuer rating: |
Aaa / AAA (Moody’s / S&P) |
|
Amount: |
NZ$375 million |
|
Settlement date: |
25 January 2023 (T+9) |
|
Coupon: |
4.750% |
|
Coupon payment dates: |
25th January and 25th July (semi-annually) |
|
Maturity date: |
25th January 2030 |
|
Issue price: |
99.482702% |
|
Issue yield: |
4.838% s.a. |
|
Reoffer spread (bps): |
Mid Swap + 44 bps / NZGB 3% April-2029 + 69.55 bps |
|
Clearing systems: |
NZClear |
|
Joint lead managers: |
ANZ, CBA, Westpac |
|
ISIN: |
NZIDBDT01C0 |
Joint Lead Manager Quotes:
“ANZ was delighted to assist IDB in successfully opening the Kauri primary market for 2023. We believe the tenor and pricing offered in NZD represent an attractive proposition for investors and issuers, and this was reflected in IDB’s positive outcome.” Glen Sorensen, Bond Syndicate – ANZ.
“A fantastic transaction by the Inter-American Development Bank (IDB) re-opening the Kauri market for 2023 with its NZD375 million 7-year Sustainable Development Bond transaction. The IDB’s ongoing commitment to the Kauri market via transactions and investor marketing has continued to deliver both high quality domestic and international investor demand for this offer. The Commonwealth Bank is proud to have partnered with the IDB for this important transaction,” Danny Keene, Director – Debt Capital Markets, Commonwealth Bank of Australia.
“Westpac congratulates IDB on its inaugural Kauri Sustainable Development Bond, which contributes to the depth and development of the domestic sustainable bond market. IDB’s on-going commitment to the Kauri market assisted in achieving the strong execution outcome.” Mat Carter, Head of Debt Capital Markets & Syndicate, New Zealand, Westpac Banking Corporation.
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: 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.
Bachelet,Pablo A.
