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Inter-American Development Bank issues First Bond denominated in Costa Rican Colones

The Inter-American Development Bank today announced it has issued its first bond denominated in Costa Rican Colones, the sixth in a Latin American currency in a series of pioneering IDB issues since 2004.

The CRC 25.97 billion issue (equivalent to approximately US$50 million), priced on October 2, pays a fixed semiannual coupon of 7.40 percent. Citigroup Global Markets Inc. is the lead manager of the bond, which matures on October 11, 2012. The issue was priced at 100 percent and all payments will be made in U.S. dollars.

The bond was very well received in the market and was placed among institutional investors, both domestic and international, accounting for 71% and 29% of the demand respectively. The proceeds, which were swapped into U.S. dollars, will be used to fund the IDB lending program for the economic and social development of Latin America and the Caribbean.

By issuing a portion of its debt in Latin American currencies, the IDB is diversifying its sources of financing and taking advantage of favorable market opportunities. In previous instances it has issued debt denominated in Brazilian reais, Chilean, Colombian, Mexican pesos and Peruvian Soles.

The IDB 2007 Borrowing Program is expected to be around US$4.6 billion.

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