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Inter-American Development Bank Issues Inaugural SEK 1.1 Billion 5-Year ‘EYE’ Bond

The Inter-American Development Bank (“IADB” or “IDB”), rated Aaa/AAA (Moody’s/S&P), priced a new SEK 1.1 billion 5-year fixed-rate offering under the Education, Youth, and Employment (“EYE”) Bond program.

The transaction marks IDB’s first SEK ‘EYE’ bond issuance, the proceeds of which will be directed to fund IDB project loans eligible under the EYE Bond program criteria. The projects under this program are designed to promote sustainable growth, poverty reduction, and social equity in Latin America and the Caribbean. The Bank’s first issuance under the EYE Bond program came in 2014.

The IDB has a “life cycle” approach to building human capital from early childhood care and education, through formal primary and secondary education. Additionally, the organization provides programs that facilitate labor market placement by improving the transition from school to work through vocational training. Moreover, the organization assists to increase productivity and improve social inclusion of young people throughout key intervention stages.

The deal was fully placed with a select few dedicated social bond investors who had expressed strong interest in the ‘EYE’ bond program in SEK-currency format.

“We are pleased to issue our first ever Swedish Krona denominated EYE bond.  This issuance aligned us with investors who share our vision of improving lives in Latin America and the Caribbean.  We are eager to continue expanding EYE bond issuances and investor partnerships are instrumental to that goal,” said Laura Fan, Head of Funding at the IDB.

Lars-Göran Orrevall, Chief Investment Officer at Skandia, said: “The investment is in line with Skandia's ambition to be a sustainability role model. This social bond is extra interesting as it targets funds to well-defined criteria that can be evaluated.”

Lee Heathman, Portfolio Manager at BlackRock Japan, said: “We believe that environmental and social issues are some of the most important issues facing our global society and it is a great opportunity to be able to partner with both IDB and Nordea on this social bond.”

Kamal Grossard-Amin, Managing Director and Head of SSA DCM at Nordea Bank, said: “Nordea is delighted to have facilitated IADB’s inaugural EYE Bond in Swedish Krona, which is also IADB’s largest SEK deal to date. The work towards improving lives and eliminating poverty and social injustice around the world is a cause that we are immensely proud to continuously contribute to.”

Bond Summary Terms:

Issuer:

Inter-American Development Bank (IDB)

Issuer Rating:

Aaa/AAA (all stable)

Notional Amount:

SEK 1,100,000,000

Settlement Date:

31 March 2021

Maturity Date:

31 March 2026

Issue Price:

99.802%

Coupon:

0.250% payable annually in arrears

Coupon Payments:

Each 31 March including Maturity Date

Denominations:

SEK 2,000,000

Listing:

London Stock Exchange

Law:

New York

Clearing:

Euroclear, Clearstream

Sole Lead Manager:

Nordea Bank

ISIN / CUSIP:

XS2324778492

About the IDB

The Inter-American Development Bank is a leading source of long-term financing for economic, social, and institutional projects in Latin America and the Caribbean. Besides loans, grants and guarantees, the IDB conducts cutting-edge research to offer innovative and sustainable solutions to our region’s most pressing challenges. Founded in 1959 to help accelerate progress in its developing member countries, the IDB continues to work every day to improve lives.

*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.

Press contact
More Information

Laura Fan
Head of Funding
lauraf@iadb.org
(202) 623 - 3772

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