Today, the Inter-American Development Bank (“IDB” or “IADB,” rated Aaa/AAA), announced a $5 million 5-year callable step-up EYE bond. This EYE Bond was lead managed by J.P. Morgan (JPM). This is IDB’s second EYE Bond, following its inaugural $500 million EYE Bond issued last month with a coupon of 1.5 percent and a maturity of September 25, 2018.
IDB EYE Bonds offer an opportunity for investors to support a “life cycle” approach to building human capital in the Latin America and Caribbean region. This approach focuses on early childhood care and education, through formal primary and secondary education, as well as programs that facilitate labor market placement by improving the transition from school to work through vocational training. In this way, the IDB assists countries in Latin America and the Caribbean to increase productivity and improve social inclusion of young people throughout selected lending operations.
The types of projects eligible to be supported by the EYE Bond Program include primary education (e.g., teacher training, school infrastructure), secondary education (e.g., improved retention and graduation rates, improvement of education management processes and institutional strengthening), Youth-at-Risk (e.g., policy design and/or impact evaluations to benefit at-risk youth or those already engaging in high-risk behavior), school-to-work transition (e.g., support programs to improve the match between learning, skills, and competencies provided in school and those required by the labor market to improve the transition to productive work) and vocational and workforce training (e.g., support training programs to accelerate the social and labor insertion of job seekers, including youth, unemployed adults and active workers).
Bond Summary Terms*
Issuer: Inter-American Development Bank
Issuer rating: Aaa/AAA
Amount: USD 5 million
Settlement date: October 17, 2014
Coupon: Step Up Schedule; Years 1-2: 1.50%, Year 3: 1.75%, Year 4: 2.00%, Year 5: 3.00%
Coupon Payment Dates: Semi-annually on April 17 and October 17, starting on April 17, 2015
Early Redemption: The Issuer has the right to call the Notes at 100% in whole and not in part on October, 17, 2016 and annually thereafter
Maturity date: October 17, 2019
Issue price: 100%
Denomination: USD 1,000 and integral multiples of USD 1,000 in excess thereof
Clearing system: DTC
Lead manager: J.P. Morgan (JPM)
About the Inter-American Development Bank
The IDB is a multilateral financial institution supporting Latin America and the Caribbean’s efforts to reduce poverty and inequality, and to bring about development in a sustainable, climate-friendly way. Established in 1959, it is the leading source of development financing for Latin America and the Caribbean, with a strong commitment to achieving measurable results.
About J.P. Morgan’s Corporate & Investment Bank
J.P. Morgan’s Corporate & Investment Bank is a global leader across banking, markets and investor services. With $21.7 trillion of assets under custody and $403 billion in deposits, the Corporate & Investment Bank provides strategic advice, raises capital, manages risk and extends liquidity in markets around the world. J.P. Morgan has underwritten a total of 33 bonds whose proceeds target Environmental and Social benefits since 2010, with a total of over $3 billion in market share.
*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.
- John Ferriter