The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA, issued a new MXN 800 million 5-year, fixed-rate note under its “Education, Youth and Employment (EYE) Bond” program. The Dai-chi Life Insurance Company, Limited, (Dai-ichi Life) is the sole investor in the bond.
IDB EYE bonds seek to foster human capital development through early childhood coverage and support of youth education from the classroom to the workplace. Funds raised will finance projects in Latin American and the Caribbean that provide childhood care and education and facilitate access to jobs for young people. The Bank‘s first issuance under the EYE Bond program came in 2014.
The purchase of this bond offers Dai-ichi Life the opportunity to invest according to its strategy of combining investments with the highest financial standards with the integration of environmental, social and governance (“ESG”) considerations into investment decisions. Dai-ichi Life was the first life insurance company to establish an ESG fund.
Credit Agricole CIB is the sole arranger of the bonds.
“IDB EYE Bonds help build human capital to improve lives in Latin America and the Caribbeanthrough a life cycle approach focused on three key priority areas – Education, Youth, and Employment. Dai-chi Life’s endorsement of our first-ever Mexican peso (MXN) denominated EYE Bondshows institutional investor interest in supporting IDB’s projects across the region,” said Laura Fan, the IDB’s Head of Funding.
“Dai-ichi Life follows investment principles that combine attractive investment opportunities with social, environmental, and governance (“ESG”) considerations. We strongly support the IDB’s projects that provide childhood care, education and facilitated access to jobs. Therefore, becoming the sole investor to provide financial support to EYE projects through these Bonds is socially significant for the Company. We also believe the Mexican Peso-denominated bonds offer solid and attractive investment opportunity,” said Kazuyuki Shigemoto, General Manager of Dai-ichi Life’s Global Fixed Income Investment Department.
“Crédit Agricole CIB is delighted to have arranged this transaction which underlines the leadership of both Dai-ichi Life and the IDB in developing ESG investing in Japan. This trade also highlights the trend of globalization of SRI investments – with a committed Japanese investor lending support through the IDB to Education, youth and employment projects,”said Tanguy Claquin, Head of Sustainable Banking.
Bond Summary Terms
Inter-American Development Bank
MXN 800,000,000 (approximately $50 million)
22 July 2015
Coupon payment dates:
Annual, every 22 July, beginning 22 July 2016 up to and including maturity date
22 July 2020
London Stock Exchange
Crédit Agricole CIB
About the Inter-American Development Bank
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.
About Dai-ichi Life
The Dai-ichi Life Insurance Company is a leading life insurance firm based on Japan with assets of more than 35 trillion yen. Since its foundation in 1902, the Dai-ichi Life Group has contributed to local communities by providing life insurance, property and casualty insurance, investment trust and related services.
About Crédit Agricole Corporate and Investment
Crédit Agricole Corporate and Investment (CACIB) is the corporate and investment banking arm of the Crédit Agricole Group, the world’s eighth largest bank measured by total assets. CACIB offers its clients a comprehensive range of products and services in capital markets, investment banking, structured finance and corporate banking. CACIB provides support to clients in large international markets through its network with a presence in major countries in Europe, America, Asia and the Middle East.
- John Ferriter