The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA, has priced a new 3-tranche Uridashi fixed-rate note under its Education, Youth and Employment (EYE) Bond Program.
The notes are denominated in Brazilian reais (3-year tenor), Indian rupees (5-year tenor) and Turkish liras (3-year tenor), and constitute the first such sale of EYE Bonds denominated in these currencies to retail investors in Japan. The notes are due for sale to investors on October 28, 2015. Nomura Securities Co., Ltd. is the sole arranger of the bonds.
The IDB segregates the proceeds from EYE bonds in a separate sub-account, disbursing funds only to education, youth or unemployment projects which fulfill specific criteria.
Nomura has a strong track record in the sustainable financing sector, promoting financial products which not only generate a return on investment, but also address social and environmental issues. Through the sale of the IDB’s EYE Bonds, Nomura serves as a conduit for investors who wish to contribute to society through their investments and support development projects in Latin America and the Caribbean.
Bond Summary Terms
Inter-American Development Bank
BRL 55.65m / TRY 38.12m / INR 449m
(approximately $34 million equivalent)
27 October 2015
Settlement date to Japanese Investors:
11.02% (BRL) / 9.40% (TRY) / 5.43% (INR)(Semi Annual)
25 October 2018 (BRL & TRY) / 27 October 2020 (INR)
BRL 10,000 / TRY 10,000 / INR 100,000
XS1303493230 / XS1303494394 / XS1303494980
“The EYE bond reflects IDB’s mission of improving lives in Latin America and the Caribbean with focus on three key priority areas – Education, Youth, Employment. We are delighted to learn that Japanese retail investors have a strong interest and desire to support social and economic development projects in Latin America and the Caribbean,” said Laura Fan, Head of Funding at the IDB.
“The IDB EYE bond program represents a gold standard in social development issuance programs in the debt capital markets. Nomura are delighted to leverage our expertise with the Japanese retail investor base to facilitate investment in this worthwhile cause and look forward to future involvement in the program,” said Spencer Dove, Managing Director, Debt Capital Markets, Sovereigns Supranational and Agencies at Nomura International PLC.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source oflong-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.
Since becoming the first Asian member country of the IDB in 1976, Japan has been involved in IDB projects through a number of funds and programs.
Nomura is an Asia-based financial services group with an integrated global network spanning over 30 countries. By connecting markets East & West, Nomura services the needs of individuals, institutions, corporates and governments through its three business divisions: Retail, Asset Management, and Wholesale (Global Markets and Investment Banking). Founded in 1925, the firm is built on a tradition of disciplined entrepreneurship, serving clients with creative solutions and considered thought leadership.
- John Ferriter