The Inter-American Development Bank (”IDB”or “IADB”), rated Aaa/AAA, issued a new $50 million 3-year, fixed-rate note under its Education, Youth and Employment (EYE) Bond program. QBE Insurance Group Limited (QBE) is the sole investor in the bond.
The IDB, a pioneer in the realm of social bonds, has been working for decades to improve lives in Latin America and the Caribbean to fund programs in three prioritized areas: Education, Youth, and Employment. Solving the challenges of poverty and inequality in Latin America and the Caribbean requires a multi-faceted, carefully planned approach that coordinates investments in human capital over the course of a lifetime. IDB Projects Eligible for EYE Bond Financing can be found at http://www.iadb.org/en/idb-finance/investors/eye-bond-project-list,19297.html
J.P. Morgan is the sole arranger of the bonds.
“We are very happy to work with QBE on this EYE bond. Their support furthers awareness of how IDB's social sector lending e.g. employment services in Bolivia, job training programs in Mexico and education quality improvement in Belize and Panama, improves lives in Latin America and the Caribbean,” said Laura Fan, the IDB’s Head of Funding.
Gary Brader, Group Chief Investment Officer for QBE, noted “We are delighted to participate in this innovative and impactful program. It is an excellent example of the blending of a very high quality issuer, an appropriate return to the investor, and the overlay of additional social objectives being pursued. This fits very nicely with our Premiums4Good initiative, whereby we undertake to invest a portion of selected customer premiums into assets which are socially or environmentally beneficial. ”
“J.P. Morgan is thrilled to once again bring together socially responsible issuers and investors. We applaud QBE and IDB for their commitment to improving education, youth and employment in Latin America and the Caribbean. We’re especially delighted to be part of this EYE bond as it’s very much in line with our commitment to promoting economic growth and helping people across the globe gain the right skills for tangible opportunities,” said Marilyn Ceci, Managing Director and Head of Green Bonds, J.P. Morgan.
Bond Summary Terms
Inter-American Development Bank
23 September 2016
Coupon payment dates:
Semi-annually on each 23 March and 23 September, commencing on 23 March 2017, to and including Maturity Date
23 September 2019
$200,000 and $1,000 thereafter
J.P. Morgan Securities plc
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 QBE Insurance Group Limited
QBE Insurance Group Limited is listed on the Australian Securities Exchange, is one of the largest global insurance and reinsurance companies and has operations in 37 countries.
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. The world’s most important corporations, governments and institutions entrust us with their business in more than 100 countries. With $20.6 trillion of assets under custody and $444 billion in deposits, the Corporate & Investment Bank provides strategic advice, raises capital, manages risk and extends liquidity in markets around the world. It is also committed to environmental sustainability and has underwritten a total of 109 bonds whose proceeds target Environmental and Social benefits since 2010, with a total of over $12 billion in market share. The firm was a co-author of the Green Bond Principles and currently serves on its Executive Committee.
- John Ferriter