The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), today priced a new $3.75 billion 3-year global bond.
The transaction pays a semi-annual coupon of 1.625 percent and matures on May 12, 2020. Priced with a spread of +23.75 basis points over the UST 1.625 percent March 2020, this represents a yield of 1.704 percent s.a.
This transaction is the IDB’s second public benchmark transaction of 2017, following a successful 5-year outing in January. With the addition of today’s new 3-year transaction, the IDB has completed $9.2 billion of an estimated $18.5 billion program for 2017.
The new May 2020 refreshes the 3-year part of IDB’s curve and compliments the existing maturity profile – adding another liquid reference point to fill the maturity gap between their $1.5 billion 3.875 percent Feb 2020 (an old 10-year) and $2.25 billion 1.875 percent June 2020 global bonds (old 5-year).
The transaction was well oversubscribed, in excess of $5.35 billion and with 88 accounts participating across a broad geographic spectrum and well-diversified investor base. The strength of the orderbook was underscored by the high participation of central bank/official money investors, who accounted for 61 percent of the final allocation.
“We were delighted to see how quickly and strongly the book built during New York hours, especially with domestic fund managers and official institutions. This momentum continued during Asian and European hours and allowed us to issue the largest ever IDB bond in the primary market. There were 88 investors participating, which is also another record for an IDB bond,” said Laura Fan, Head of Funding at the IDB.
Europe/Middle East/Africa 17%
Asia Pacific 35%
By Investor Type
Asset Managers 21%
Central Banks/Official Institutions 61%
Pension Funds/Insurance 3%
Bond Summary Terms:
Inter-American Development Bank (Ticker IADB)
USD 3.75 billion
12 April 2017 (T+5)
Coupon payment dates:
12 November and 12 May (semi-annual)
12 May 2020
Mid-Swaps -6 /CT3 +23.75
London Stock Exchange
Fedwire, Euroclear, Clearstream
Joint lead managers:
CITI, DB, NOMURA, RBC CM
BAML, BNPP, Barclays, Goldman Sachs, HSBC, JPM, Mizuho, Morgan Stanley, NatWest Markets, Toronto Dominion
ISIN / CUISIP:
US4581X0CX43 / 4581X0CX4
About the IDB
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.
- John Ferriter