The Inter-American Development Bank(“IADB” or “IDB”), rated Aaa/AAA (Moody’s/S&P), priced a new $600 million 5-year global floating rate note.
The transaction pays a quarterly floating rate coupon of 3 month USD LIBOR + 7 bps and matures on July 15, 2022.
This transaction is the IDB’s first floating rate benchmark transaction of 2017, and is the second largest floating rate transaction for any US-member supranational this year. The new July 2022 Floating Rate Note adds a new liquid reference point in the 5-year part of IDB’s curve complementing and extends the maturity profile.
The size of the transaction, originally announced as $500 million, was increased to $600 million on the back of an oversubscribed order book. There was strong investor demand with 25 accounts participating across a broad geographic spectrum and well-diversified investor base. The strength of the order book was underscored by the high participation from North American fund managers and Official Institutions, and selected Central Banks.
Central Banks/ Official Institutions
Pension Funds / Insurance / Corp
Information on bonds for investors is available on the IDB web site at http://www.iadb.org/investors.
Bond Summary Terms:
Inter-American Development Bank (TickerIADB)
Aaa/AAA (Moody’s /S&P)
Global SEC Exempt
20 June 2017 (T+5)
3m$L + 7bps, Act/360 (short first to 15 Jul 17)
Quarterly on 15 January, April, July, and October each year, with a short first coupon payment on 15 July 2017, up to and including the Maturity Date. The short first coupon will be calculated using an interpolation between 1W and 1M LIBOR
3mo USD LIBOR Definition:
3 Month USD LIBOR will fix two London Business Days prior to the Coupon Payment Period Reference Reuters Page LIBOR01
15 July 2022 (5 year)
New York, London
London Stock Exchange’s Regulated Market
DTC, Euroclear, Clearstream
BMO Capital Markets, Citi, Wells Fargo Securities
ISIN / CUISIP:
45818WBP0 / US45818WBP05
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.
- John Ferriter