The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new $3 billion 5-year global bond.
The transaction pays a semi-annual coupon of 1.750 percent and matures on September 14, 2022. Priced with a spread of +20.35 basis points over the UST 1.625 percent August 2022, this represents a yield of 1.824 percent s.a.
This transaction is the IDB’s fourth public benchmark transaction of 2017, building upon successfully completed issues across the curve in 3-years (April), 5-years (January) and 10-years (June). With the addition of the new 5-year transaction, the IDB has completed $16.9 billion of an estimated $18.5 billion program for 2017.
The new September 2022 nicely complements the Bank’s existing maturity profile – adding another liquid reference point to fill the maturity gap between the $3.1 billion 1.75 percent April 2022 (issued in April 2015) and the $1 billion 3.00 percent October 2023 Global bonds (issued in September 2013).
The transaction was well oversubscribed, in excess of $4.3 billion and with 73 accounts participating from across a broad geography 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 51 percent of the final allocation.
“We are delighted to see the strong support from over 70 accounts for our last USD global benchmark of 2017. The well-diversified and oversubscribed order book demonstrates the solid interest in IDB credit and the SSA sector as a whole. It’s a great way to complete the IDB’s US dollar global benchmark program for 2017,” said Laura Fan, Head of Funding at the IDB.
By Investor Type
Europe, Middle East & Africa
Central Banks/Official Institutions
Bond Summary Terms
Inter-American Development Bank (Ticker IADB)
Aaa/AAA (Moody’s/S&P) (all stable)
USD 3 billion
14 September 2017 (T+5)
Coupon payment dates:
14 March and 14 September (semi-annual)
14 September 2022
Mid-Swaps +12 /CT5 +20.35
London Stock Exchange
Fedwire, Euroclear, Clearstream
Joint lead managers:
BNPP, GSI, JPM, NOMURA
BAML, BMO, CITI, CACIB, DB, HSBC, MIZUHO, TD, WELLS
ISIN / CUISIP:
US4581X0CZ90 / 4581X0CZ9
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