IDB Launches $1.0 Billion 5-year SOFR Index-Linked Global Sustainable Development Bond

The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA (Moody’s/S&P), priced a new $1.0 billion 5-year SOFR Index-Linked Global Sustainable Development Bond.

The transaction pays a quarterly coupon of compounded SOFR +37 basis points, matures on August 1, 2029 and final books closed above $1.1 billion. This transaction represented IDB’s first SOFR index-linked benchmark of the year and was issued under the IDB's recently updated Sustainable Development Bond Framework.

"We have been monitoring the market for some time and felt that this window provided the last issuance opportunity prior to the summer lull." said IDB Head of Funding, Laura Fan. "We went ahead and successfully issued our second $1 billion 5-year SOFR FRN in Sustainable Development Bond format.  This trade underscores our commitment as an active issuer in the SOFR FRN market." added.

Investor Distribution:

Bond Summary Terms:

Joint Lead Manager Quotes:

"First fixed, then floating, IDB has proven its ability to be nimble this July. Its first FRN of 2024, the $1 billion outcome matched the largest 5-year FRN of the year, while taking IDB to over 80% completion with its targeted calendar year borrowing program. BMO was thrilled to partner with IDB and the diverse FRN investor base to deliver this impressive Sustainable Development Bond." Sean Hayes, Global Head of Syndicate, BMO Capital Markets.

“Congratulations to the IDB on their first FRN Global benchmark of 2024. This new 5 year refreshes the IDB FRN curve and reinforces the IDB’s position as a consistent and regular issuer of FRN paper. BofA was delighted to support the IDB in this transaction.” Kamini Sumra, Managing Director, SSA DCM at BofA Securities.

“Scotiabank was pleased to serve as a joint bookrunner for IDB’s first FRN benchmark under its updated SDB Framework.  The high-quality orderbook of investors involved in this optimally-timed transaction underscores the IDB’s top credit quality and sustainable development purpose. Congratulations to the team on today’s transaction!” Cesare Roselli, Global Head of SSA (Sovereign, Supranational, and Agency) Origination at Scotiabank.
 

Information on bonds for Investors is available on the IDB website: https://www.iadb.org/investors

*This press release is not an offer for sale of the securities of the Inter-American Development Bank. Any offering of IDB securities will be made only by means of a prospectus or other definitive offering document that contains important information about the securities, the offering and IDB. Offerings of securities will be made only in compliance with applicable laws.