WASHINGTON – IDB Invest, the private sector arm of the IDB Group, successfully returned to the FRN market, raising US$500 million in a 3-year Floating Rate Note under its Global Debt Program.

The transaction, IDB Invest’s first USD floater since 2022 and its second USD transaction of the year, further strengthens IDB Invest's presence in the U.S. dollar market and broadens its offering to global investors through a floating-rate instrument. The note pays a quarterly coupon of daily compounded SOFR plus 32 basis points and matures on October 29, 2029.

Amid ongoing volatile market conditions, IDB Invest strategically issued a floating-rate benchmark, meeting demand for high-quality, liquid floating-rate assets and achieving broad distribution across regions and investor categories.

Investors from EMEA and the America’s took the lion’s share of the allocated demand (50% and 42% respectively), while Asia contributed with 8% to the final allocations. By investor type, Asset Managers & others led the way taking 44%, supplemented by central banks and official institutions (28%) and bank treasuries (28%).

The issuance complements IDB Invest's existing U.S. dollar curve and supports its diversified funding strategy as the institution continues to mobilize resources from international capital markets to finance private-sector development across Latin America and the Caribbean.

This successful transaction reflects IDB Invest's strong credit profile, established presence in international markets, and focus on supporting private sector development in Latin America and the Caribbean.

National Bank of Canada, Nomura, Scotiabank, and Wells Fargo Securities were the joint bookrunners on the deal.

“We are very proud to return to the floating-rate market. The strong reception for this transaction underscores the value of offering investors diversified ways to engage with IDB Invest. By expanding our presence in this segment, we are responding to investor demand while mobilizing resources to support private-sector growth and development across Latin America and the Caribbean,” said Orlando Ferreira, Chief Financial Officer of IDB Invest. said Orlando Ferreira, Chief Financial Officer of IDB Invest.

“We were delighted to support IDB Invest on its successful 3-year USD FRN. The transaction reflects the continued progress of its funding platform and highlights the many opportunities ahead as IDB Invest further develops its presence across markets and investor channels. NBF was proud to partner with IDB Invest on this transaction and looks forward to supporting the continued development of its program!” said Scott Graham, Head of International Government Finance, National Bank of Canada Capital Markets. 

“With the pricing of this new USD 500 million 3-year FRN benchmark, IDB Invest marked its return to the FRN market. The issuance delivers valuable liquid benchmark offerings meeting strong demand for high-quality, liquid floating-rate assets at a time of ongoing market volatility and elevated primary market activity. Congratulations from Nomura," said Mark Yeomans, Managing Director, Nomura

“Congratulations to IDB Invest on its successful US$500 million SOFR Floating Rate Note, representing its return to the USD floating-rate market after a three-year hiatus. The high-quality and geographically diverse orderbook highlights the strong support that IDB Invest continues to receive from investors globally and demonstrates the depth of demand for high-quality SSA floating-rate assets. Scotiabank was pleased to support this issuance,” said Cesare Roselli, Global Head of SSA Origination at Scotiabank,” said Cesare Roselli, Global Head of SSA origination, Scotiabank

“Congratulations to the IDB Invest team on its return to the USD floating-rate market with a new 3-year benchmark, marking the issuer’s first USD floater since 2022 and its only outstanding USD floating-rate line. Announcing the transaction on a will-not-grow basis gave investors size certainty from the outset and supported a disciplined execution, while re-establishing a USD reference point in the floating-rate sector. Wells Fargo Securities is proud to have acted as JLM and B&D agent in support of IDB Invest’s mandate to mobilize private capital across Latin America and the Caribbean,” said Carlos Perezgrovas, Head of SSA Origination, Wells Fargo Securities  

Terms of Transaction 

About IDB Invest 

IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $22 billion in assets under management and more than 440 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website: www.idbinvest.org/en.