IDB Invest Issues Decarbonization Bond for Green Private Sector Projects
IDB Invest placed a 68 million Australian Dollar, equivalent to $49 million, 10-year fixed rate decarbonization bond, to support the IDB Group’s Climate change action plan.
The issue is based on the concept of decarbonization as the process of reducing the "carbon intensity" per unit of production. In general terms, this is achieved by implementing energy management actions, shifts to renewable energy generation, optimization of production processes and waste management, among others.
IDB Invest is the private sector institution of the Inter-American Development Bank (IDB) Group rated Aa1/AA+/AAA. Its activities are guided by the IDB Group’s Institutional Strategy, joint Country Strategies and the IDBG 2025 Vision, with the fight against climate change as one its pillars. IDB Invest is committed to complement tracking of their financial contributions to climate action with a new approach focused on consistent support for long-term decarbonization and climate resilience efforts.
Sumitomo Life insurance is the sole investor in the bond, with Daiwa acting as lead manager. This is the second green bond issued by IDB Invest under the Sustainable Debt Framework launched in February this year. Since then, IDB Invest has issued US$1.6 billion under the framework, including one sustainability benchmark bond, two social bonds and one green bond.
Transaction Summary
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Issuer: |
Inter-American Investment Corporation (IDB Invest) |
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Issuer rating: |
Aa1 / AA+ / AAA (Moody’s / S&P / Fitch) |
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Format: |
Reg S |
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Amount: |
AUD 68.0 million |
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Settlement date: |
Sept 29, 2021 |
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Coupon: |
1.749% |
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Maturity date: |
Sept 29, 2031 |
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Issue price: |
100.00% |
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Listing: |
Not Listed |
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Clearing systems: |
Euroclear and Clearstream |
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lead manager: |
Daiwa |
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ISIN |
XS2391894404 |
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 $13.1 billion in assets under management and 385 clients in 26 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Information on IDB Invest bonds is available at https://idbinvest.org/en/investors
Contacts
Ana Lucia Escudero
202- 623-1919
analuciae@iadb.org