LONDON - IDB Invest, the private sector arm of the IDB Group, issued its inaugural £300 million short 5-year Social Benchmark Bond under its Global Debt Program.
This is IDB Invest first sterling-denominated issuance, providing sterling investors the unique opportunity to invest in Latin America and the Caribbean’s private sector through a supranational bond. Demand was robust, with over 20 buyers submitting orders exceeding £525 million. Banks accounted for the largest share of the allocation at 40%, followed by central banks and official institutions at 28%. Fund managers took 22%, pension funds, 5%, and the remaining 5% was placed with insurance companies.
The transaction saw strong participation from the United Kingdom, which accounted for 58% of the allocation. The remainder was well diversified across Europe, the Middle East and Africa (EMEA, 22%), Asia (11%), and the Americas (8%).
“This inaugural sterling transaction marks an important milestone for IDB Invest as we continue diversifying our funding base to better serve Latin America and the Caribbean,” said Orlando Ferreira, CFO of IDB Invest. “The strong demand from high‑quality investors reflects confidence in our credit strength and our mandate to deliver meaningful development impact through the private sector. We are pleased to open a new channel for English investors to participate in the region’s growth story,” he added.
The bond, maturing on 22 October 2030, pays an annual coupon of 4.125% and was priced at SONIA mid-swaps +45 basis points, representing a yield of 4.198% and a spread of 25.3 basis points versus the 0.375% October 2030 Gilt.
BMO Capital Markets, Citi, NatWest, and TD Securities acted as joint bookrunners.
The success of the syndication underscores IDB Invest’s credit strength, track record and mandate as the leading development bank committed to increasing development impact in Latin America and the Caribbean through the private sector.
“Congratulations to IDB Invest on a very successful debut in the GBP market. The inaugural thematic benchmark establishes IDB Invest in the sterling market, with more than GBP 500 million in demand from a global investor base eager to support the important social and sustainability activities of IDB Invest. We are proud to have been involved in this historic outcome” said Massimo Antonelli, Head of International SSA, BMO Capital Markets
“Congratulations to the IDB Invest team on their inaugural Sterling transaction. This new benchmark represents an important milestone in IDB Invest’s continued growth in the capital markets and follows the addition of the United Kingdom as its 48th member country. By entering the Sterling market, IDB Invest broadens its investor reach and further strengthens its ability to scale its impact in the years ahead” said Ebba Wexler, Head of SSA DCM, Citi.
“Congratulations to the IDB Invest team on a highly successful debut in sterling. Opening a new strategic currency is an important milestone and today’s outcome demonstrates the depth of support for IDB Invest among global investors. The transaction not only reflects favourable market conditions, but also reinforces the institution’s growing presence across key funding markets. We are proud to have been involved at NatWest” said Damien Carde, Head of SSA DCM, NatWest.
“We congratulate the IDB Invest team on their successful entry into the GBP market with an impressive inaugural sterling transaction. IDB Invest demonstrated strong conviction and a clear understanding of investor demand. The high quality orderbook underscores the effectiveness of their pricing and sizing strategy, positioning the issuer for lasting success in the GBP market. We are honoured to have supported this milestone transaction, which lays a solid foundation for their continued presence in sterling" said Laura O'Connor, Managing Director, Head of UK DCM, TD Securities.
Investor Distribution
Distribution by Geography | % | Distribution by Investor Type | % |
UK | 58% | Banks | 40% |
EMEA | 22% | Central Banks / Official Institutions | 28% |
Asia | 12% | Asset Managers | 22% |
Americas | 8% | Pension Funds | 5% |
|
| Insurance Companies | 5% |
Transaction Summary
Issuer: | Inter-American Investment Corporation (IDB Invest) |
Issuer rating: | Aa1/AA+/AAA (Moody's/S&P/Fitch) (stable/positive/stable) |
Format: | Global Debt Program |
Amount: | USD 1 billion |
Settlement date: | November 20, 2025 |
Coupon: | 3.625% p.a. |
Maturity date: | November 20, 2028 |
Issue price: | 99.738% |
Issue yield: | 3.718% p.a. |
ISIN | US45828Q2G16 |
Listing: | London Stock Exchange |
Clearing systems: | DTC, Euroclear and Clearstream |
Joint lead managers: | BNP Paribas, BMO, Daiwa and HSBC |
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.