IDB Invest Prices 5-Year $1 Billion Global Benchmark Bond
IDB Invest, the IDB Group’s private sector institution rated Aa1/AA+/AAA, priced a new $1 billion 5-year bond under its Global Debt Program. The issuance is IDB Invest’s first U.S. dollar-denominated transaction this year.
The bond pays a semi-annual coupon of 4.250% and was priced at SOFR mid-swaps plus 51 basis points, equal to a yield of 4.308%, +26.3 basis points over the 5-year U.S. Treasury bond. Bank of Montreal, Deutsche Bank, HSBC and J.P. Morgan acted as joint bookrunners on the deal. The bond matures on February 14, 2029.
The transaction garnered a granular order book of high-quality demand, with over 50 investors putting in orders for more than$2.1 billion, 2-times oversubscribed.
The order book was shared between Central Banks & Official Institutions (72.3%), followed by Fund Managers (21.1%), Banks (5.4%) and insurance / pension funds / other (1.2%), with a diverse geographical distribution; Asia led with 44%, followed by Americas with 39.9% and EMEA with 16.1%.
The success of the transaction 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.
"We are very pleased with the outcome of this issuance that reflects investors’ trust in our strength as a multilateral issuer. Connecting international investors with private sector companies to scale up impact in Latin America and the Caribbean is at the core of our mission,” said Janne Sevanto, Treasurer of IDB Invest.
Investor Distribution
|
Distribution by Geography |
% |
Distribution by Investor Type |
% |
|
Americas |
39.9% |
Central Banks / Official Institutions |
72.3% |
|
EMEA |
16.1% |
Asset Managers |
21.1% |
|
APAC |
44.0% |
Banks |
5.4% |
|
|
|
Insurance / Pension Funds/Other |
1.2% |
Transaction Summary
|
Issuer: |
Inter-American Investment Corporation (IDB Invest) |
|
Issuer rating: |
Aa1/AA+/AAA (Moody's/S&P/Fitch) (all three with a stable outlook) |
|
Format: |
Global Debt Program |
|
Amount: |
USD 1 billion |
|
Settlement date: |
February 14, 2024 |
|
Coupon: |
4.250% s.a. |
|
Maturity date: |
February 14, 2029 |
|
Issue price: |
99.742% |
|
Issue yield: |
4.308% s.a. |
|
ISIN |
US45828Q2D84 |
|
Listing: |
London Stock Exchange |
|
Clearing systems: |
DTC, Euroclear and Clearstream |
|
Joint lead managers: |
Bank of Montreal, Deutsche Bank, HSBC and J.P. Morgan |
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank 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 $16.3 billion in assets under management and 394 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. Information on IDB Invest bonds is available at IDB Invest Investors page.