IDB Invest raised AUD300 million (equiv. $215.1 million) in funding through a 5-year fixed rate green benchmark bond to support its strategy to reignite growth in Latin America and the Caribbean through sustainable projects.

This is IDB Invest’s inaugural green benchmark in the Australian market and its seventh bond under its Sustainable Debt Framework. IDB Invest is the IDB Group’s private sector institution rated Aa1/AA/AAA.

The bond pays an annual coupon of 2.30% and priced at semi quarterly asset swap plus 32 basis points, equivalent to 58.55 basis points above the 5-year Australian Government bond. Deutsche Bank, JP Morgan and Toronto Dominion acted as joint bookrunners on the deal.

The transaction experienced strong demand: 20 investors placed orders totalling over AUD360 million. The high quality of the orderbook is a testament of the trust that investors have in IDB Invest’s sustainable development mission, strong credit profile and its Sustainable Debt Framework. Central banks and official institutions contributed to 70% of the final allocations, followed by pension funds and insurance companies with 15%.

“We are very pleased with the success of our debut green bond in the kangaroo market, especially with the high quality of the order book, very much in line with our goal to keep growing and diversifying our investor base," said Orlando Ferreira, IDB Invest's Chief Finance Officer. “We look forward to providing more green, social and sustainability bonds to investors focused on development impact.”

The proceeds of the bond will be used to finance green eligible projects as defined in its Sustainable Debt Framework, especially sustainable infrastructure projects.

IDB Invest’s framework is aligned with the Green Bond Principles and Social Bond Principles published by the International Capital Markets Association (ICMA) and has allowed IDB Invest to issue over $1.8 billion of green, social and sustainability bonds to date.

Transaction Summary

Orderbook distribution

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 asset management and 385 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.