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IDB Invest Prices Record-Sized Kangaroo Green Bond


  • Two years after its last benchmark in the Australian market, IDB Invest returns with its largest bond in Australian dollars to date


IDB Invest, the IDB Group’s private sector institution rated Aa1/AA/AAA, raised AUD$600 million in funding through a 5-year fixed rate green bond. This is IDB Invest’s third public benchmark in the Australian market and its largest kangaroo bond to date. 


The net proceeds of the bond will be used to finance eligible projects under the green project categories, in accordance with IDB Invest's Sustainable Debt Framework.


The bond pays a semi-annual coupon of 4.650% and priced at semi-quarterly asset swap plus 52 basis points, equivalent to 69 basis points above the 5-year Australian Government bond and a semi-annual yield of 4.685%. Deutsche Bank, Nomura and TD Securities acted as joint bookrunners on the deal.


The transaction experienced strong demand totaling over AUD$630 million, and 68% of the issue was allocated to investors who incorporate ESG considerations in their investment decisions. 


The high quality orderbook is a testament of the trust that investors have in IDB Invest’s commitment to its climate agenda through its Sustainable Debt Framework. Since 2023, IDB Invest has committed to align 100% of its new projects to Paris Agreement goals, and within the new IDB Group Institutional Strategy, IDB Invest has committed that at least 60% of new financings will support the climate and nature positive agendas.


Orlando Ferreira, IDB Invest’s Chief Financial Officer, said: “We need to continue working to reach net-zero emissions. Since 2021, IDB Invest has issued over $6 billion in sustainable debt, aimed at fostering sustainable development in Latin America and the Caribbean. Our new kangaroo green bond underscores our commitment to leveraging global capital markets to drive impactful development and address the ongoing climate crisis."


The bond issuance complements IDB Invest's outstanding bonds maturing in 2026 and 2027, extending its curve in the Kangaroo market to 2029.


Central bank and official institutions contributed to 80% of the final allocations, followed by Asset Managers/Pensions (20%). 


This is IDB Invest’s 9th green bond issued under its Sustainable Debt Framework. The 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 $5 billion of green, social and sustainability bonds to date.


Investor Distribution

Distribution by Geography Distribution by Investor Type 
EMEA83%Central Banks / Official Institutions80%
Asia / Pacific11%Asset Managers / Pensions20%


Transaction Summary

Issuer:Inter-American Investment Corporation (IDB Invest)
Issuer rating:Aa1/AA+/AAA (Moody's/S&P/Fitch) (stable/stable/stable)
Format:Australian Debt Issuance Program
Amount:AUD 600,000,000
Settlement date:5/21/2024
Coupon:4.650%  p.a.
Maturity date:5/21/2029
Issue price:99.846%
Issue yield:4.685%
Clearing systems:Austraclear
Joint lead managers:Deutsche Bank, Nomura and TD Securities


Lead Managers’ Quotes

"An impressive return to the Kangaroo market for IDB Invest following a 2-year absence, marked with their largest ever AUD benchmark trade of AUD$600 million. A testament to the global investor work that IDB Invest have been undertaking and a great result following their recent capital increase, further demonstrating their commitment to sustainability in capital markets with this green bond,” said Ally Goddard, TD Securities.


“IDB Invest once again successfully leveraged their Sustainability framework to secure a welcomed return to the Kangaroo market, with AUD$600 million 5Y Green bond marking their largest benchmark to date. The deal's success is a testimony to IDB Invest's strategic approach to the market, diligent marketing, investor appeal and strength of their sustainable mandate,” said Mark Yeomans, Nomura. 


“We are proud to have once again guided IDB Invest to return to the AUD market and issue their largest ever Kangaroo bond, by successfully tapping into global investor demand for highly rated green product. The issuer’s measured approach and investor engagement enabled them to execute the transaction smoothly despite a very busy primary market,” said Alix Kennedy, Vice President, Deutsche Bank.


About IDB Invest

IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the social and 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 $21 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's Investors page