IDB Invest launches USD 1 billion benchmark bond to strengthen support for COVID-19 response

IDB Invest launches USD 1 billion benchmark bond to strengthen support for COVID-19 response

PR Newswire

WASHINGTON, July 15, 2020

WASHINGTON, July 15, 2020 /PRNewswire/ -- IDB Invest, the IDB Group's private sector institution, rated Aa1/AA/AAA, raised USD 1 billion in funding through a fixed rate benchmark issue to support its coronavirus response. This represents its second fixed rate benchmark issue of 2020, following a USD 1 billion 2-year COVID-19 response bond priced in April this year.

IDB Invest, the IDB Group’s private sector institution, rated Aa1/AA/AAA, raised USD 1 billion in funding through a fixed rate benchmark issue to support its coronavirus response.

The three-year bond pays an annual coupon of 0.50% and priced at mid-swaps plus 29 basis points, equivalent to 33.75 basis points above the 3-year U.S. Treasury. Bank of Montreal, Citigroup, Goldman Sachs and TD Securities acted as joint bookrunners on the deal.

The transaction experienced strong demand with 51 investors across the globe participating and orders totaling more than USD 1.55 billion. The high level of demand reflects investors' interest in IDB Invest's sustainable development mission, strong credit profile and support for coronavirus alleviation in the private sector.

Central banks and official institutions took the lion share of the allocations at 75%, followed by fund managers (14%), bank/private banks (7%) and insurance/pension accounts (4%). The investor base was very well diversified geographically, with the Americas making up 38% of the demand, EMEA 37% and Asia 25%.

Investor Distribution

Distribution by Geography

%

Distribution by Investor Type

%

Asia

25

Central Banks / Official Institutions

75

EMEA

37

Fund Managers

14

Americas

38

Banks / Private Banks

7



Insurance / Pension

4

Transaction Summary

Issuer:

Inter-American Investment Corporation (IDB Invest)

Issuer rating:

Aa1 / AA / AAA (Moody's / S&P / Fitch)

Format:

Reg S

Amount:

USD 1.0 billion

Settlement date:

July 21, 2020

Coupon:

0.50% p.a.

Maturity date:

July 21, 2023

Issue price:

99.959%

Issue yield:

0.513%s.a. / 0.514% ann.

Listing:

London Stock Exchange

Clearing systems:

Euroclear and Clearstream

Joint lead managers:

Bank of Montreal, Citigroup, Goldman Sachs and TD Securities

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 $12.1 billion in asset management and 333 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.

Contacts

Ana Lucia Escudero
202- 623-1919
analuciae@iadb.org

The only way to build the future is to invest in it.

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