A. M. The Inter-American Development Bank (IDB) announced the successful launch of a new $3 billion 10-year Global Sustainable Development Bond. This issue, rated Aaa/AAA by Moody’s and S&P, is one of the institution’s most outstanding in this maturity category.
The bond will pay a semi-annual coupon of 4.375% and will mature on july 16, 2035. It was priced at a spread of 61 basis points over SOFR mid-swaps, equivalent to 6.93 basis points over the U.S. Treasury bond maturing in May 2035. This transaction closed with demand more than US$8.3 billion, including US$550 million of interest from the joint lead arrangers (JLM).
The head of the IDB’s Funding Unit, Laura Fan, highlighted the success of the operation, noting that it is the largest order book ever reached by the institution for a 10-year bond. “The strong demand allowed us to extend the issuance beyond what was initially planned. The record spread achieved is evidence of the confidence that investors place in the IDB and our development mission”, she said.
The bond was purchased by a wide range of international investors, demonstrating the IDB’s strength in the global market and its reputation as a reliable issuer of sustainable financial instruments. The geographic diversity of the placement also reinforces the organization’s appeal to global players committed to responsible investment.
With this issuance, the IDB reinforces its role as one of the leading multilateral financial institutions dedicated to the economic and social progress of Latin America and the Caribbean, reaffirming its commitment to sustainable development and financial stability in the region.
