4BPS TIGHTER + 1.25BN EXCESS USD 2.5YR SSA AAA DEMAND FOR IDB INVEST

30 September 2024 10:04

IDB Invest Issues $750 Million Global Bond for Development Projects in Latin America and the Caribbean

IDB Invest, the IDB’s private sector institution rated Aa1/AA+/AAA, priced a new $750 million 2.5-year bond under its Global Debt Program.

The bond pays a semi-annual coupon of 3.625% and was priced at SOFR mid-swaps plus 35 basis points, equal to a yield of 3.678%, 18.5 basis points over the 3-year U.S. Treasury bond. BNP Paribas, Deutsche Bank, HSBC and Scotiabank acted as joint bookrunners on the deal. The bond matures on February 17th, 2027.

IDB Invest announced the transaction at the New York Stock Exchange open on Monday, amidst a crowded new issue window. The transaction received strong reception from the outset, attracting indications of interest (IOIs) more than $1.6 billion by the time books officially opened the following morning. The orderbook continued to see momentum throughout the day, with orderbooks peaking more than $2.3 billion, allowing IDB Invest to tighten final pricing by 4 basis points with limited price sensitivity and successfully launch a $750 million-sized long 2-year bond.

The transaction was driven by a large book of high-quality demand, as reflected by the 79% final allocation by Central Banks & Official Institutions. The orderbook closed with over 45 investors putting in orders for more than $2 billion, more than 2.6-times oversubscribed, which is a testament to the strong engagement with the investor community and to the performance of IDB Invest’s bond issues over the recent years.

The new deal is IDB Invest’s fourth public bond issuance in 2024, following a $1 billion 5-year benchmark in February, an MXN 2.5 billion bond in March, and a record-sized AUD 600 million green 5-year bond in May.

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 pleased with the response by investors to this issuance, marking IDB Invest’s return to the U.S. dollar market after the historic decision made by our Board of Governors in Punta Cana in March to increase our paid-in capital by an additional $3.5 billion. The success of the issuance reflects investor confidence in IDB Invest, our strength as a multilateral issuer,  and our unwavering commitment to scaling impact in Latin America and the Caribbean through the private sector,” said Orlando Ferreira, the Chief Financial Officer of IDB Invest. 

Investor Distribution 

Transaction Summary