IDB Invest, the IDB Group’s private sector institution (Aa1/AA/AAA), raised a record $1 billion in funding to support the development bank’s coronavirus response. This marks the largest fixed rate benchmark issue by IDB Invest.
The two-year bond pays an annual coupon of 0.75% and matures on May 4th, 2022. BMO, Citigroup, HSBC and JP Morgan acted as joint-bookrunners on the deal. Investors included mainly central banks as well as financial institutions, asset managers and insurance companies.
More than 30 investors across the globe participated in the successful issuance with orders totaling over $1.1 billion. The transaction represents IDB Invest’s largest public bond issuance and its sixth issue in the Eurobond market.
The high level of demand reaffirmed investor interest in IDB Invest’s sustainable development mission, strong credit profile and support for coronavirus alleviation in the private sector.
This bond issuance will contribute to funding IDB Invest’s corporate response to the coronavirus pandemic and follows its March announcement to direct up to $5 billion for companies in Latin America and the Caribbean impacted by the pandemic.
Investor Distribution
| By Geography | By Investor Type |
| EMEA 47% | Central Banks/Official Institutions 56% |
| Americas 35% | Banks 26% |
| Asia 18% | Asset Managers & insurance Company 17% |
Bond Summary Terms
| Issuer: | Inter-American Investment Corporation, also known as IDB Invest (Ticker IDBINV) |
| Issuer rating: | Aa1 / AA / AAA (Moody’s / S&P / Fitch) |
| Format: | Reg S registered |
| Amount: | USD 1 billion |
| Settlement date: | May 4 2020 |
| Coupon: | 0.75% Annual, 30/360 |
| Maturity date: | 4 May 2022 |
| Issue price: | 99,997% |
| Listing: | London Stock Exchange |
| Clearing systems: | Euroclear and Clearstream |
| Joint lead managers: | BMO, Citigroup, HSBC and JPMorgan |
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.