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IDB Invest Expands its Presence in the Euro Market with a 7-year Benchmark Bond

May 31, 2023
  • With over EUR1 billion demand, investors welcomed IDB Invest’s second issue in the Euro market as the issuer extends its benchmark maturities to seven years

 

IDB Invest, the IDB Group’s private sector institution rated Aa1/AA+/AAA, raised EUR500 million through a 7-year, fixed-rate benchmark bond. This is IDB Invest’s second euro-denominated bond and its longest benchmark bond to date.

The seven-year bond pays an annual coupon of 3.125% and is priced at mid-swaps plus 21 basis points, equivalent to 97.3 basis points over the yield of the February 2030 German government bond. Deutsche Bank, DZ Bank, HSBC and TD Securities acted as joint bookrunners on the deal.

Demand for the transaction was strong, with over 40 investors putting in orders for more than EUR1 billion (including EUR75 million joint lead manager interest). Banks and central banks/official institutions took the majority of allocations (49% and 33% respectively), with the remainder going to asset managers (11%), insurance/pension funds (6%) and other investors (1%). Investor demand was well-diversified in terms of geography, with participation split between Germany/Austria/Switzerland (25%), the UK/Ireland (23%), Benelux (14%), Other Europe/MEA (11%), Asia (10%), Italy (9%), the Nordics (6%) and France (2%).

IDB Invest’s second bond in the Euro market furthers its commitment to deliver Euro investors opportunities to invest in economic growth, social inclusion and sustainable development in Latin America and the Caribbean.

Investor Distribution

 

Germany/Austria/Switzerland

25%

Banks

49%

UK/Ireland

23%

Central Banks / Official Institutions

33%

Benelux

14%

Asset Managers

11%

Other Europe / MEA

11%

Insurance / Pension Funds

6%

Asia

10%

Other

1%

Italy

9%

 

 

Nordics

6%

 

 

France

2%

 

 

 

Transaction Summary

Issuer:

Inter-American Investment Corporation (IDB Invest)

Issuer rating:

Aa1/AA+/AAA (Moody's/S&P/Fitch) (all three with a stable outlook)

Format:

Global Debt Program

Amount:

EUR 500 million

Settlement date:

June 7, 2023

Coupon:

3.125% p.a.

Maturity date:

June 7, 2030

Issue price:

99.820%

Issue yield:

3.154%

Listing:

London Stock Exchange

Clearing systems:

Euroclear and Clearstream

Joint lead managers:

Deutsche Bank, DZ Bank, HSBC 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 $15.3 billion in asset management and 375 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 our Investors page.