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