IDB Invest Issues Blue Bond to Finance Water Projects in Latin America and the Caribbean

IDB Invest, rated AAA/Aa1/AA+, priced a 20-year AUD 50 million blue bond due November 2042. T&D Financial Life Insurance Company is the sole investor of the bond, that was led by Nomura. This is IDB Invest’s third blue bond under its Sustainable Debt Framework.

The proceeds will finance private sector projects that contribute to the UN Sustainable Development Goal 6, Clean Water and Sanitation, and will promote the sustainable use of water resources for economic growth, improved livelihoods, and jobs, as well as ocean conservancy. Blue bonds can provide financing to a range of companies that have a positive impact, including companies located near bodies of water, land-based companies that support ocean ecosystem health, and water and sanitation projects.

Blue bonds are uniquely relevant to the Latin America and the Caribbean region, with much of its population living in coastal areas. The Caribbean is home to 23 small and island countries surrounded by coastlines and is especially vulnerable to the effects of climate change. With this second blue bond, IDB Invest continues to promote a groundbreaking approach to financing climate action and attracting new investors to the region.  

This bond extends the series of IDB Invest’s green and blue bonds issued for Japanese life insurance companies, highlighting their support for IDB Invest’s commitment to climate action.

As the COP27 conference is held in Egypt, blue bonds are emerging as an innovative way to fund ocean and water-related solutions, create sustainable business opportunities, and signal responsible ocean stewardship to the market.

 

Transaction Summary

 

Issuer:

Inter-American Investment Corporation (IDB Invest)

Issuer rating:

Aa1 / AA+ / AAA (Moody’s / S&P / Fitch)

Format:

Australian Debt Issuance Program

Amount:

AUD 50,000,000

Settlement date:

November 17, 2022

Coupon:

4.90% 

Maturity date:

November 17, 2042

Issue price:

100%

Listing:

Not Listed

Clearing systems:

Austraclear

Lead manager:

Citibank 

 

About IDB Invest

IDB Invest, the private sector arm of the IDB Group, is a multilateral development bank focused on improving the lives of those in its emerging markets member countries. We finance projects to advance clean energy, sustainability and create economic growth and social inclusion in Latin America and the Caribbean. With a portfolio of $15.3 billion in assets under 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.