IDB Invest launches $1 billion benchmark bond to strengthen support for COVID-19 response
IDB Invest, the IDB Group’s private sector institution, rated Aa1/AA/AAA, raised $1 billion in funding through a fixed rate benchmark issue to support its coronavirus response. This represents its second fixed rate benchmark issue of 2020, following a $1 billion 2-year COVID-19 response bond priced in April this year.
The three-year bond pays an annual coupon of 0.50% and priced at mid-swaps plus 29 basis points, equivalent to 33.75 basis points above the 3-year U.S. Treasury. Bank of Montreal, Citigroup, Goldman Sachs and TD Securities acted as joint bookrunners on the deal.
The transaction experienced strong demand with 51 investors across the globe participating and orders totaling more than $1.55 billion. The high level of demand reflects investors’ interest in IDB Invest’s sustainable development mission, strong credit profile and support for coronavirus alleviation in the private sector.
Central banks and official institutions took the lion share of the allocations at 75%, followed by fund managers (14%), bank/private banks (7%) and insurance/pension accounts (4%). The investor base was very well diversified geographically, with the Americas making up 38% of the demand, EMEA 37% and Asia 25%.
This bond issuance will contribute to funding IDB Invest’s corporate response to the coronavirus pandemic and follows its April announcement to direct up to $7 billion for companies in Latin America and the Caribbean impacted by the pandemic.
Investor Distribution
|
Distribution by Geography |
% |
Distribution by Investor Type |
% |
|
Asia |
25 |
Central Banks / Official Institutions |
75 |
|
EMEA |
37 |
Fund Managers |
14 |
|
Americas |
38 |
Banks / Private Banks |
7 |
|
|
|
Insurance / Pension |
4 |
Investor Distribution
|
Issuer: |
Inter-American Investment Corporation (IDB Invest) |
|
Issuer rating: |
Aa1 / AA / AAA (Moody’s / S&P / Fitch) |
|
Format: |
Reg S |
|
Amount: |
USD 1.0 billion |
|
Settlement date: |
July 21, 2020 |
|
Coupon: |
0.50% p.a. |
|
Maturity date: |
July 21, 2023 |
|
Issue price: |
99.959% |
|
Issue yield: |
0.513%s.a. / 0.514% ann. |
|
Listing: |
London Stock Exchange |
|
Clearing systems: |
Euroclear and Clearstream |
|
Joint lead managers: |
Bank of Montreal, Citigroup, Goldman Sachs 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 $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. Information on IDB Invest bonds is available at: https://idbinvest.org/en/investors