IDB Invest Prices Inaugural AUD400 Million Social Kangaroo Bond

IDB Invest, the IDB Group’s private sector institution rated Aa1/AA/AAA, raised AUD400 million (equiv. $301.76 million) in funding through a 5-year fixed rate social benchmark bond to support its strategy to reignite growth in Latin America and the Caribbean. This was IDB Invest’s inaugural transaction in the Australian market and its second social bond under its newly released Sustainable Debt Framework.  

The bond pays an annual coupon of 1.10% and priced at mid-swaps plus 30 basis points, equivalent to 41.25 basis points above the 5-year Australian Government bond. Deutsche Bank, Royal Bank of Canada and Toronto Dominion acted as joint bookrunners on the deal.

The transaction experienced strong demand: 22 investors participated with orders totaling over AUD430 million. The high level of demand reflects investors’ interest in IDB Invest’s sustainable development mission, strong credit profile and its Sustainable Debt Framework.

Fund managers took the lion share of the allocations at 64%, followed by central banks and official institutions (24%), and banks (12%). Orlando Ferreira, IDB Invest's CFO, said “We are very pleased with the success of our first outing in the kangaroo market, especially with the high participation of local accounts, very much in line with our goal to keep growing and diversifying our investor base." Eusebio Garre, IDB Invest's Head of Funding, said: "We are glad we structured this issue as a social bond under our Sustainable Debt Framework, since 22% of the bonds went to ESG oriented investors, of which 18% went to Australian ESG investors. We look forward to providing more green, social and sustainability bonds to investors focused on development impact”.

The net proceeds of the bond will be used to finance eligible social projects as defined in the issuer's Sustainable Debt Framework. IDB Invest’s innovative framework is aligned with the Green Bond Principles and Social Bond Principles published by the International Capital Markets Association (ICMA) and has allowed IDB Invest to issue over $1.5 billion of green, social and sustainability bonds to date.

Investor Distribution

Distribution by Geography

 

Distribution by Investor Type

 

Australia

59%

Fund Managers

64%

EMEA

31%

Central Banks / Official Institutions

24%

Asia

10%

Banks / Private Banks

12%

Americas

1%

 

 

 

 

 

 

 

Transaction Summary

Issuer:

Inter-American Investment Corporation (IDB Invest)

Issuer rating:

Aa1/AA/AAA (Moody's/S&P/Fitch) (stable/positive/negative)

Format:

Australian Debt Issuance Program

Amount:

AUD 400,000,000

Settlement date:

6/30/2021

Coupon:

1.10%  p.a.

Maturity date:

6/30/2021

Issue price:

99.673%

Issue yield:

1.1675%

Listing:

London Stock Exchange

Clearing systems:

Austraclear

Joint lead managers:

Deutsche Bank, Royal Bank of Canada and Toronto Dominion

 

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 $13.1 billion in asset management and 385 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 https://idbinvest.org/en/investors

 

Contacts

Ana Lucia Escudero

202- 623-1919

analuciae@iadb.org