IIC launches its largest issue in the Eurobond market
US$ 500 million 3-year Floating Rate Note
The Inter-American Investment Corporation (“IIC”), rated Aa1/AA/AAA (Moody’s/S&P/Fitch), today issued its largest note with a new USD 500 million RegS 3-year Floating Rate, under its EMTN Program.
The new issue carries a coupon of 3 month USD Libor plus 30 basis points and will mature on 26 April 2019. Citigroup, Deutsche Bank, Goldman Sachs International and JPMorgan acted as joint-bookrunners on the deal.
This transaction represents the IIC’s third issue in the Eurobond market after the successful 3-year US$400 million floating rate note issued in September 2014 and the inaugural 3-year US$350 million floating rate note issued in November 2012 and $50million tap. Following this transaction, the IIC has completed 50% of its US$1 billion funding target for 2016. This is the first IIC issue following the IDB Group’s private sector reorganization.
The final order book was oversubscribed with participation from 23 different investors across the globe and with orders totaling over US$500 million. This represents a clear signal from the investor community in support of the IIC. The superior quality of the demand allowed IIC to comfortably launch a US$500 million 3-year floating rate note at the tighter end of the price guidance.
The final distribution of the transaction is reflective of the strong support the IIC has gained following its recent ratings upgrade to Aa1 by Moody’s, with global central banks and official institutions taking up the lion’s share of allocation in the deal.
Investor Distribution:
| By Geography | By Investor Type | ||
|---|---|---|---|
| Europe | 45% | Central Banks/Official Institutions | 73% |
| Americas | 32% | Insurance/Corporates | 11% |
| Middle East & Africa | 19% | Asset Managers | 10% |
| Asia Pacific | 4% | Banks | 2% |
About the Inter-American Investment Corporation (IIC)
The Inter-American Investment Corporation (IIC), a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting the private sector in Latin America and the Caribbean. The IIC finances sustainable enterprises to achieve financial results that maximize social and environmental development for the region. With a current portfolio of $7 billion under management and 330 clients in 20 countries, the IIC works across sectors to provide innovative financing and advisory services that meet the evolving demands of its clients. Website: www.iic.org
Bond Summary Terms:
| Issuer: | Inter-American Investment Corporation (Ticker IICORG) |
| Issuer rating: | Aa1 / AA / AAA (Moody’s / S&P / Fitch) |
| Format: | Reg S registered |
| Amount: | USD 500 million |
| Settlement date: | 27 April 2016 |
| Coupon: | 3m$L+30bps, Quarterly, Act/360, short first |
| Maturity date: | 26 April 2019 |
| Issue price: | 100% |
| Spread: | 3m$L+30bps |
| Listing: | London Stock Exchange |
| Clearing systems: | Euroclear and Clearstream |
| Joint lead managers: | Citigroup, Deutsche Bank, Goldman Sachs International and JPMorgan |
| ISIN: | XS1400942006 |
Contact: Eusebio Garre Chief Financial Officer, IIC
Email: eusebiog@iadb.org