IDB Invest expands its presence in the European market with a 7-year benchmark bond

2023-06-01 19:03:15

Washington (ots/PRNewswire) – IDB Invest, IDB Group’s private sector institution, rated Aa1/AA+/AAA, has raised €500 million through a benchmark 7-year fixed rate bond. This is IDB Invest’s second euro 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, a premium of 97.3 basis points to the yield on the German government bond maturing in February 2030. Deutsche Bank, DZ Bank, HSBC and TD Securities acted as joint bookrunners on the transaction.

Demand for the transaction was strong, with over 40 investors placing orders for over €1bn (including €75m interest from the joint principal underwriters) The banks and central banks/official institutions made the most allocations (49% or 33%); the rest went to wealth managers (11%), insurance companies/pension funds (6%) and other investors (1%). Investor demand was well distributed geographically, with participation split between Germany/Austria/Switzerland (25%), UK/Ireland (24%), Benelux (14%), Rest of Europe/MEA (11%) and Asia (10%), Italy (9%), Scandinavia (6%) and France (2%).

IDB Invest strives to create opportunities for investments in sustainable development in Latin America and the Caribbean.

distribution of investors
Distribution by geographic location % Distribution by investor type %
Germany/Austria/Switzerland 25 banks 49% %
Great Britain/Ireland 24 central banks / official institutions 33% %
Benelux 14 wealth managers 11% %
Rest of Europe / MEA 11 Insurance companies/pension funds 6%
%
Asia 10 Other 1%
%

Italy 9%

Scandinavia 6%

France 2%

Transaction Summary
Emittent: Inter-American Investment Corporation (IDB
Invest)
Issuer rating: Aa1/AA +/AAA (Moody’s/S & P/Fitch) (all three with a stable outlook)
Format: Global Debt Program

Quantity: 500 million euros

Settlement Date: June 7, 2023

Coupon: 3,125 % pa

Maturity date: June 7, 2030

Issue Price: 99.820%

Issue yield: 3.154%

Listing London Stock Exchange
Abrechnungssysteme: Euroclear und Clearstream
Joint Lead Managers: Deutsche Bank, DZ Bank, HSBC and TD
Securities

About IDB Invest

IDB Invest, a member of IDB Group, is a multilateral development bank dedicated to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances companies and projects to achieve financial results and maximize sustainable developments in the region. With a $15.3 billion portfolio in wealth management and 375 clients in 25 countries, IDB Invest provides innovative financial solutions and advice that meet the needs of its clients across a variety of industries.