IDB Invest launches first benchmark floating rate note bond under its new brand name

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Oct 05, 2018, 11:45 ET

WASHINGTON, Oct. 5, 2018 /PRNewswire/ -- IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, rated Aa1/AA/AAA (Moody's/S&P), priced a new $500 million, three-year floating rate note, the first benchmark issuance under its new brand name in the Eurobond market.

This bond will allow IDB Invest to fund its growing pipeline of financing operations to promote economic development in Latin America and the Caribbean through the private sector. The new issue pays a quarterly coupon of three-month Libor + 0.09% and matures on October 12, 2021. Citigroup, HSBC and JP Morgan acted as joint-bookrunners on the deal.

The final orderbook was 1.2x oversubscribed with participation from more than 20 investors across the globe and with orders totaling $611.8 million. The transaction represents IDB Invest's fourth issue in the Eurobond market.

The successful issuance reaffirms the interest of international investors for issuers of high credit quality such as IDB Invest and serves as a platform to attract international finance to the region and meet the growing demand of clients.

With this issue, IDB Invest has completed over 80% of its borrowing program for 2018. IDB Invest has borrowed in three currencies so far during the current fiscal year – MXN, COP and USD.

Investor Distribution:

By Geography		By Investor Type
Europe	48%	Central Banks/Official Institutions	52%
Americas	20%	Insurance/Corporates	5%
Middle East & Africa	7%	Asset Managers	12%
Asia Pacific	25%	Banks	32%

About IDB Invest
IDB Invest, the private sector institution of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting businesses in Latin America and the Caribbean. It finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.2 billion under management and 330 clients in 23 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the evolving demands of its clients. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation.

Bond Summary Terms

Issuer:	Inter-American Investment Corporation, also known as IDB Invest (Ticker IDBINV)
Issuer rating:	Aa1 / AA / AAA (Moody's / S&P / Fitch)
Format:	Reg S registered
Amount:	USD 500 million
Settlement date:	12 October 2018
Coupon:	3m$L+09 bps, Quarterly, Act/360
Maturity date:	12 October 2021
Issue price:	100%
Listing:	London Stock Exchange
Clearing systems:	Euroclear and Clearstream
Joint lead managers:	Citigroup, HSBC and JPMorgan