IDB Invest has completed the inaugural benchmark issuance of a US$1 billion sustainability bond in the framework of its new global debt program.
It is a three-year fixed rate bond that pays an annual coupon of 2.625% and priced at mid-swaps + 32 bp. The operation was strongly demanded with more than 50 investors from all over the world participating. Central banks and official institutions took the largest share of allocations accounting for 71%, followed by asset managers (15%).
The proceeds of the Sustainable Bond will be used to finance eligible green and social projects to promote private sector development in Latin America and the Caribbean, as defined in the IDB’s Sustainable Debt Framework.