The Inter-American Development Bank (IDB) set the reference price of a new 7-year global sustainable development bond for an amount of 3 billion dollars. The transaction marks IDB’s third global dollar fixed rate offering of the year and represents IDB’s first 7-year fixed-rate benchmark since July 2021, after issuing a 3.5 billion dollars 5-year benchmark in January 2022 and a 2-year 2 billion dollars benchmark in June 2022.

The bond pays a 3.5% semi-annual coupon and matures on September 14, 2029. It was priced at +46 basis points spread over SOFR mid-swaps, which equates to +21.6 basis points over the 3.125% US Treasury Bond due August 2029 and has a semi-annual yield of 3.594%.
The success of this financing highlights the quality of IDB’s credit, as well as the globally diverse and resilient investor base. The orderbook was of particularly high quality, anchored primarily by Bank Treasuries, Central Banks and Official Institutions.