IDB Invest Expands its Presence in the Euro Market with a 7-year Benchmark Bond
WASHINGTON, June 1, 2023 /PRNewswire/ -- IDB Invest, the IDB Group's private sector institution rated Aa1/AA+/AAA, raised EUR500 million through a 7-year, fixed-rate benchmark bond. This is IDB Invest's second euro-denominated 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, equivalent to 97.3 basis points over the yield of the February 2030 German government bond. Deutsche Bank, DZ Bank, HSBC and TD Securities acted as joint bookrunners on the deal.
Demand for the transaction was strong, with over 40 investors putting in orders for over EUR1 billion (including EUR75 million joint lead manager interest). Banks and central banks/official institutions took most allocations (49% and 33% respectively); the remainder to asset managers (11%), insurance/pension funds (6%) and other investors (1%). Investor demand was well-diversified in geography, with participation split between Germany/Austria/Switzerland (25%), the UK/Ireland (24%), Benelux (14%), Other Europe/MEA (11%), Asia (10%), Italy (9%), the Nordics (6%) and France (2%).
IDB Invest is committed to delivering opportunities to invest in sustainable development in Latin America and the Caribbean.
Investor Distribution | |||
Distribution by Geography | % | Distribution by Investor Type | % |
Germany/Austria/Switzerland | 25 % | Banks | 49 % |
UK/Ireland | 24 % | Central Banks / Official Institutions | 33 % |
Benelux | 14 % | Asset Managers | 11 % |
Other Europe / MEA | 11 % | Insurance / Pension Funds | 6 % |
Asia | 10 % | Other | 1 % |
Italy | 9 % | ||
Nordics | 6 % | ||
France | 2 % | ||
Transaction Summary | |
Issuer: | 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 |
Amount: | EUR 500 million |
Settlement date: | June 7, 2023 |
Coupon: | 3.125% p.a. |
Maturity date: | June 7, 2030 |
Issue price: | 99.820 % |
Issue yield: | 3.154 % |
Listing: | London Stock Exchange |
Clearing systems: | Euroclear and Clearstream |
Joint lead managers: | Deutsche Bank, DZ Bank, HSBC and TD Securities |
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed 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 development in the region. With a portfolio of $15.3 billion in asset management and 375 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory that meet the needs of its clients in a variety of industries.
Press contact: Ana Escudero analuciae@iadb.org
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