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(File photo)

IDB issues first US-dollar bond for 2020

(File photo)

The Inter-American Development Bank (IDB/IADB) on Tuesday, January 14, issued its first USD fixed-rate bond for 2020 in the amount US$3 billion.

“A strong way to kick-off IADB’s 2020 borrowing programme, pricing new five-year notes at a single-digit spread over US Treasuries …IADB’s high-quality order book stood out, with over half the deal sold to central bank and official money investors.”

— Sean Hayes, managing director and head of US Syndicate, BMO Capital Markets

With a tenure of five years, the instrument holds a coupon rate of 1.750 per cent, which will be paid on a semi-annual basis, on March 14 and September 14. The bond will mature on March 14, 2025.

As with previous years, IDB kicked off its funding programme with a USD five-year global benchmark. Yet, despite a busy and competitive period within which to issue instruments, orders for the IDB benchmark reached in excess of US$3.3 billion from over 65 investors.

(Photo: Global Capital)

“Given the robust seasonal demand in January, we felt comfortable with this issuance window. We achieved a book of the highest quality spearheaded by central banks and official institutions which allowed us to achieve significant pricing milestones. We are off to a good start for the new year!” said Laura Fan, head of funding, IDB.

With Bank of America Securities, Bank of Montreal Capital Markets, Citibank NA, and TD Securities as lead arrangers, the bond is listed on the London Stock Exchange.

BMO Capital Markets acted as a co-lead arranger for the issuance of Inter-American Development Bank’s bond valued at US$3 billion. The instrument has a coupon of 1.75 per cent and matures in five years, on March 14, 2025. (Photo: Ivy Exec)

According to Sean Hayes, managing director and head of US Syndicate, BMO Capital Markets, “A strong way to kick-off IADB’s 2020 borrowing programme, pricing new five-year notes at a single-digit spread over US Treasuries. In a week that saw over $16bn of USD SSA and GSE new issue supply, IADB’s high-quality order book stood out, with over half the deal sold to central bank and official money investors.”