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WASHINGTON, Feb. 14, 2023/PRNewswire/ — IDB Invest, the Aa1/AA /AAA-rated private sector institution of IDB Group, has priced a US$1 billion sustainability bond through a point global reference of 5 years. The bond was issued under IDB Invest’s Sustainable Debt Framework.
The bond pays a semi-annual coupon of 4.125% and was priced at SOFR mid-swaps plus 59 basis points, which equates to a yield of 4.210%, 38.5 basis points over the 5-year US Treasury note. BNP Paribas, Citigroup Global Markets, Goldman Sachs and JP Morgan acted as joint brokers on the deal. The bond matures on February 15, 2028.
The transaction is IDB Invest’s first benchmark in 2023 and its first 5-year fixed rate US dollar benchmark since its US$1 billion 5-year note in April 2021.
Demand for the transaction was strong, with 46 investors placing orders for more than $1.2 billion. ESG-oriented investors were especially present and bought 38% of the allocated bonds. Central banks and official institutions bought 45% of the bonds, while the rest was split between banks (30%), asset managers (16%) and insurance/pension funds (9%). In terms of geographic distribution, EMEA led with 62% of allocations, followed by the Americas with 26% and Asia Pacific with 12%.
The success of the transaction among global investors highlights the strength of IDB Invest’s credit profile.
“We are committed to leading as a sustainable issuer in the global market,” explained Orlando Ferreira, Director of Finance and Administration at IDB Invest. “This is part of our development mission, and investors are increasingly turning to Latin America and the Caribbean to invest in ESG. Our goal is to connect investor funding with private sector companies in the region to make an impact” .
Earlier this month, Fitch Ratings affirmed IDB Invest’s AAA rating with a stable outlook for its excellent liquidity, low solvency risks and strong asset performance.
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 sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of US$15.3 billion in assets under management and 375 clients in 25 countries, IDB Invest offers innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
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