IDB Invest Prices $1 Billion 5-Year Fixed-Rate Sustainability Bond
WASHINGTON, Feb. 14, 2023 /PRNewswire/ -- IDB Invest, the IDB Group's private sector institution rated Aa1/AA+/AAA, priced a $1 billion sustainability bond through a 5-year global benchmark. 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, equal to a yield of 4.210%, 38.5 basis points over the 5-year U.S. Treasury bond. BNP Paribas, Citigroup Global Markets, Goldman Sachs and JP Morgan acted as joint bookrunners 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 $1 billion 5-year bond in April 2021.
Demand for the transaction was strong, with 46 investors putting in orders for more than $1.2 billion. ESG-oriented investors were especially present and purchased 38% of the allocated bonds. Central banks and official institutions purchased 45% of the bonds, while the remaining was shared among banks (30%), asset managers (16%) and insurance / pension funds (9%). In terms of geographical distribution, EMEA led with 62% of the 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," said Orlando Ferreira, Chief Finance and Administration Officer of IDB Invest. "This is part of our development mission, and investors are increasingly turning to Latin America and the Caribbean for ESG investing. We aim to connect investor financing with the region's private sector companies to generate impact."
Earlier this month, Fitch Ratings affirmed IDB Invest's AAA rating with a Stable Outlook for its excellent liquidity, low solvency risks and robust 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 $15.3 billion in assets under management and 375 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
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