By Cristal Cody
Tupelo, Miss., Oct. 1 – Inter-American Development Bank (Aaa/AAA) priced C$600 million of 1.7% inaugural sustainable development bonds due Oct. 10, 2024 at 99.824 to yield 1.737%, or a spread of 35.5 basis points over the Government of Canada benchmark, according to a news release on Monday.
RBC Dominion Securities Inc., Scotia Capital Inc. and TD Securities Inc. were the lead managers.
The bonds were sold to 25 investors across the world, including PSP Capital Partners LLC, Bank of Nova Scotia Treasury, Sun Life Assurance Co. of Canada and Nomura Asset Management Co., Ltd.
Of the distribution, 40% went to Canadian investors, 28% to investors in the Americas, 17% to investors in Europe, the Middle East and Africa and 15% to Asia-Pacific investors.
Banks took 53% of the bonds, while asset managers purchased 27%, pension funds and insurers bought 11% and central banks and institutions took 9% of the deal.
Proceeds will be used to finance projects aligned with the bank’s sustainable development goals to reduce poverty and inequalities in Latin America and the Caribbean.
The provider of development financing for Latin America and the Caribbean is based in Washington, D.C.
| Issuer: | Inter-American Development Bank
|
| Amount: | C$600 million
|
| Description: | Sustainable development bonds
|
| Maturity: | Oct. 10, 2024
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| Bookrunners: | RBC Dominion Securities Inc., Scotia Capital Inc. and TD Securities Inc.
|
| Coupon: | 1.7%
|
| Price: | 99.824
|
| Yield: | 1.737%
|
| Spread: | Government of Canada benchmark plus 35.5 bps
|
| Announcement date: | Oct. 1
|
| Settlement date: | Oct. 10
|
| Ratings: | Moody's: Aaa
|
| S&P: AAA
|
| Distribution: | Canada
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