Inter-American Development Bank issues $150M in notes

WASHINGTON - The Inter-American Development Bank (IDB) has announced the issuance of USD 150 million in notes under its Global Debt Program. The notes, which carry a 4.02 percent interest rate, are set to mature on March 1, 2030, with the issue date being today.

The bank has not applied for these notes to be listed on any stock exchange, and they were issued at 100 percent of their aggregate principal amount. The interest on these notes will be paid semi-annually in arrears on March 1 and September 1 each year, beginning with the first coupon payment on September 1, 2025.

BMO Capital Markets acted as the dealer for this transaction. The notes are in registered form only and will be settled through The Depository Trust Company (DTC), Euroclear Bank SA/NV, and/or Clearstream Banking S.A. The notes were issued without a syndicate and the dealer has agreed to pay for all material expenses related to the issuance.

The notes are governed by New York law and have been exempted from certain U.S. securities regulations. They are not intended to be offered or sold in Singapore except to institutional or accredited investors, and they have been deemed not applicable for Eurosystem eligibility.

The IDB’s mission, as stated in the press release, is to improve lives in Latin America and the Caribbean by contributing to economic and social development and supporting efforts to reduce poverty and inequality in a sustainable, climate-friendly way. The net proceeds from the sale of the notes will be included in the ordinary capital resources of the IDB and used in its ordinary operations. The bank has clarified that the proceeds will not be earmarked for specific loans, projects, or programs, and its operational expenses are covered by its revenue sources, including net interest margin and investment income.

Potential investors are advised that while the proceeds will support the IDB’s general operations, they may not meet specific sustainability criteria that some investors may require. There is no guarantee that projects financed by the IDB will align with any particular definition of "sustainable" investment.

This financial move by the IDB is based on a press release statement, and it reflects the bank’s ongoing efforts to secure funds for its development initiatives across Latin America and the Caribbean.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.