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WASHINGTON - The Inter-American Development Bank (IDB) has expanded its Global Debt Program with the issuance of a second tranche of floating rate notes, consolidating its debt offering as part of a larger series aimed at supporting development projects across the Americas.
On Thursday, the IDB priced $200 million in Floating Rate Notes due March 13, 2030, which will be consolidated with the bank’s previously issued $600 million Floating Rate Notes from the same series. These notes, known as Series 980 Tranche 2, were issued at a price of 99.956 percent of their aggregate principal amount, with an additional $1,842,000 representing 70 days’ accrued interest.
The IDB has structured these notes to pay interest quarterly in arrears, with the first payment scheduled for June 13, 2025. The interest rate for these securities is based on a floating rate, specifically Compounded SOFR (Secured Overnight Financing Rate), plus a spread of 0.39 percent per annum. The interest rate will be adjusted in accordance with the Following Business Day Convention, with Citibank, N.A., London Branch serving as the calculation agent.
The notes are book-entry only, with denominations starting at $1,000 and integral multiples thereof. They are set to mature on March 13, 2030, and the interest will be paid in U.S. dollars, the specified currency for both principal and interest payments.
Applications have been made for the notes to be admitted to the Official List of the Financial Conduct Authority and to trading on the London Stock Exchange (LON:LSEG)’s UK Regulated Market. Lead managers for the syndicated offering include BMO Capital Markets, Morgan Stanley (NYSE:MS), and National Bank of Canada (OTC:NTIOF) Financial.
The offering comes with a minimum interest rate of 0 percent per annum, and the notes will not feature options for redemption by either the issuer or the note holders prior to maturity. In case of default, the early redemption amount will be the minimum authorized denomination plus accrued interest, as determined by the specified floating rate terms.
The issuance is governed by New York law and has been assigned the ISIN US4581X0ET13, among other relevant securities codes. The IDB has also clarified that the notes are exempt securities within the meaning of Section 3(a)(2) of the U.S. Securities Act of 1933, as amended, and Section 3(a)(12) of the U.S. Securities Exchange Act of 1934, as amended.
Investors should be aware that the Prospectus and this Pricing Supplement do not describe all the risks associated with an investment in the Notes. The IDB has provided additional information regarding the Notes and the underlying SOFR rate, highlighting that SOFR is a relatively new reference rate and may be more volatile than other benchmark rates.
This financial move by the IDB is based on a press release statement and aims to raise capital to further its mission of reducing poverty and inequality in Latin America and the Caribbean through sustainable development.
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