The Inter-American Development Bank ('IDB' or 'IADB'), rated Aaa/AAA (Moody's/S&P), priced two new 10-year fixed-rate Sustainable Development Bonds (SDB) to support IDB's strategic priorities to reduce poverty and inequality in Latin America and the Caribbean.
One is denominated in Australian Dollar (AUD) valued in 60 million, equivalent to $47 million, and the other in New Zealand Dollar (NZD) valued in 66 million, equivalent to $48 million.
Japan Post Insurance is the sole investor of the bonds, and the NZD transaction represents the IDB's first SDB private placement in New Zealand Dollar. Wells Fargo Securities LLC is the underwriter and distributor of the AUD bond, and Morgan Stanley & Co International PLC is the underwriter and distributor of the NZD bond.
This issuance follows IDB's announcement last year that it would direct up to $12 billion of additional lending to support countries in their response to the COVID-19 pandemic and its consequences. On December 16, 2020, IDB further announced it will mobilize $1 billion to help Latin American and Caribbean countries acquire and distribute COVID-19 vaccines. The funds will complement $1.2 billion in resources that the IDB has committed in 2020, as well as other funds already programmed for 2021, to help countries save lives through public-health measures, such as more effective testing and tracing, and better clinical management of COVID-19 patients.
The IDB will concentrate support in three main areas:
The purchase of vaccine doses through multilateral efforts, such as the COVAX Facility, or individual efforts by countries;
Institutional strengthening to help countries develop effective vaccine deployment mechanisms;
Investment to build immunization capacity and finance operational costs.
AUD Bond Summary Terms:
Issuer:
Inter-American Development Bank (Ticker IADB)
Issuer rating:
Aaa / AAA (Moody's / S&P)
Amount:
AUD 60,000,000
Settlement date:
10 March 2021
Coupon:
1.74 %
Coupon payment dates:
10 March and 10 September (semi-annual)
Maturity date:
10 March 2031
Clearing systems:
Euroclear, Clearstream
Lead manager:
Wells Fargo Securities, LLC
ISIN / CUSIP:
XS2307565890 / 230756589
NZD Bond Summary Terms:
Issuer:
Inter-American Development Bank (Ticker IADB)
Issuer rating:
Aaa / AAA (Moody's / S&P)
Amount:
NZD 66,000,000
Settlement date:
10 March 2021
Coupon:
2.045 %
Coupon payment dates:
10 March and 10 September (semi-annual)
Maturity date:
10 March 2031
Clearing systems:
Euroclear, Clearstream
Lead manager:
Morgan Stanley International plc
ISIN / CUSIP:
XS2307552484 / 230755248
About the IDB
The Inter-American Development Bank is a multilateral financial institution supporting Latin America and the Caribbean's efforts to reduce poverty and inequality, and to bring about development in a sustainable, climate-friendly way. Established in 1959, it is the leading source of development financing for Latin America and the Caribbean, with a strong commitment to achieving measurable results. The IDB is owned by 48 countries, including 26 Latin American and Caribbean countries and 22 non-borrowing member countries. Since becoming the first Asian member country of the IDB in 1976, Japan has been involved in IDB projects through a number of funds and programs.
For investor information about IDB's bonds, please visit http://www.iadb.org/investors.
*This press release is not an offer for sale of the securities of the Inter-American Development Bank. Any offering of IDB securities will be made only by means of a prospectus or other definitive offering document that contains important information about the securities, the offering and IDB. Offerings of securities will be made only in compliance with applicable laws.
JAPAN POST INSURANCE CO., LTD. 
