IDB sells sustainable bonds in Aussie dollars

IDB sells sustainable bonds in Aussie dollars

Bonds Debt Capital Markets Fixed Income Loans Coronavirus Latin America Japan Asia United States

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The Inter-American Development Bank (IDB) said on Tuesday that it sold AUD350 million ($233 million) in sustainable development bonds (SDBs) in Australian dollars to cover part of an emergency financing program during the coronavirus pandemic.

Japan Post Insurance, the life insurance division of Japan Post, bought all of the bonds in the IDB's first private placement with a Japanese institutional investor, the development bank said in a press release. Wells Fargo arranged the deal and priced the 10-year bonds with a coupon of 1.3%, the IDB added.

Last month, the IDB completed its largest SDB deal for $4.25 billion, more than twice its first sustainable bond sale in US dollars in late March. It also issued IDR55 billion ($3.73 million) in SDBs in Indonesian rupiahs in April.

The bond sales came after the IDB formed a $12 billion lending program to deal with the financial impact of the coronavirus pandemic with a focus on an immediate public healthcare response, safety nets for vulnerable populations, financing for small businesses and measures to support an economic recovery.

The IDB also announced on Tuesday that it plans to leverage up to $1.1 billion in investment loans to support countries that take in migrants, particularly migrants from Venezuela, during the COVID-19 pandemic. It has also made available $85 million in grants for the host countries.