IDB taps Japanese investors in three-part bond deal

IDB taps Japanese investors in three-part bond deal

Bonds Debt Capital Markets Fixed Income Corporate & Sovereign Strategy Loans Coronavirus Latin America Japan Asia Brazil Mexico India United States

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The Inter-American Development Bank (IDB) has raised the equivalent of $17 million from Japanese investors in a three-part Uridashi deal that priced on May 28.

The Washington DC-based multilateral lender issued three-year notes in Brazilian reais, Mexican pesos and Indian rupees in the first sale of sustainable development bonds, or SDBs, in these currencies to retail investors in Japan, it said in a press release on Friday.

In a deal managed by the Japanese brokerage firm Nomura Securities, the IDB placed BRL32 million ($5.95 million) at a fixed rate of 2.78%, MXN191 million ($8.58 million) at 3.46% and INR634 million ($8.39 million) at 3.87%.

Earlier in the week, the IDB sold AUD350 million ($233 million) in SDBs with a coupon of 1.3% in a private placement with Japan Post Insurance, the life insurance division of Japan Post.

Last month, it 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 ($3.76 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.