IDB completes third bond sale in a week

IDB completes third bond sale in a week

Capital Markets Bonds Debt Economy & Policy Funds Latin America Coronavirus Central America Caribbean

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The Inter-American Development Bank (IDB) sold AUD50 million ($34.3 million) worth of 10-year sustainable development bonds (SDB) in a private placement on Thursday, marking the bank's third debt sale in a week for a total of $4.34 billion, according to a statement on Friday.

With Daiwa Capital Markets America as lead, the 2030 Australian dollar-denominated bonds sold with a coupon of 1.285%, IDB said. The sole investor was Mitsui Sumitomo Aioi Life Insurance Company.

"This particular Australian bond was targeted to sustainable development goal number three, which is good health and well-being," said Laura Fan, head of funding at IDB, told LatinFinance. "This includes all the work we are doing to support our member countries in their response to the effects of the COVID-19 pandemic."

This issuance is a part of the bank's $12 billion emergency lending program to support countries in their response to the COVID-19 pandemic and its consequences, the bank said.

Earlier this week, IDB raised on Tuesday $4 billion worth of new 0.625% 2025 bonds for the COVID-19 emergency and, on Thursday, another £250 million ($315 million) in a tap of its 0.5% 2026 sustainable development bonds (SDBs).

The IDB’s COVID-19 support is concentrating in immediate public health response, creating safety nests for vulnerable populations, economic productivity and employment and fiscal policies, the IDB said.