IDB Launches $2 Billion 7-year Global Sustainable Development Bond

The Inter-American Development Bank ("IDB" or "IADB"), rated Aaa/AAA (Moody's/S&P), priced a new $2 billion 7-year Global Sustainable Development Bond benchmark.

The transaction pays a semi-annual coupon of 3.625% and matures on September 17, 2031. It was priced with a spread of 52 basis points over SOFR mid-swaps, which equates to 13.8 basis points over 3.750% United States Treasury due August 31, 2031. Final books closed above $2.2 billion with 50 investors participating. The wide geographical distribution of investors is testament to IDB's established standing across the global investor community.

"We focused on the 7-year as our third and final USD fixed-rate global benchmark for 2024. As we hadn't issued in this maturity last year, we were eager to add a point on that part of the curve," said Laura Fan, IDB Head of Funding. "The transaction met with strong reception from high-quality investors across different regions. This bond completes our curve alongside the 5 and 10-year trades, as we approach our $21 billion program target for the year."

Investor Distribution:

Geographic Region	Investor Type
Europe, Middle East and Africa	46%	Central Banks and Official Institutions	37%
Americas	31%	Banks	38%
Asia and Pacific	23%	Asset Managers	14%
		Pension Funds, Insurance and Corp.	11%

Bond Summary Terms:

Issuer:	Inter-American Development Bank (Ticker: IADB)
Issuer rating:	Aaa / AAA (Moody's / S&P)
Amount:	USD 2 billion
Settlement date:	September 17, 2024 (T+5)
Coupon:	3.625%
Coupon payment dates:	March 17 and September 17 (semi-annually)
Maturity date:	September 17, 2031
Issue price:	99.627%
Issue yield:	3.686% semi-annual
Reoffer spread (bps):	SOFR MS+52 / UST 3.375% 08/31 + 13.8bps
Listing:	London Stock Exchange's Regulated Market
Clearing systems:	Fedwire, Euroclear, Clearstream
Joint lead managers:	Barclays, J.P. Morgan, Nomura, RBC Capital Markets
Co-lead managers:	BMO, BNP Paribas, Bank of America, Credit Agricole, Citi, Deutsche Bank, HSBC, Morgan Stanley, Scotiabank, Wells Fargo
ISIN:	US4581X0ER56

Joint Lead Manager Quotes:

"Congratulations to the IDB team on their successful 7-year USD Sustainable Development Bond benchmark. This transaction marks the first 7-year benchmark for IDB in over two years, achieving broad investor distribution and an impressively tight spread to US Treasuries in a busy primary market. Barclays is delighted to have been involved." Alex Paterson, Managing Director, Head of SSA DCM, Barclays.

"Congratulations to the IDB team on their successful $2 billion 7-year USD Sustainable Development Bond benchmark. This first 7-year deal since 2022 attracted high-quality support from central banks, official institutions, and bank treasuries, underscoring IDB's strong credit quality and investor relations. Timed ahead of potential market volatility, IDB was able to take advantage of a stable market conditions to price this successful transaction."Keith Price, Managing Director, Head of Frequent Borrower Group, J.P. Morgan.

"Congratulations to the IDB team on the launch of a new $2 billion line with a 2031 maturity. This well received transaction supplements the already successfully issued 5-year and 10 year maturities from earlier this year, fitting in with IDB's successful strategy of giving investors regular access to the full curve of issuance. Despite a busy primary market, IDB were able to garner a very high-quality book and continue to leverage the diverse global investor base IDB has access to. Nomura were delighted to be part this transaction." Conrad Baker, Managing Director, Head of SSA Syndicate, Nomura.

"This transaction tapped specific longer dated demand and ended up with a very high quality orderbook without the some of the faster money seen in recent trades. The strong support from key central banks, official institutions and bank treasuries is a reflection of the IDB's credit quality and the reward for a robust investor relations program." Jigme Shingsar, Managing Director, RBC Capital Markets

Information on bonds for Investors is available on the IDB website: https://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.

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