IDB Invest, based in Framingham, Mass., has raised EUR500 million through a fixed-rate benchmark bond. The deal serves as the second euro-denominated bond and longest benchmark bond to date.
“IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector,” the company stated in a June 1 press release.
The seven-year bond, valued at mid-swaps plus 21 basis point, will be allocated toward an annual coupon of 3.125%, the release reports. The bond will equate to 97.3 basis points over the yield of the February 2030 German government bond. Deutsche Bank, DZ Bank, HSBC and TD Securities served as joint bookrunners on the deal, according to the release.
More than 40 investor orders were submitted for more than EUR1 billion, including EUR75 million joint lead manager interest, the release states. Banks and central banks/official institutions made up the bulk of the contributions at 49% and 33%, while the remainder to asset managers remained at 11%, insurance/pension funds at 6% and other investors at 1%, according to the release.
Investor demand was distributed among various geographies, with participation split between Germany/Austria/Switzerland at 25%, the UK/Ireland at 24%, Benelux at 14%, Other Europe/MEA regions at 11%, Asia at 10%, Italy at 9%, the Nordics at 6% and France at 2%, IDB Invest states in the release.
IDB Invest currently offers opportunities to invest in sustainable development in Latin America and the Caribbean, according to the release. The company’s portfolio consists of $15.3 billion in asset management for 375 clients across 25 countries, providing innovative financial solutions and advisory that meet the needs of its clients in a variety of industries, the press release states.
“IDB Invest finances companies and projects to achieve financial results and maximize sustainable development in the region,” the press release states.