Inter-American Development Bank Launches $150 Million Notes
The Inter-American Development Bank (IDB) has successfully issued $150 million worth of notes as part of its Global Debt Program. According to a recent pricing supplement, these notes come with a fixed interest rate of 4.21 percent and are scheduled for maturity on December 13, 2027.
Details of the Notes Issuance
The issuance price is set at 100 percent of the aggregate principal amount, with the notes’ issue date noted as December 20, 2024. Denominated in U.S. dollars, the minimum authorized denomination for these notes is $10,000 and in integral multiples thereafter. Investors can anticipate semi-annual interest payments on June 13 and December 13 each year, with the first payment expected on June 13, 2025.
Interest Payments and Calculations
The interest payments are calculated based on a 30/360 day count fraction, adhering to the Following Business Day Convention. This means if a payment date falls on a non-business day, it will be paid on the next business day without adjustments to the amount of interest due.
Governance and Clearing
The notes will not be listed on any stock exchange and are issued exclusively with a registration system. They will be settled through reputable clearing agencies such as Euroclear Bank SA/NV and Clearstream Banking S.A. In this issuance, Wells Fargo Securities (NYSE: WFC) acts as the dealer.
Wells Fargo's Role
Wells Fargo Securities has committed to manage all significant expenses related to the issuance of these notes. Importantly, both the issuer and holders of the notes do not have the option for redemption, and these securities are governed under New York law.
Regulatory Considerations
The notes have been assigned an ISIN of XS2966293248 and a common code of 296629324. While focusing on investment opportunities, it’s pertinent to note that these notes are not intended to meet Eurosystem eligibility and there are selling restrictions applicable in several jurisdictions, including the United States and the United Kingdom, ensuring compliance with relevant securities laws.
Capital Raising Efforts
This issuance is an essential component of the IDB's strategic efforts to raise capital through its Global Debt Program, aiming to offer investors a chance to engage with notes from a prominent international financial institution.
Frequently Asked Questions
What is the main purpose of the IDB's note issuance?
The issuance aims to raise capital under the IDB's Global Debt Program, providing investors with investment opportunities.
What are the key details about the notes?
The notes are for $150 million, with a fixed interest rate of 4.21% and maturity on December 13, 2027.
How often will interest be paid?
Interest payments will occur semi-annually on June 13 and December 13 each year starting from 2025.
Is there any option for redemption?
No, the notes are not subject to redemption at the option of either the issuer or the note holders.
What clearing systems will process these notes?
The notes will be cleared through Euroclear Bank and Clearstream Banking, ensuring smooth operations.
