Company Announcements

Issue of Debt

Source: RNS
RNS Number : 8973F
Inter-American Development Bank
20 July 2021


Inter-American Development Bank

Global Debt Program

Series No.: 804


U.S.$3,000,000,000 1.125 percent Notes due July 20, 2028 (the "Notes")

Issue Price:  99.271 percent


Application has been made for the Notes to be admitted to the
Official List of the Financial Conduct Authority and
to trading on the London Stock Exchange plc's
UK Regulated Market


BMO Capital Markets



Wells Fargo Securities


BofA Securities

Commonwealth Bank of Australia 

Daiwa Capital Markets Europe Limited

Deutsche Bank


J.P. Morgan

Morgan Stanley

RBC Capital Markets


TD Securities



The date of this Pricing Supplement is July 16, 2021.


Terms used herein shall be deemed to be defined as such for the purposes of the Terms and Conditions (the "Conditions") set forth in the Prospectus dated July 28, 2020 (the "Prospectus") (which for the avoidance of doubt does not constitute a prospectus for the purposes of Part VI of the United Kingdom ("UK") Financial Services and Markets Act 2000 or a base prospectus for the purposes of Regulation (EU) 2017/1129 (as amended, the "Prospectus Regulation") or the Prospectus Regulation as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("EUWA")).  This Pricing Supplement must be read in conjunction with the Prospectus.  This document is issued to give details of an issue by the Inter-American Development Bank (the "Bank") under its Global Debt Program and to provide information supplemental to the Prospectus.  Complete information in respect of the Bank and this offer of the Notes is only available on the basis of the combination of this Pricing Supplement and the Prospectus.

UK MiFIR product governance / Retail investors, professional investors and ECPs target market - See "General Information-Additional Information Regarding the Notes-Matters relating to UK MiFIR" below.

Terms and Conditions

The following items under this heading "Terms and Conditions" are the particular terms which relate to the issue the subject of this Pricing Supplement.  Together with the applicable Conditions (as defined above), which are expressly incorporated hereto, these are the only terms that form part of the form of Notes for such issue.


Series No.:




Aggregate Principal Amount:




Issue Price:

U.S.$2,978,130,000 which is 99.271 percent of the Aggregate Principal Amount




Issue Date:

July 20, 2021



Form of Notes
(Condition 1(a)):

Book-entry only (not exchangeable for Definitive Fed Registered Notes, Conditions 1(a) and 2(b) notwithstanding)




Authorized Denomination(s)
(Condition 1(b)):

U.S.$1,000 and integral multiples thereof



Specified Currency
(Condition 1(d)):


United States Dollars (U.S.$) being the lawful currency of the United States of America



Specified Principal Payment Currency
(Conditions 1(d) and 7(h)):




Specified Interest Payment Currency
(Conditions 1(d) and 7(h)):




Maturity Date
(Condition 6(a); Fixed Interest Rate and Zero Coupon):


July 20, 2028



Interest Basis
(Condition 5):

Fixed Interest Rate (Condition 5(I))



Interest Commencement Date
(Condition 5(III)):

Issue Date (July 20, 2021)



Fixed Interest Rate (Condition 5(I)):

(a)        Interest Rate:

1.125 percent per annum



(b)        Fixed Rate Interest Payment Date(s):


Semi-annually in arrear on January 20 and July 20 in each year, commencing on January 20, 2022.


Each Fixed Rate Interest Payment Date is subject to the Business Day Convention, but with no adjustment to the amount of interest otherwise calculated.




(c)        Business Day Convention:

Following Business Day Convention



(d)       Fixed Rate Day Count Fraction(s):





Relevant Financial Center:

New York



Relevant Business Day:

New York



Issuer's Optional Redemption (Condition 6(e)):




Redemption at the Option of the Noteholders (Condition 6(f)):




Governing Law:

New York


Other Relevant Terms




Application has been made for the Notes to be admitted to the Official List of the Financial Conduct Authority and to trading on the London Stock Exchange plc's UK Regulated Market



Details of Clearance System Approved by the Bank and the
Global Agent and Clearance and
Settlement Procedures:





Federal Reserve Bank of New York; Euroclear Bank SA/NV; Clearstream Banking S.A.






If Syndicated:



(a)        Liability:



(b)        Lead Managers:

BMO Capital Markets Corp.

Citigroup Global Markets Limited

Nomura International plc

Wells Fargo Securities, LLC



Commissions and Concessions:

0.15 percent of the Aggregate Principal Amount



Estimated Total Expenses:

The Joint Lead Managers have agreed to pay for all material expenses related to the issuance of the Notes, except the Issuer will pay for the London Stock Exchange listing fees, if applicable.






(a)        Common Code:



(b)        ISIN:



(c)        CUSIP:



Identity of Managers:

BMO Capital Markets Corp.

Citigroup Global Markets Limited

Nomura International plc

Wells Fargo Securities, LLC


Commonwealth Bank of Australia

Daiwa Capital Markets Europe Limited

Deutsche Bank AG, London Branch

HSBC Bank plc

J.P. Morgan Securities plc

Merrill Lynch International

Morgan Stanley & Co. International plc

RBC Capital Markets, LLC

Scotiabank Europe plc

The Toronto-Dominion Bank



Selling Restrictions:

(a)        United States:




Under the provisions of Section 11(a) of the Inter-American Development Bank Act, the Notes are exempted securities within the meaning of Section 3(a)(2) of the U.S. Securities Act of 1933, as amended, and Section 3(a)(12) of the U.S. Securities Exchange Act of 1934, as amended.



(b)        United Kingdom:

Each of the Managers represents and agrees that (a) it has only communicated or caused to be communicated and will only communicate or cause to be communicated an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act 2000 (the "FSMA")) received by it in connection with the issue or sale of the Notes in circumstances in which Section 21(1) of the FSMA does not apply to the Bank, and (b) it has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to such Notes in, from or otherwise involving the UK.


(c)        Singapore:

In the case of the Notes being offered into Singapore in a primary or subsequent distribution, and solely for the purposes of its obligations pursuant to Section 309B of the Securities and Futures Act (Chapter 289) of Singapore (the "SFA"), the Issuer has determined, and hereby notifies all relevant persons (as defined in Section 309A of the SFA) that the Notes are "prescribed capital markets products" (as defined in the Securities and Futures (Capital Markets Products) Regulations 2018 of Singapore) and Excluded Investment Products (as defined in MAS Notice SFA 04-N12: Notice on the Sale of Investment Products and MAS Notice FAA-N16: Notice on Recommendations on Investment Products).



(d)       General:

No action has been or will be taken by the Issuer that would permit a public offering of the Notes, or possession or distribution of any offering material relating to the Notes in any jurisdiction where action for that purpose is required.  Accordingly, each of the Managers agrees that it will observe all applicable provisions of law in each jurisdiction in or from which it may offer or sell Notes or distribute any offering material.

General Information

Additional Information Regarding the Notes

1.          Use of Proceeds

            The net proceeds from the sale of the Notes will be included in the ordinary capital resources of the Bank and, will not be committed or earmarked for lending to, or financing of, any specific loans, projects or programs. The Bank, in partnership with its member countries, works to reduce poverty and inequalities in Latin America and the Caribbean by promoting economic and social development in a sustainable, climate friendly way.

            The Bank's strategic priorities include social inclusion and equality, productivity and innovation and economic integration along with three cross-cutting issues: gender equality and diversity, climate change and environmental sustainability, and institutional capacity and the rule of law. Each strategic priority of the Bank aligns to at least one of the United Nations Sustainable Development Goals ("SDGs"), with all goals covered within the Bank's institutional strategy, which may be adapted from time to time should the United Nations SDGs definition evolve.

            All projects undertaken by the Bank go through the Bank's rigorous sustainability framework. The framework tracks measurable results, adherence to lending targets and the effectiveness of its environmental and social safeguards. The Bank's administrative and operating expenses are currently covered entirely by the Bank's various sources of revenue, consisting primarily of net interest margin and investment income (as more fully described in the Bank's Information Statement).

2.         Matters relating to UK MiFIR

The Bank does not fall under the scope of application of the UK MiFIR regime.  Consequently, the Bank does not qualify as an "investment firm", "manufacturer" or "distributor" for the purposes of UK MiFIR.

UK MiFIR product governance / Retail investors, professional investors and ECPs target market

Solely for the purposes of each UK manufacturer's product approval process, the target market assessment in respect of the Notes has led to the conclusion that: (i) the target market for the Notes is retail clients, as defined in point (8) of Article 2 of Regulation (EU) No 2017/565 as it forms part of UK domestic law by virtue of the EUWA, eligible counterparties, as defined in COBS, and professional clients, as defined in UK MiFIR; and (ii) all channels for distribution of the Notes are appropriate. Any person subsequently offering, selling or recommending the Notes (a "distributor") should take into consideration the UK manufacturers' target market assessment; however, a distributor subject to the UK MiFIR Product Governance Rules is responsible for undertaking its own target market assessment in respect of the Notes (by either adopting or refining the UK manufacturers' target market assessment) and determining appropriate distribution channels.

For the purposes of this provision, (i)the expression "UK manufacturers" means Citigroup Global Markets Limited and Nomura International plc, (ii) the expression "COBS" means the FCA Handbook Conduct of Business Sourcebook, (iii) the expression "UK MiFIR" means Regulation (EU) No 600/2014 as it forms part of UK domestic law by virtue of the EUWA and (iv) the expression "UK MiFIR Product Governance Rules" means the FCA Handbook Product Intervention and Product Governance Sourcebook.

For the purposes of this provision, the expression UK MiFIR means Regulation (EU) No 600/2014 as it forms part of UK domestic law by virtue of the EUWA.




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