Company Announcements

Issue of Debt

Source: RNS
RNS Number : 8482H
Inter-American Development Bank
29 November 2022





Inter-American Development Bank

Global Debt Program

Series No: 850



USD 50,000,000 Multi Callable Zero Coupon Notes due November 28, 2032 (the "Notes")



Issue Price: 100.00 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






J.P. Morgan Securities plc







The date of this Pricing Supplement is November 22, 2022

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.

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:

USD 50,000,000


Issue Price:

USD 50,000,000, which is 100.00 percent of the Aggregate Principal Amount



Issue Date:

November 28, 2022


Form of Notes
(Condition 1(a)):


Registered only, as further provided in paragraph 8 of "Other Relevant Terms" below.



New Global Note:



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


USD 1,000,000 and integral multiples thereof.



Specified Currency
(Condition 1(d)):

United States Dollars (USD) 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):

November 28, 2032


The Maturity Date is subject to the Business Day Convention, but with no adjustment to the amount of interest otherwise calculated.



Interest Basis
(Condition 5):

Zero Coupon (Condition 5(IV))


The Notes constitute "Par Zero Coupon Notes" under the Conditions.



Zero Coupon (Conditions 5(IV) and 6(c)):



(a)        Amortization Yield:

5.22 percent per annum



(b)        Reference Price:

Issue Price



(c)        Basis:

Compounded annually



Relevant Financial Center:

London, New York



Relevant Business Days:

London, New York



Redemption Amount (Condition 6(a)):


Unless previously redeemed or purchased and cancelled as specified in the Terms and Conditions, the Notes will be redeemed by the Bank by payment of the Redemption Amount on the Maturity Date. The Redemption Amount will be USD 83,167,372.09, being 166.335 percent of the Aggregate Principal Amount, subject to Item 17 (Issuer's Optional Redemption) below.



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


Yes, in whole but not in part


(a)  Notice Period:

No less than five (5) Relevant Business Days prior to the Optional Redemption Date



(b)  Amount:

100.00 percent per Authorized Denomination



(c)  Date(s):

November 28 in each year, commencing on November 28, 2026, up to and including November 28, 2031.



(d) Early Redemption Amount Bank:


November 28, 2026 


USD 61,286,270.57 which is 122.57254113 percent of the Aggregate Principal Amount


November 28, 2027

USD 64,485,413.89 which is 128.97082778 percent of the Aggregate Principal Amount


November 28, 2028

USD 67,851,552.50 which is 135.70310499 percent of the Aggregate Principal Amount


November 28, 2029

USD 71,393,403.54 which is 142.78680707 percent of the Aggregate Principal Amount


November 28, 2030

USD 75,120,139.20 which is 150.24027840 percent of the Aggregate Principal Amount

November 28, 2031

USD 79,041,410.47 which is 158.08282093 percent of the Aggregate Principal Amount



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




Early Redemption Amount (including accrued interest, if applicable) (Condition 9):



In the event of any Note becoming due and payable prior to the Maturity Date in accordance with Condition 9 (but, for the avoidance of doubt, not Condition 6(e)), the Early Redemption Amount will be an amount equal to the Amortized Face Amount of such Note (calculated in accordance with Condition 6(c)).



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:




Euroclear Bank SA/NV and/or Clearstream Banking, Luxembourg






Commissions and Concessions:

None.  An affiliate of the Dealer has arranged a swap with the Bank in connection with this transaction and will receive amounts thereunder that may comprise compensation.



Estimated Total Expenses:

The Dealer has 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)        ISIN:



(b)        CUSIP:



(c)        Common Code:



Identity of Dealer:

J.P. Morgan Securities plc


Provisions for Registered Notes:


(a)  Individual Definitive Registered Notes Available on Issue Date:





(b)  DTC Global Note(s):



(c)  Other Registered Global Notes:


Yes, issued in accordance with the Amended and Restated Global Agency Agreement, dated as of July 28, 2020, between the Bank, Citibank, N.A., London Branch as Global Agent, and the other parties thereto. 



Intended to be held in a manner which would allow Eurosystem eligibility:



Not Applicable


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:

The Dealer 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, the Dealer 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.


Recent Developments


On September 26, 2022, the Board of Governors of the Inter-American Development Bank (IDB) resolved that Mr. Mauricio Claver-Carone would cease to hold the office of President of the Bank, effective on that day. In accordance with the Bank's Charter, the Executive Vice President, Reina Irene Mejía Chacón, is serving as President a.i. On November 20, 2022, Ilan Goldfajn was elected president of the Bank during a Special Meeting of the Bank's Board of Governors.  Mr. Goldfajn will take office for a five-year term on December 19, 2022.

General Information

Additional Information regarding the Notes

1.         United States Federal Income Tax Matters

            The following supplements the discussion under the "Tax Matters" section of the Prospectus regarding the U.S. federal income tax treatment of the Notes, and is subject to the limitations and exceptions set forth therein.  Any tax disclosure in the Prospectus or this Pricing Supplement is of a general nature only, is not exhaustive of all possible tax considerations and is not intended to be, and should not be construed to be, legal, business or tax advice to any particular prospective investor.  Each prospective investor should consult its own tax advisor as to the particular tax consequences to it of the acquisition, ownership, and disposition of the Notes, including the effects of applicable U.S. federal, state, and local tax laws and non-U.S. tax laws and possible changes in tax laws.

            The Notes will be issued with original issue discount equal to the excess of the Redemption Amount on the Maturity Date over their Issue Price.  United States holders of the Notes will accordingly be subject to the rules described in the Prospectus under "Tax Matters - United States Holders - Original Issue Discount - General". 




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