The Inter-American Development Bank (IDB) said Wednesday it sold $4 billion worth of five-year bonds in what was its largest oversubscribed benchmark deal in the international market to date.
The IDB priced the new 4.125% 2029 notes at 99.611 to yield 4.211%, or 40 basis points over SOFR mid-swaps, after investors placed as much as $10.1 billion in orders, it said in a press release.
The development bank opened the initial price talk on Monday at around 43 basis points and set the guidance at 42 basis points before launching and pricing the deal the following day, according to information from Refinitiv.
“This bond is one for the IDB records book — largest ever orderbook and investor participation,” Laura Fan, the bank’s head of funding, said in a statement.
“Despite the three basis points tightening from IPTs, the book stuck and we printed $4 billion, allowing us to establish another point on our US dollar yield curve. It is an excellent start for our 2024 borrowing program of $19.5 billion,” Fan added.
Deutsche Bank, HSBC, Morgan Stanley and Scotiabank lead the bond sale, along with Barclays, BNP Paribas, J.P. Morgan and six other banks as joint bookrunners, according to the IDB.
The IDB raised roughly $10.8 billion in five benchmark size deals in the international market last year, including $1.5 billion worth of 3.2-year notes in December.