IDB Invest, the private sector financing arm of the IDB Group, issued MXN2.5 billion ($134 million) worth of social bonds in a deal that generated its biggest-ever order book in the Mexican market.
“The transaction attracted demand exceeding MXN4.65 billion — 1.9 times the offered amount — marking the highest demand ever achieved by IDB Invest for this type of issuance in Mexico,” the multilateral lender said in a news release on Wednesday.
The bank priced 2028 notes at 0.31% over the TIIE Fondeo, an interbank lending rate that was 7.77% as of August 26.
Investment funds acquired 63% of the notes, banks and brokerage firms bought 18%, financial advisors 17%, and government entities 2%, IDB Invest said. BBVA and Santander acted as the underwriters, it added.
The deal was the bank’s fifth under its sustainable debt framework and the proceeds will be used for on-lending to SMEs, it said.
The multilateral lender sold MXN2.5 billion worth of three-year notes in Mexico in March last year.