The Inter-American Development Bank (IADB) has announced the issue of its first bond denominated in Brazilian currency, a zero coupon issue of R550mn (about US$189mn) that matures on May 11, 2009.
It was issued in the form of a registered global bond; it settles in US dollars and will be listed in the London Stock Exchange. This bond issue, which has selling restrictions in Brazil, is targeted to satisfy the international institutional demand for Brazilian reals assets.
Barclays Capital is the lead manager of the issue, which was priced at 50.07%.
This was the second bond issue by the IADB in a Latin American currency under its global debt programme. In early April the bank issued its first global bond denominated in Mexican pesos, the first operation for the IADB in a Latin American currency.
This new transaction, which was very well received by the market, opens new avenues of diversification for the IADB’s borrowing programme. The bond issuance was swapped into US dollars and will be used to help finance the IADB’s lending programme for the economic and social development of Latin America and the Caribbean.
IADB’s borrowing programme for 2004 is expected to be up to US$6bn.