The Inter-American Development Bank (IDB) has completed a £1 billion fixed-rate benchmark bond issuance, marking its largest-ever transaction in sterling and its first benchmark issuance in the currency for 2026. Investor demand for the bond exceeded £2.2 billion, more than double the amount issued, reflecting strong confidence in the Bank’s credit quality and its long-standing presence in international capital markets. The bond, maturing in July 2031, offers a fixed annual interest rate of 4.000% and was priced in line with prevailing market conditions.
IDB’s Head of Funding, Laura Fan, highlighted that the strong response to the sterling transaction demonstrates investor confidence in the Bank and their continued support for sustainable development across Latin America and the Caribbean. The issuance also signals a robust start to 2026 for IDB’s funding programme, leveraging market timing and execution strategy to maximize impact.
Market participants emphasized the significance of the transaction. Barclays noted that the record demand underscores IDB’s premier standing among supranational, sovereign, and agency investors, while RBC Capital Markets highlighted the tight reoffer spread achieved for the July 2031 maturity. BofA Securities recognized the deal as a landmark outcome, resulting in IDB’s largest-ever sterling orderbook and syndication. NatWest also celebrated the issuance as a milestone, reflecting IDB’s ongoing commitment to the sterling market and its ability to attract strong investor interest.
Overall, this bond issuance strengthens IDB’s position in global capital markets, supports its funding for sustainable development initiatives, and demonstrates its continued appeal to a diverse international investor base.
