IDB Invest, the private arm of the Inter-American Development Bank (IDB), issued two sustainable bonds in local currency: a bond worth MEX$2.5 billion pesos (equivalent to approximately US$150 million) with a tenor of three years in Mexico, and a bond worth COL$40 billion pesos (equivalent to approximately US$10 million) in the international market.

The funds raised by both issuances will support access to inclusive financing and provide technical and financial support for critical transportation, renewable energy and telecommunications infrastructure projects, as well as innovative and environmentally sustainable corporate projects.

In recent years, IDB Invest has issued bonds in Mexican pesos, Colombian pesos, Dominican pesos and guaraníes, and expanding its credit offering in local currency will be a strategic priority in the coming years.

The issue in Mexico, listed on the Institutional Stock Exchange (BIVA), is IDB Invest’s fourth sustainable issue in that market after having issued three other social bonds in the last three years. Likewise, it is the tenth issue of IDB Invest in the local market.

The issue received local ratings of AAA.mx by Moody’s and AAA(mex) by Fitch Ratings, respectively. Banco Santander and Scotiabank acted as placement agents in the operation. The transaction was 1.2 times oversubscribed, with $3 billion of orders in Mexican pesos. The strong demand allowed the placement agents to set the size of the bond at 2,500 million pesos, the maximum amount of the range between 2,200 and 2,500 million pesos announced during the marketing, with a rate of 10 basis points over TIIE 28. The funds investment accumulated 70 per cent of the bonds issued, 21 per cent pension funds, and the remaining nine per cent banks.

IDB Invest also issued a second bond with a volume of 40,000 million Colombian pesos (approximately US$10 million) in the international market maturing in March 2030. Listed on the London Stock Exchange, this bond is IDB’s second sustainable bond Invest denominated in Colombian pesos.

Offering project financing in local currency protects borrowers in the region from foreign currency fluctuations, making debt payments less volatile and more sustainable.

Sustainable bonds in local currency issued by IDB Invest in recent years have already reported important results, including financing 570,000 micro, small and medium-sized enterprises (MSMEs), improving access to water and sanitation services for more than 657,000 families and the provision of health services to more than 14,000 beneficiaries.

Distribution by type of investor

Issuance summary in Mexico

Issuance summary in Colombia: