IADB issues its first inflation-linked bond denominated in Brazilian reais

13/12/2004 | www.iadb.org

ABN AMRO is the lead manager

The Inter-American Development Bank has issued its first inflation-linked bond denominated in Brazilian currency. The issue of 200 million reais (approximately $73,000,000)  matures on Dec. 8, 2009.  The issue was priced on Dec. 7 at 100 percent and will pay a coupon of 6.26 percent. The principal will be adjusted to inflation.

ABN AMRO is the lead manager of the issue, which is targeted to international institutional investors and is subject to selling restrictions in Brazil.
The bond is the fourth IDB issue in a Latin American currency. The IDB earlier this year issued a bond in Brazilian reais as well as issues in Colombian and Mexican national currencies.
The latest issue was well received by the market, satisfying global demand for Brazilian reais assets.
The proceeds were swapped into U.S. dollars by the IDB and will be used to help finance the Bank’s lending program for the economic and social development of Latin America and the Caribbean. The IDB’s borrowing program in 2004 is expected to be about $5 billion.
This year the Bank for the first time issued bonds in Latin American currencies in order to take advantage of favorable market opportunities and a growing maturity and depth in regional financial systems.

Related stories


    Africa has been on the cusp of mainstream capital markets for years. While the continent made a breakthrough in the variety of issuance it produced in 2012-13, 2014 looks like it will be the year when African borrowers finally become established

  • LatAm bond party to go on in face of volatility

    Rising US interest rates should in theory lead investors to withdraw money from emerging economies so those in Latin America suffering weak growth. But leading debt bankers feel that the party has some time to go.

  • ASIAN BANK CAPITAL: Basel spurs bank paper rush across ...

    Bank debt issuance across Asia is soaring this year, driven by the need to comply with Basel III regulations. Fresh impetus from China is set to send volumes higher still

  • KAZAKHSTAN: Kicking Kazakhstan back into gear ...

    With every resource that it needs to become a wealthy country, Kazakhstan should be doing better, but its economy remains stubbornly tied to energy and metals prices. President Nazarbayev is running out of time to transform his nation

  • MONGOLIA: OT mess holds up Mongolia's advance

    Falling commodity prices have hurt Mongolia’s economy, which relies heavily on its abundant natural resources. Improving relations with China are helping it through the squeeze but the country has yet to show its true potential to global investors

Editor's Picks

In Focus

  1. AFRICA IN THE INTERNATIONAL BOND MARKETS: African sovereigns go mainstream as investors shift focus away from Russia

  2. KAZAKHSTAN: Kicking Kazakhstan back into gear - Nazarbayev tries again at transformation