IDB Invest has priced its inaugural Swiss franc-denominated bond, a CHF 100 million 10-year issue carrying a coupon of 1.0575 per cent, marking the multilateral's debut in the Swiss capital market. BNP Paribas acted as sole lead manager on the transaction, which was announced on Thursday.
Proceeds from the bond will finance projects promoting water security and marine biodiversity across Latin America and the Caribbean, the private sector arm of the Inter-American Development Bank Group said.
DEBUT IN THE SWISS MARKET
The transaction is IDB Invest's first outing in the Swiss capital market and adds a new currency to the institution's funding programme. Multilateral development banks have historically used the Swiss franc market to diversify their investor base beyond the core US dollar and euro pools, tapping the deep and typically stable domestic buyer base of Swiss institutional investors.
The 10-year tenor sits at the longer end of the maturities typically issued by supranational borrowers in Swiss francs and matches the type of long-dated funding usually deployed for infrastructure and environmental projects. Pricing the bond at a coupon of 1.0575 per cent reflects prevailing Swiss franc yield levels for high-grade supranational credit.
BNP Paribas ran the transaction as sole lead manager, guiding IDB Invest through investor engagement and pricing. Sole-managed transactions in the Swiss market are common for debut issuers seeking a controlled introduction to local investors.
WATER AND MARINE BIODIVERSITY FOCUS
IDB Invest said the CHF 100 million raised would be channelled into projects supporting water security and marine biodiversity in Latin America and the Caribbean, aligning the transaction with the institution's broader sustainability agenda in the region.
Water security projects typically span investments in supply infrastructure, treatment capacity and climate resilience, while marine biodiversity financing often involves conservation, sustainable fisheries and coastal ecosystem work. Both areas have been identified by multilaterals active in the region as under-funded relative to their economic and social importance.
By tying the use of proceeds to a defined thematic purpose, IDB Invest is offering Swiss investors direct exposure to LAC-focused environmental projects while still holding highly rated supranational debt. That combination has proven attractive to sustainability-focused mandates that Swiss institutional investors have been building in recent years. Structuring the debut as a 10-year note keeps the maturity aligned with the long-dated nature of many of the underlying water and marine biodiversity projects it will help to finance.
The debut also broadens the range of markets in which IDB Invest can raise long-dated capital, providing an additional tool to match the currency and tenor profile of its investment activity. The multilateral said the transaction diversified its investor base and marked its entry into a new funding market.
IDB Invest did not disclose a formal follow-up issuance plan for the Swiss market. Debut transactions from supranational issuers frequently pave the way for a repeat programme, subject to investor demand and the borrower's funding needs. The 1.0575 per cent coupon on the 10-year note provides a benchmark against which any future Swiss franc issuance from the multilateral could be priced, and gives Swiss investors a fresh reference point for high-grade LAC-focused development finance exposure.