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, issued as a blue bond under IDB Invest's Sustainable Debt Framework, will finance projects promoting sustainable water management and marine ecosystem conservation 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. The bond was priced at 28 basis points over SARON mid-swaps and is listed on the SIX Swiss Exchange.
Treasuries took 43.2% of the bond, asset managers 37.5% and insurance companies 15.4%, with private banks and pension funds taking the rest, according to IDB Invest.
WATER AND MARINE BIODIVERSITY FOCUS
IDB Invest said the bond was the first blue bond issued by a supranational institution in the Swiss franc market.
IDB Invest is rated Aa1 by Moody's, AA+ by S&P and AAA by Fitch.
The multilateral said the transaction diversified its investor base and marked its entry into a new funding market.
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