IADB launches inaugural $600m three-year SOFR-linked bonds
The Inter-American Development Bank has priced its inaugural $600 million three-year SOFR-linked floating rate global bond due 16 September 2022.
The issue priced at par, with a coupon equivalent to SOFR + 26bps. This will be calculated using a five-day observation lag on compounded daily SOFR, with no lockout. Joint lead arrangers were Citi, Deutsche Bank, TD, Wells Fargo Securities.
This is IADB's inaugural SOFR-linked transaction and represents its commitment to growing the floating rate market away from Libor and towards alternative overnight risk-free rates.
The geographical distribution highlights significant support from investors based in the Americas (86%), while the remaining 14% was allocated to EMEA-based investors.
In terms of investor type, most of the transaction was allocated to banks (54%), followed by fund managers & pension funds (25%) and the remaining 21% to central banks & official institutions.
