IADB launches $500m SOFR Index-linked global bond

The Inter-American Development Bank has priced a new $500 million long four-year benchmark bond linked to the Secured Overnight Financing rate index.

Joint lead managers are BMO Capital Markets, Citi, and Wells Fargo Securities.

The transaction pays a quarterly floating coupon of Compounded SOFR + 25 basis points and matures on 4 February, 2025, with a settlement date of 4 November, 2020.

The benchmark bond marks IADB’s return to the SOFR market after a one-year hiatus, and the issuer’s first bond linked to the index. An oversubscribed order-book facilitated tightening of the spread from the original SOFR + 27 area to a final SOFR + 25.