IADB launches $600m SOFR Index-linked global bond
The Inter-American Development Bank has priced a new $600 million ten-year benchmark bond linked to the Secured Overnight Financing Rate (SOFR) index.
The transaction pays a quarterly floating coupon of Compounded SOFR + 36 basis points and matures on 10 June, 2031. The settlement date is 10 June, 2021. BMO Capital Markets, Wells Fargo Securities are joint lead managers.
The transaction marks IADB’s longest SOFR benchmark issued to date, following the $500 million seven-year SOFR-linked benchmark priced in March 2021. At a final spread of SOFR +36 basis points, this transaction represents the tightest ever SSA SOFR transaction issued in the ten-year tenor and the longest-dated SSA SOFR FRN outstanding. Joint lead managers for this transaction are BMO Capital Markets and Wells Fargo Securities.
