IDB launches $1bn sustainable development bond

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The Inter-American Development Bank (IDB) upgraded its first five year $500m global sustainable development bond to $1bn under its new framework.

The Inter-American Development Bank has launched its first five year $1bn global sustainable development bond under its new framework.

The transaction marks the first US Dollar floating rate note benchmark issued under IDB’s Sustainable Development Bond framework, supporting its strategic priorities aligned to all 17 United Nations Sustainable Development Goals.

Originally planned as a $500m bond, demand from investors saw it increased to $1bn – another demonstration of rising global demand for verifiable sustainable investments.

Laura Fan, head of funding at the IDB said: “Strong investor interest in ESG products allowed us to successfully print our inaugural 5-year SOFR FRN in Sustainable Development Bond format. We continue to develop our SOFR benchmark curve and hope to add more maturities later this year”.

Almost 40% of the total investment was drawn from beyond the Americas, and private institutions made up almost nine tenths of the total finance raised.

Sustainable and green investors have quickly become a major focus for international development organisations, and efforts are underway to establish strong verification, with both the OECD’s Blue Dot prototype, and the EU’s green investment taxonomy launching this year.