Inter-American Investment Corporation Launches US$400 million 3-year Floating Rate Note Benchmark


Washington, D.C., September 24, 2014 — The Inter-American Investment Corporation (IIC), rated Aa2 / AA / AAA, today issued a RegS US$400 million 3-year floating rate note under its EMTN Program.

The new issue carries a coupon of 3 month USD Libor plus 14 basis points and will mature on 02 October 2017. Daiwa, Deutsche Bank and J.P. Morgan acted as joint-bookrunners on the deal.

This transaction represents the IIC’s second issue in the Eurobond market, after the successful inaugural 3 year US$350 million floating rate note issued in November 2012. Including this transaction, the IIC has completed its funding program for 2014.

Orders totaled over US$400 million, with participation from 22 different investors across the globe. In acknowledgement of the large order book size, the attractive price level, and superior quality of the demand, IIC decided to upsize the deal to US$400 million from the initial US$350 million target size.

The final distribution of the transaction, as well as the significantly lower spread over Libor compared with the inaugural benchmark issue which priced at 3 month USD Libor plus 35 bps, are reflective of the strong support IIC has gained as a new issuer, with global central banks / official institutions, fund managers, bank treasuries and private banks alike.

Eusebio Garre, Lead Funding Officer, said “This second benchmark is a key step in establishing the IIC as a regular issuer in the international capital markets. We regard the size and quality of the order book as a strong vote of confidence of the international investor community in the IIC’s credit and in its ability to successfully fulfill its development mandate.”

Bookrunner Comments

Christopher Brown, Head of Investment Banking at Daiwa Capital Markets, said “Another great success for IIC, today’s 3 year transaction attracting a well-diversified group of investors, some loyal from the last deal, some new, but all of exceptional quality. Originally planned as a US$350 million trade, the deal had to be upsized to US$400 million in order to satisfy demand, a testament to the extensive investor work IIC had undertaken prior to this and their inaugural issue two years ago. Congratulations to IIC, once again.”

Nigel Cree, Head of SSA Origination at Deutsche Bank, said “We congratulate IIC on its second successful floating rate note offering. The superior quality of demand including several new investors, and the consequent upsized transaction, is a testament to IIC’s extensive investor work in positioning IIC as a high-quality SSA issuer.  Deutsche Bank is honoured to be a part of this successful transaction.”

Sarah Lovedee, Vice President at J.P. Morgan, said “With this transaction, IIC has demonstrated its continued development as a regular issuer in the SSA markets - achieving an upsized deal size, a significant improvement in spread versus its debut issue and a high quality orderbook with central banks accounting for almost two thirds of the allocation.  All-in-all, an extremely successful return to the US Dollar market!”

Investor Distribution

By Geography               By Investor Type  
Europe 56% Central Banks / Official Instiutions 64%
Americas 38% Fund Managers 34%
Africa/Middle East 6% Banks / Private Banks 2%

Bond Summary Terms

Size: US$400 million
Coupon: 3m$L+ 14 bps
Format: RegS, off Issuer's EMTN Programme
Pricing Date: 24 September 2014
Settlement Date: 02 October 2014
Maturity Date: 02 October 2017
Issue Price: 100%
Denominations: US$100k+1k
ISIN: XS1114453621
Joint Bookrunners: Daiwa Capital Markets, Deutsche Bank, J.P. Morgan













Overview of the IIC

  • The Inter-American Investment Corporation (IIC) is a multilateral investment institution that is part of the Inter-American Development Bank (IDB) Group.
  • The IIC’s mission is to promote economic development in its Latin American and Caribbean developing member countries by fostering the establishment, expansion, and modernization of private enterprises in a manner complementing the activities of the IDB, with the focus on small and medium-size enterprises.
  • Website:

Contact: Eusebio Garre

Telephone: +1 (202) 623-1626