TIDM42BI
RNS Number : 8209M
Inter-American Development Bank
01 May 2018
PRICING SUPPLEMENT
Inter-American Development Bank
Global Debt Program
Series No.: 500
Tranche No.: 15
U.S.$150,000,000 Floating Rate Notes due January 15, 2022 (the
"Notes") as from May 1, 2018 to be consolidated and form a single
series with the Bank's U.S.$250,000,000 Floating Rate Notes due
January 15, 2022, issued on January 26, 2015 (the "Series 500
Tranche 1 Notes"), the Bank's U.S.$100,000,000 Floating Rate Notes
due January 15, 2022, issued on March 4, 2015 (the "Series 500
Tranche 2 Notes"), the Bank's U.S.$150,000,000 Floating Rate Notes
due January 15, 2022, issued on January 31, 2017 (the "Series 500
Tranche 3 Notes"), the Bank's U.S.$100,000,000 Floating Rate Notes
due January 15, 2022, issued on February 24, 2017 (the "Series 500
Tranche 4 Notes"), the Bank's U.S.$100,000,000 Floating Rate Notes
due January 15, 2022, issued on March 13, 2017 (the "Series 500
Tranche 5 Notes"), the Bank's U.S.$150,000,000 Floating Rate Notes
due January 15, 2022, issued on March 17, 2017 (the "Series 500
Tranche 6 Notes"), the Bank's U.S.$150,000,000 Floating Rate Notes
due January 15, 2022, issued on March 23, 2017 (the "Series 500
Tranche 7 Notes"), the Bank's U.S.$100,000,000 Floating Rate Notes
due January 15, 2022, issued on April 27, 2017 (the "Series 500
Tranche 8 Notes"), the Bank's U.S.$100,000,000 Floating Rate Notes
due January 15, 2022, issued on November 28, 2017 (the "Series 500
Tranche 9 Notes"), the Bank's U.S.$150,000,000 Floating Rate Notes
due January 15, 2022, issued on February 15, 2018 (the "Series 500
Tranche 10 Notes"), the Bank's U.S.$100,000,000 Floating Rate Notes
due January 15, 2022, issued on February 23, 2018 (the "Series 500
Tranche 11 Notes"), the Bank's U.S.$200,000,000 Floating Rate Notes
due January 15, 2022, issued on March 22, 2018 (the "Series 500
Tranche 12 Notes"), the Bank's U.S.$100,000,000 Floating Rate Notes
due January 15, 2022, issued on April 10, 2018 (the "Series 500
Tranche 13 Notes") and the Bank's U.S.$100,000,000 Floating Rate
Notes due January 15, 2022, issued on April 26, 2018 (the "Series
500 Tranche 14 Notes")
Issue Price: 100.044 percent plus 15 days' accrued interest
No application has been made to list the Notes on any stock
exchange.
Morgan Stanley
The date of this Pricing Supplement is April 26, 2018.
Terms used herein shall be deemed to be defined as such for the
purposes of the Terms and Conditions (the "Conditions") set forth
in the Prospectus dated January 8, 2001 (the "Prospectus") (which
for the avoidance of doubt does not constitute a prospectus for the
purposes of Part VI of the United Kingdom Financial Services and
Markets Act 2000 or a base prospectus for the purposes of Directive
2003/71/EC of the European Parliament and of the Council). This
Pricing Supplement must be read in conjunction with the Prospectus.
This document is issued to give details of an issue by the
Inter-American Development Bank (the "Bank") under its Global Debt
Program and to provide information supplemental to the Prospectus.
Complete information in respect of the Bank and this offer of the
Notes is only available on the basis of the combination of this
Pricing Supplement and the Prospectus.
MIFID II product governance / Retail investors, professional
investors and ECPs target market - See "General
Information-Additional Information Regarding the Notes-Matters
relating to MiFID II" below.
Terms and Conditions
The following items under this heading "Terms and Conditions"
are the particular terms which relate to the issue the subject of
this Pricing Supplement. These are the only terms which form part
of the form of Notes for such issue.
1. Series No.: 500
Tranche No.: 15
2. Aggregate Principal Amount: U.S.$150,000,000
As from the Issue Date, the Notes
will be consolidated and form a single
series with the Series 500 Tranche
1 Notes, the Series 500 Tranche 2
Notes, the Series 500 Tranche 3 Notes,
the Series 500 Tranche 4 Notes, the
Series 500 Tranche 5 Notes, the Series
500 Tranche 6 Notes, the Series 500
Tranche 7 Notes, the Series 500 Tranche
8 Notes, the Series 500 Tranche 9
Notes, the Series 500 Tranche 10
Notes, the Series 500 Tranche 11
Notes, the Series 500 Tranche 12
Notes, the Series 500 Tranche 13
Notes and the Series 500 Tranche
14 Notes.
3. Issue Price: U.S.$150,213,000, which amount represents
the sum of (a) 100.044 percent of
the Aggregate Principal Amount plus
(b) the amount of U.S.$147,000 representing
15 days' accrued interest, inclusive.
4. Issue Date: May 1, 2018
5. Form of Notes
(Condition 1(a)): Registered only, as further provided
in paragraph 9 of "Other Relevant
Terms" below
6. Authorized Denomination(s)
(Condition 1(b)): U.S.$1,000 and integral multiples
thereof
7. Specified Currency
(Condition 1(d)): United States Dollars (U.S.$) being
the lawful currency of the United
States of America
8. Specified Principal Payment
Currency
(Conditions 1(d) and 7(h)): U.S.$
9. Specified Interest Payment
Currency
(Conditions 1(d) and 7(h)): U.S.$
10. Maturity Date
(Condition 6(a); Fixed
Interest Rate): January 15, 2022
11. Interest Basis
(Condition 5): Variable Interest Rate (Condition
5(II))
12. Interest Commencement Date
(Condition 5(III)): April 16, 2018
13. Variable Interest Rate
(Condition 5(II)):
(a) Calculation Amount
(if different than Principal Not Applicable
Amount of the Note):
(b) Business Day Convention: Following Business Day Convention
(c) Specified Interest Not Applicable
Period:
(d) Interest Payment Date: Quarterly in arrear on January 15,
April 15, July 15 and October 15
in each year, commencing on July
15, 2018, up to and including the
Maturity Date.
Each Interest Payment Date is subject
to adjustment in accordance with
the Following Business Day Convention.
(e) Reference Rate: 3-Month USD-LIBOR-BBA.
"3-Month USD-LIBOR-BBA" means the
rate for deposits in USD for a period
of 3 months which appears on Reuters
Screen LIBOR01 (or such other page
that may replace that page on that
service or a successor service) as
of the Relevant Time on the Interest
Determination Date;
"Relevant Time" means 11:00 a.m.,
London time;
"Interest Determination Date" means
the second London Banking Day prior
to the first day of the relevant
Interest Period; and
"London Banking Day" means a day
on which commercial banks are open
for general business, including dealings
in foreign exchange and foreign currency
deposits, in London.
If such rate does not appear on Reuters
Screen LIBOR01 (or such other page
that may replace that page on that
service or a successor service) at
the Relevant Time on the Interest
Determination Date, then the rate
for 3-Month USD-LIBOR-BBA shall be
determined on the basis of the rates
at which deposits in USD are offered
at the Relevant Time on the Interest
Determination Date by five major
banks in the London interbank market
(the "Reference Banks") as selected
by the Calculation Agent, to prime
banks in the London interbank market
for a period of 3 months commencing
on the first day of the relevant
Interest Period and in an amount
that is representative for a single
transaction in the London interbank
market at the Relevant Time. The
Calculation Agent will request the
principal London office of each of
the Reference Banks to provide a
quotation of its rate.
If at least two such quotations are
provided, the rate for 3-Month USD-LIBOR-BBA
shall be the arithmetic mean of such
quotations. If fewer than two quotations
are provided as requested, the rate
for 3-Month USD-LIBOR-BBA shall be
the arithmetic mean of the rates
quoted by major banks in New York
City, selected by the Calculation
Agent, at approximately 11:00 a.m.,
New York City time, on the first
day of the relevant Interest Period
for loans in USD to leading European
banks for a period of 3 months commencing
on the first day of the relevant
Interest Period and in an amount
that is representative for a single
transaction in the London interbank
market at such time.
If no quotation is available or if
the Calculation Agent determines
in its sole discretion that there
is no suitable bank that is prepared
to provide the quotes, the Calculation
Agent will determine the rate for
3-Month USD-LIBOR-BBA for the Interest
Determination Date in question in
a manner that it deems commercially
reasonable by reference to such additional
resources as it deems appropriate.
(f) Primary Source for
Interest Rate Quotations
for Reference Rate: Reuters
(g) Calculation Agent: See "8. Identity of Calculation Agent"
under "Other Relevant Terms"
14. Other Variable Interest
Rate Terms (Conditions
5(II) and (III)):
(a) Spread: Not applicable
(b) Variable Rate Day Count
Fraction if not actual/360: Act/360, adjusted
(c) Relevant Banking Center: London and New York
15. Relevant Financial Center: London and New York
16. Relevant Business Day(s): London and New York
17. Issuer's Optional Redemption
(Condition 6(e)): No
18. Redemption at the Option
of the Noteholders (Condition No
6(f)):
19. Governing Law: New York
20. Selling Restrictions:
(a) United States: Under the provisions of Section 11(a)
of the Inter-American Development
Bank Act, the Notes are exempted
securities within the meaning of
Section 3(a)(2) of the U.S. Securities
Act of 1933, as amended, and Section
3(a)(12) of the U.S. Securities Exchange
Act of 1934, as amended.
(b) United Kingdom: The Dealer agrees that it has complied
and will comply with all applicable
provisions of the Financial Services
and Markets Act 2000 with respect
to anything done by it in relation
to such Notes in, from or otherwise
involving the United Kingdom.
(c) General: No action has been or will be taken
by the Bank that would permit a public
offering of the Notes, or possession
or distribution of any offering material
relating to the Notes in any jurisdiction
where action for that purpose is
required. Accordingly, the Dealer
agrees that it will observe all applicable
provisions of law in each jurisdiction
in or from which it may offer or
sell Notes or distribute any offering
material.
Other Relevant Terms
1. Listing: None
2. Details of Clearance System The Depository Trust Company (DTC);
Approved by the Bank and Euroclear Bank SA/NV; Clearstream
the Global Agent and Clearance Banking, société anonyme
and Settlement Procedures:
3. Syndicated: No
4. Commissions and Concessions: No commissions or concessions are
payable in respect of the Notes.
5. Estimated Total Expenses: None. The Dealer has agreed to pay
for all expenses related to the issuance
of the Notes.
6. Codes:
(a) CUSIP: 45818WBA3
(b) Common Code: 117380670
(c) ISIN: US45818WBA36
7. Identity of Dealer: Morgan Stanley & Co. International
plc
8. Identity of Calculation The Global Agent, Citibank, N.A.,
Agent: London branch, will act as the Calculation
Agent.
All determinations of the Calculation
Agent shall (in the absence of manifest
error) be final and binding on all
parties (including, but not limited
to, the Bank and the Noteholders)
and shall be made in its sole discretion
in good faith and in a commercially
reasonable manner in accordance with
a calculation agent agreement between
the Bank and the Calculation Agent.
9. Provision for Registered
Notes:
(a) Individual Definitive
Registered Notes Available
on Issue Date: No
(b) DTC Global Note(s): Yes, issued in accordance with the
Global Agency Agreement, dated January
8, 2001, as amended, among the Bank,
Citibank, N.A. as Global Agent, and
the other parties thereto.
(c) Other Registered Global No
Notes:
General Information
Additional Information regarding the Notes
1. Matters relating to MiFID II
The Bank does not fall under the scope of application of the
MiFID II regime. Consequently, the Bank does not qualify as an
"investment firm", "manufacturer" or "distributor" for the purposes
of MiFID II.
MIFID II product governance / Retail investors, professional
investors and ECPs target market - Solely for the purposes of the
manufacturer's product approval process, the target market
assessment in respect of the Notes has led to the conclusion that:
(i) the target market for the Notes is eligible counterparties,
professional clients and retail clients, each as defined in MiFID
II; and (ii) all channels for distribution of the Notes are
appropriate. Any person subsequently offering, selling or
recommending the Notes (a "distributor") should take into
consideration the manufacturer's target market assessment; however,
a distributor subject to MiFID II is responsible for undertaking
its own target market assessment in respect of the Notes (by either
adopting or refining the manufacturer's target market assessment)
and determining appropriate distribution channels.
For the purposes of this provision, the expression MiFID II
means Directive 2014/65/EU, as amended.
2. United States Federal Income Tax Matters
The following supplements the discussion under the "Tax Matters"
section of the Prospectus regarding the U.S. federal income tax
treatment of the Notes, and is subject to the limitations and
exceptions set forth therein. Any tax disclosure in the Prospectus
or this pricing supplement is of a general nature only, is not
exhaustive of all possible tax considerations and is not intended
to be, and should not be construed to be, legal, business or tax
advice to any particular prospective investor. Each prospective
investor should consult its own tax advisor as to the particular
tax consequences to it of the acquisition, ownership, and
disposition of the Notes, including the effects of applicable U.S.
federal, state, and local tax laws and non-U.S. tax laws and
possible changes in tax laws.
Due to a change in law since the date of the Prospectus, the
second paragraph of "-Payments of Interest" under the "United
States Holders" section should be updated to read as follows:
"Interest paid by the Bank on the Notes constitutes income from
sources outside the United States and will generally be "passive"
income for purposes of computing the foreign tax credit."
The Notes should be treated as variable rate debt instruments
that are issued without original issue discount. Subject to the
discussion in the following paragraph regarding amortizable bond
premium, a United States holder will generally be taxed on interest
on the Notes as ordinary income at the time such holder receives
the interest or when it accrues, depending on the holder's method
of accounting for tax purposes. However, the portion of the first
interest payment on the Notes that represents a return of the 15
days of accrued interest that a United States holder paid as part
of the Issue Price of the Notes will not be treated as an interest
payment for United States federal income tax purposes, and will
accordingly not be includible in income. Upon the sale, exchange,
repurchase or maturity of the Notes, a United States holder should
generally recognize gain or loss equal to the difference between
the amount realized by such holder, excluding any amounts
attributable to accrued but unpaid interest (which will be treated
as interest payments), and such holder's tax basis in the Notes.
Such gain or loss generally should be capital gain or loss and
should be treated as long-term capital gain or loss to the extent
the United States holder has held the Notes for more than one year.
Long-term capital gain of individual taxpayers may be eligible for
reduced rates of taxation. The deductibility of capital loss is
subject to significant limitations.
Because the purchase price of the Notes exceeds the principal
amount of the Notes, a United States holder may elect to treat the
excess (after excluding the portion of the purchase price
attributable to accrued interest) as amortizable bond premium. A
United States holder that makes this election would reduce the
amount required to be included in such holder's income each year
with respect to interest on the Notes by the amount of amortizable
bond premium allocable to that year, based on the Note's yield to
maturity. If a United States holder makes an election to amortize
bond premium, the election would apply to all debt instruments,
other than debt instruments the interest on which is excludible
from gross income, that the United States holder holds at the
beginning of the first taxable year to which the election applies
or that such holder thereafter acquires, and the United States
holder may not revoke the election without the consent of the
Internal Revenue Service.
Information with Respect to Foreign Financial Assets. Owners of
"specified foreign financial assets" with an aggregate value in
excess of U.S.$50,000 (and in some circumstances, a higher
threshold) may be required to file an information report with
respect to such assets with their tax returns. "Specified foreign
financial assets" may include financial accounts maintained by
foreign financial institutions, as well as the following, but only
if they are held for investment and not held in accounts maintained
by financial institutions: (i) stocks and securities issued by
non-United States persons, (ii) financial instruments and contracts
that have non-United States issuers or counterparties, and (iii)
interests in foreign entities. Holders are urged to consult their
tax advisors regarding the application of this reporting
requirement to their ownership of the Notes.
Medicare Tax. A United States holder that is an individual or
estate, or a trust that does not fall into a special class of
trusts that is exempt from such tax, is subject to a 3.8% tax (the
"Medicare tax") on the lesser of (1) the United States holder's
"net investment income" (or "undistributed net investment income"
in the case of an estate or trust) for the relevant taxable year
and (2) the excess of the United States holder's modified adjusted
gross income for the taxable year over a certain threshold (which
in the case of individuals is between U.S.$125,000 and
U.S.$250,000, depending on the individual's circumstances). A
holder's net investment income will generally include its interest
income and its net gains from the disposition of Notes, unless such
interest income or net gains are derived in the ordinary course of
the conduct of a trade or business (other than a trade or business
that consists of certain passive or trading activities). United
States holders that are individuals, estates or trusts are urged to
consult their tax advisors regarding the applicability of the
Medicare tax to their income and gains in respect of their
investment in the Notes.
INTER-AMERICAN DEVELOPMENT BANK
By:
Name: F. Ramon Ruiz Garcia
Title: Division Chief, Treasury - Treasurer
This information is provided by RNS
The company news service from the London Stock Exchange
END
IODUAOARWRAVRUR
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