TIDM42BI
RNS Number : 3084S
Inter-American Development Bank
22 June 2018
PRICING SUPPLEMENT
Inter-American Development Bank
Global Debt Program
Series No.: 567
Tranche No.: 15
U.S.$100,000,000 Floating Rate Notes due July 15, 2021 (the
"Notes") as from June 18, 2018 to be consolidated and form a single
series with the Bank's U.S.$500,000,000 Floating Rate Notes due
July 15, 2021, issued on July 21, 2016 (the "Series 567 Tranche 1
Notes"), the Bank's U.S.$100,000,000 Floating Rate Notes due July
15, 2021, issued on August 30, 2016 (the "Series 567 Tranche 2
Notes"), the Bank's U.S.$100,000,000 Floating Rate Notes due July
15, 2021, issued on September 30, 2016 (the "Series 567 Tranche 3
Notes"), the Bank's U.S.$100,000,000 Floating Rate Notes due July
15, 2021, issued on October 11, 2016 (the "Series 567 Tranche 4
Notes"), the Bank's U.S.$100,000,000 Floating Rate Notes due July
15, 2021, issued on October 19, 2016 (the "Series 567 Tranche 5
Notes"), the Bank's U.S.$100,000,000 Floating Rate Notes due July
15, 2021, issued on October 26, 2016 (the "Series 567 Tranche 6
Notes"), the Bank's U.S.$100,000,000 Floating Rate Notes due July
15, 2021, issued on February 9, 2017 (the "Series 567 Tranche 7
Notes"), the Bank's U.S.$100,000,000 Floating Rate Notes due July
15, 2021, issued on February 24, 2017 (the "Series 567 Tranche 8
Notes"), the Bank's U.S.$150,000,000 Floating Rate Notes due July
15, 2021, issued on January 12, 2018 (the "Series 567 Tranche 9
Notes"), the Bank's U.S.$100,000,000 Floating Rate Notes due July
15, 2021, issued on January 24, 2018 (the "Series 567 Tranche 10
Notes"), the Bank's U.S.$100,000,000 Floating Rate Notes due July
15, 2021, issued on February 14, 2018 (the "Series 567 Tranche 11
Notes"), the Bank's U.S.$100,000,000 Floating Rate Notes due July
15, 2021, issued on April 3, 2018 (the "Series 567 Tranche 12
Notes"), the Bank's U.S.$100,000,000 Floating Rate Notes due July
15, 2021, issued on April 11, 2018 (the "Series 567 Tranche 13
Notes") and the Bank's U.S.$250,000,000 Floating Rate Notes due
July 15, 2021 (the "Series 567 Tranche 14 Notes")
Issue Price: 100.775 percent plus 63 days' accrued interest
Application has been made for the Notes to be admitted to
the
Official List of the United Kingdom Listing Authority and
to trading on the London Stock Exchange plc's
Regulated Market
Goldman Sachs International
The date of this Pricing Supplement is June 13, 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.: 567
Tranche No.: 15
2. Aggregate Principal Amount: U.S.$100,000,000
As from the Issue Date, the
Notes will be consolidated and
form a single series with the
Series 567 Tranche 1 Notes,
the Series 567 Tranche 2 Notes,
the Series 567 Tranche 3 Notes,
the Series 567 Tranche 4 Notes,
the Series 567 Tranche 5 Notes,
the Series 567 Tranche 6 Notes,
the Series 567 Tranche 7 Notes,
the Series 567 Tranche 8 Notes,
the Series 567 Tranche 9 Notes,
the Series 567 Tranche 10 Notes,
the Series 567 Tranche 11 Notes,
the Series 567 Tranche 12 Notes,
the Series 567 Tranche 13 Notes
and the Series 567 Tranche 14
Notes.
3. Issue Price: U.S.$101,221,000.00 which amount
represents the sum of (a) 100.775
percent of the Aggregate Principal
Amount plus (b) the amount of
U.S.$446,000.00 representing
63 days' accrued interest, inclusive.
4. Issue Date: June 18, 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) U.S.$1,000 and integral multiples
thereof
(Condition 1(b)):
7. Specified Currency United States Dollars (U.S.$
(Condition 1(d)): or USD) being the lawful currency
of the United States of America
8. Specified Principal Payment USD
Currency
(Conditions 1(d) and 7(h)):
9. Specified Interest Payment USD
Currency
(Conditions 1(d) and 7(h)):
10. Maturity Date July 15, 2021
(Condition 6(a)):
11. Interest Basis Variable Interest Rate (Condition
(Condition 5): 5(II))
12. Interest Commencement Date April 16, 2018
(Condition 5(III)):
13. Variable Interest Rate (Condition
5(II)):
(a) Calculation Amount (if different Not Applicable
than Principal Amount of the
Note):
(b) Business Day Convention: Modified Following Business
Day Convention
(c) Specified Interest Period: Not Applicable
(d) Interest Payment Date: Quarterly in arrear on January
15, April 15, July 15, and October
15, commencing on July 15, 2018,
up to and including the Maturity
Date.
Each Interest Payment Date is
subject to adjustment in accordance
with the Modified 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 Reuters
Rate Quotations for Reference
Rate:
(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: plus (+) 0.20 percent
(b) Variable Rate Day Count Act/360, adjusted
Fraction if not actual/360:
(c) Relevant Banking Center: London and New York
15. Relevant Financial Center: London and New York
16. Relevant Business Day: London and New York
17. Issuer's Optional Redemption No
(Condition 6(e)):
18. Redemption at the Option No
of the Noteholders (Condition
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 represents and 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 Issuer 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: Application has been made for
the Notes to be admitted to
the Official List of the United
Kingdom Listing Authority and
to trading on the London Stock
Exchange plc's Regulated Market.
2. Details of Clearance System Depository Trust Company (DTC);
Approved by the Bank and the Euroclear Bank S.A./N.V.; Clearstream
Global Agent and Clearance and Banking, société anonyme
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 material expenses
related to the issuance of the
Notes.
6. Codes:
(a) CUSIP 45818WBM7
(b) Common Code: 145669855
(c) ISIN: US45818WBM73
7. Identity of Dealer: Goldman Sachs International
8. Identity of Calculation Agent: The Global Agent, Citibank,
N.A., 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. Provisions for Registered
Notes:
(a) Individual Definitive Registered No
Notes Available on Issue Date:
(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
IDB Statement on Venezuela
On May 14, Venezuela passed the Bank's 180-day limit for payment
arrears for an amount of $88.3 million, placing the country in a
non-accrual status.
Venezuela's total loan arrears, including those that have not
yet reached the 180-day limit, stand at $212.4 million on a total
debt of $2.011 billion. Venezuela's debt to the IDB represents 1.6%
of the Bank's total assets as of March 31, 2018.
Under the IDB's guidelines on arrears, the Bank cannot undertake
any lending activities concerning Venezuela until its arrears are
cleared. As a matter of policy, the Bank does not reschedule its
sovereign-guaranteed loans.
The IDB does not expect Venezuela's non-accrual event to affect
the Bank's 2018 liquidity and capital ratios, which remain strong
and in full compliance with its financial policies. The IDB
anticipates that the event will not affect its 2018 lending
program.
Venezuela, which became a shareholder of the IDB when the
institution was founded in 1959, has reiterated its commitment to
the IDB and its intention to undertake regular payments. The IDB
acknowledges Venezuela's efforts and will continue to work with its
government to resolve the arrears.
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 63
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.
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: Gustavo Alberto De Rosa
Title: Chief Financial Officer and
General Manager, Finance Department
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IODUUSVRWBANUAR
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