TIDM42BI
RNS Number : 3104S
Inter-American Development Bank
22 June 2018
PRICING SUPPLEMENT
Inter-American Development Bank
Global Debt Program
Series No.: 658
U.S.$20,000,000 2.975 percent Notes due June 15, 2023
Issue Price: 100.00 percent
No application has been made to list the Notes on any stock
exchange.
BMO Capital Markets
The date of this Pricing Supplement is June 19, 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.
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.: 658
2. Aggregate Principal U.S.$20,000,000
Amount:
3. Issue Price: U.S.$20,000,000 which
is 100.00 percent of
the Aggregate Principal
Amount
4. Issue Date: June 22, 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) U.S.$
and 7(h)):
9. Specified Interest
Payment Currency U.S.$
(Conditions 1(d)
and 7(h)):
10. Maturity Date
(Condition 6(a); June 15, 2023
Fixed Interest Rate):
11. Interest Basis
(Condition 5): Fixed Interest Rate
(Condition 5(I))
12. Interest Commencement
Date Issue Date (June 22,
(Condition 5(III)): 2018)
13. Fixed Interest Rate
(Condition 5(I)):
(a) Interest Rate: 2.975 percent per annum
(b) Fixed Rate Interest Semi-annually in arrear
Payment Date(s): on June 15 and December
15 in each year, commencing
on December 15, 2018
Each Interest Payment
Date is subject to adjustment
in accordance with the
Following Business Day
Convention with no adjustment
to the amount of interest
otherwise calculated.
(c) Initial Broken U.S.$14.30
Amount
(d) Fixed Rate Day 30/360, unadjusted
Count Fraction(s):
14. Relevant Financial London and New York
Center:
15. Relevant Business London and New York
Days:
16. Issuer's Optional
Redemption (Condition No
6(e)):
17. Redemption at the
Option of the Noteholders No
(Condition 6(f)):
18. Governing Law: New York
19. Selling Restrictions: Under the provisions
(a) United States: 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.
21. Amendment to Condition Condition 7(a)(i) is
7(a)(i): hereby amended by deleting
the first sentence thereof
and replacing it with
the following: "Payments
of principal and interest
in respect of Registered
Notes shall be made to
the person shown on the
Register at the close
of business on the business
day before the due date
for payment thereof (the
"Record Date")."
22. Amendment to Condition The following shall apply
7(h): to Notes any payments
in respect of which are
payable in a Specified
Currency other than United
States Dollars:
Condition 7(h) is hereby
amended by deleting the
words "the noon buying
rate in U.S. dollars
in the City of New York
for cable transfers for
such Specified Currency
as published by the Federal
Reserve Bank of New York
on the second Business
Day prior to such payment
or, if such rate is not
available on such second
Business Day, on the
basis of the rate most
recently available prior
to such second Business
Day" and replacing them
with the words "a U.S.
dollar/Specified Currency
exchange rate determined
by the Calculation Agent
as of the second Business
Day prior to such payment,
or, if the Calculation
Agent determines that
no such exchange rate
is available as of such
second Business Day,
on the basis of the exchange
rate most recently available
prior to such second
Business Day. In making
such determinations,
the Calculation Agent
shall act in good faith
and in a commercially
reasonable manner having
taken into account all
available information
that it shall deem relevant".
If applicable and so
appointed, and unless
otherwise defined herein,
the "Calculation Agent"
referred to in amended
Condition 7(h) shall
be the Global Agent under
the Bank's Global Debt
Program - namely, Citibank,
N.A., London Branch,
or its duly authorized
successor.
Other Relevant Terms
1. Listing: None
2. Details of Clearance
System Approved by Depository Trust Company
the Bank and the (DTC); Euroclear Bank
Global Agent and S.A./N.V.; Clearstream
Clearance and Banking, société
Settlement Procedures: anonyme
3. Syndicated: No
4. Commissions and Concessions: No commissions or concession
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) ISIN: US45818WBW55
(b) CUSIP: 45818WBW5
7. Identity of Dealer: BMO Capital Markets Corp.
8. Provisions for Registered
Notes:
(a) Individual Definitive No
Registered 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 No
Global 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. 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."
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
IODUURNRWSANUAR
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