TIDM42BI
RNS Number : 0800W
Inter-American Development Bank
27 July 2018
PRICING SUPPLEMENT
Inter-American Development Bank
Global Debt Program
Series No.: 553
Tranche No.: 10
IDR 360,000,000,000 7.875 percent Notes due March 14, 2023 (the
"Notes") as from July 26, 2018 to be consolidated and form a single
series with the Bank's
IDR 950,000,000,000 7.875 percent Notes due March 14, 2023,
issued on March 14, 2016 (the "Series 553 Tranche 1 Notes"), the
Bank's IDR 327,250,000,000 7.875 percent Notes due March 14, 2023,
issued on November 18, 2016 (the "Series 553 Tranche 2 Notes"), the
Bank's IDR 334,000,000,000 7.875 percent Notes due March 14, 2023,
issued on May 24, 2017 (the "Series 553 Tranche 3 Notes"), the
Bank's
IDR 1,332,000,000,000 7.875 percent Notes due March 14, 2023,
issued on July 27, 2017 (the "Series 553 Tranche 4 Notes"), the
Bank's IDR 250,000,000,000 7.875 percent Notes due March 14, 2023,
issued on September 19, 2017 (the "Series 553 Tranche 5 Notes"),
the Bank's IDR 1,645,000,000,000 7.875 percent Notes due March 14,
2023, issued on November 14, 2017 (the "Series 553 Tranche 6
Notes"), the Bank's IDR 800,000,000,000 7.875 percent Notes due
March 14, 2023, issued on December 7, 2017 (the "Series 553 Tranche
7 Notes"), the Bank's IDR 250,000,000,000 7.875 percent Notes due
March 14, 2023, issued on December 18, 2017 (the "Series 553
Tranche 8 Notes") and the Bank's IDR 670,800,000,000 7.875 percent
Notes due March 14, 2023, issued on January 24, 2018 (the "Series
553 Tranche 9 Notes")
payable in United States Dollars
Issue Price: 100.91 percent plus 134 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
Deutsche Bank
The date of this Pricing Supplement is as of July 23, 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.: 553
Tranche No.: 10
2. Aggregate Principal Amount: IDR 360,000,000,000
As from the Issue Date, the Notes
will be consolidated and form a
single series with the Series 553
Tranche 1 Notes, the Series 553
Tranche 2 Notes, the Series 553
Tranche 3 Notes, the Series 553
Tranche 4 Notes, the Series 553
Tranche 5 Notes, the Series 553
Tranche 6 Notes, the Series 553
Tranche 7 Notes, the Series 553
Tranche 8 Notes and the Series
553 Tranche 9 Notes.
3. Issue Price: IDR 373,683,945,205 which amount
represents the sum of (a) 100.91
percent of the Aggregate Principal
Amount plus (b) the amount of IDR
10,407,945,205 representing 134
days' accrued interest, inclusive.
The Issue Price will be payable
in USD in the amount of USD 25,964,698.81
at the agreed rate of 14,392 IDR
per one USD.
4. Issue Date: July 26, 2018
5. Form of Notes
(Condition 1(a)): Registered only, as further provided
in paragraph 9(c) of "Other Relevant
Terms" below.
6. Authorized Denomination(s)
(Condition 1(b)): IDR 10,000,000 and integral multiples
thereof
7. Specified Currency
(Condition 1(d)): The lawful currency of the Republic
of Indonesia ("Indonesian Rupiah"
or "IDR"), provided that all payments
in respect of the Notes will be
made in United States Dollars ("U.S.$"
or "USD")
8. Specified Principal Payment
Currency
(Conditions 1(d) and 7(h)): USD
9. Specified Interest Payment
Currency USD
(Conditions 1(d) and 7(h)):
10. Maturity Date
(Condition 6(a); Fixed March 14, 2023
Interest Rate):
11. Interest Basis
(Condition 5): Fixed Interest Rate (Condition
5(I))
12. Interest Commencement Date
(Condition 5(III)): March 14, 2018
13. Fixed Interest Rate (Condition Condition 5(I) as amended and supplemented
5(I)): below, shall apply to the Notes.
The bases of the Calculation of
the Interest Amount, Interest Payment
Dates and default interest are
as set out below.
(a) Interest Rate: 7.875 percent per annum
(b) Business Day Convention: Following Business Day Convention
(c) Fixed Rate Interest
Payment Date(s): Annually on each March 14, commencing
on March 14, 2019 and ending on,
and including, the Maturity Date.
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.
(d) Interest Period: Each period from and including
each Interest Payment Date to but
excluding the next following Interest
Payment Date, provided that the
initial Interest Period will commence
on and include the Interest Commencement
Date, and the final Interest Period
will end on but exclude the Maturity
Date.
For the purposes of the calculation
of the Interest Amount payable
for any Interest Period, there
shall be no adjustment pursuant
to the Business Day Convention
specified above.
(e) Fixed Rate Day Count
Fraction(s): Actual/Actual ICMA
(f) Calculation of Interest As soon as practicable and in accordance
Amount: with the procedure specified herein,
the Calculation Agent will determine
the IDR Rate (as defined below)
and calculate the amount of interest
payable (the "Interest Amount")
with respect to each minimum Authorized
Denomination for the relevant Interest
Period.
The Interest Amount with respect
to any Interest Period shall be
a USD amount calculated on the
relevant Rate Fixing Date (as defined
below) as follows:
7.875% times the minimum Authorized
Denomination
times
the Fixed Rate Day Count Fraction
divided by
the IDR Rate
(and rounding, if necessary, the
entire resulting figure to the
nearest two decimal places, with
USD 0.005 being rounded upwards).
The "IDR Rate" means the rate determined
by the Calculation Agent that is
equal to the USD/IDR weighted average
spot rate in the interbank market,
based on traded USD/IDR spot foreign
exchange transactions during a
specified time period which are
captured on a real time basis,
expressed as the amount of IDR
per one USD, for settlement in
two Fixing Business Days, as published
by Bank Indonesia as the "Jakarta
Interbank Spot Dollar Rate USD
- IDR", which appears on Bank Indonesia's
website (www.bi.go.id), or as published
on Thomson Reuters Screen JISDOR
Page (or any replacement page or
replacement service as may be implemented
for the purposes of displaying
the USD/IDR weighted average spot
rate), or as otherwise made available
by Bank Indonesia (or its successor
as administrator), at approximately
10:00 a.m., Jakarta time, on the
Rate Fixing Date. Fallback Provisions
apply as set out below.
The "Rate Fixing Date" means the
date that is five (5) Fixing Business
Days prior to the applicable Fixed
Rate Interest Payment Date or Maturity
Date, as the case may be. The Rate
Fixing Date shall be subject to
adjustment as follows: if the scheduled
date of the Rate Fixing Date is
not a Relevant Business Day, then
the Rate Fixing Date will be the
first preceding day that is a Relevant
Business Day.
"Fixing Business Day" means a day
(other than a Saturday or a Sunday)
on which banks and foreign exchange
markets are open for business in
Jakarta.
"Fallback Provisions": Should no
USD/IDR weighted average spot rate
appear on Bank Indonesia's website
(www.bi.go.id) as the "Jakarta
Interbank Spot Dollar Rate USD
- IDR", or on Thomson Reuters Screen
JISDOR Page (or on such replacement
page or replacement service as
described above), or be otherwise
made available by Bank Indonesia
(or its successor as administrator),
on the Rate Fixing Date, then the
IDR Rate for such Rate Fixing Date
shall be determined by the Calculation
Agent by requesting quotations
for the mid USD/IDR spot foreign
exchange rate from five banks active
in the USD/IDR currency and foreign
exchange markets as selected by
the Calculation Agent (such banks,
the "Reference Banks") either (i)
at or about 10:00 a.m. Jakarta
time on the first day (other than
a Saturday or a Sunday) following
the Rate Fixing Date, if such day
is a Relevant Business Day or (ii)
at or about 10:00 a.m. Jakarta
time on the Rate Fixing Date, if
the first day (other than a Saturday
or a Sunday) following the Rate
Fixing Date is not a Relevant Business
Day.
If five or four quotations are
provided by Reference Banks as
requested, the IDR Rate shall be
the arithmetic mean (rounded to
the nearest whole IDR, with IDR
0.5 being rounded upwards) of the
remaining three or two such quotations
(expressed as the number of IDR
per one USD), as the case may be,
after disregarding the highest
quotation and the lowest quotation;
provided, that if two or more such
quotations are the highest such
quotations, then only one of such
quotations shall be disregarded;
and provided further, that if two
or more such quotations are the
lowest such quotations, then only
one of such lowest quotations shall
be disregarded.
If only three or two quotations
are provided as requested, the
IDR Rate shall be the arithmetic
mean (rounded to the nearest whole
IDR, with IDR 0.5 being rounded
upwards) of such quotations (expressed
as the number of IDR per one USD).
If only one or no quotations are
provided as requested, or if the
Calculation Agent determines in
its sole discretion that no suitable
Reference Banks active in the USD/IDR
currency or foreign exchange markets
will provide quotations, the Calculation
Agent shall be entitled to calculate
the IDR Rate acting in good faith
in a commercially reasonable manner,
having taken into account relevant
market practice, by reference to
such additional sources as it deems
appropriate; and in such case the
Calculation Agent shall notify
the Bank and the Global Agent as
soon as reasonably practicable
that the IDR Rate is to be so determined.
(g) Calculation Agent: See "8. Identity of Calculation
Agent" under "Other Relevant Terms"
(h) Notification: If the Interest Amount payable
on any Fixed Rate Interest Payment
Date or the Redemption Amount,
as the case may be, is calculated
in any manner other than by utilizing
the USD/IDR reference rate that
appears on Bank Indonesia's website
(www.bi.go.id), or on Thomson Reuters
Screen JISDOR Page (or on such
replacement page as described above),
or as otherwise made available
by Bank Indonesia (or its successor
as administrator), the Global Agent
on behalf of the Bank shall give
notice as soon as reasonably practicable
to the Noteholders in accordance
with Condition 14 (Notices).
14. Relevant Financial Center: New York, London and Jakarta
15. Relevant Business Day: New York, London and Jakarta
16. Redemption Amount (Condition
6(a)): The Redemption Amount with respect
to each minimum Authorized Denomination
will be a USD amount calculated
by the Calculation Agent as of
the Rate Fixing Date with respect
to the Maturity Date as follows:
minimum Authorized Denomination
divided by
the IDR Rate
(and rounding, if necessary, the
entire resulting figure to the
nearest 2 decimal places, with
USD 0.005 being rounded upwards).
17. Issuer's Optional Redemption
(Condition 6(e)): No
18. Redemption at the Option
of the Noteholders (Condition No
6(f)):
19. Early Redemption Amount
(including accrued interest, In the event the Notes become due
if applicable) (Condition and payable as provided in Condition
9): 9 (Default), the Early Redemption
Amount with respect to each minimum
Authorized Denomination will be
a USD amount equal to the Redemption
Amount that is determined in accordance
with "16. Redemption Amount" plus
accrued and unpaid interest, if
any, as determined in accordance
with "13. Fixed Interest Rate (Condition
5(I))"; provided, that for purposes
of such determination, the "Rate
Fixing Date" shall be the date
that is five Fixing Business Days
prior to the date upon which the
Notes become due and payable as
provided in Condition 9 (Default).
20. Governing Law: New York
21. 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 the Notes
in, from or otherwise involving
the United Kingdom.
(c) Indonesia: The Notes are not and will not
be registered with the Financial
Services Authority previously known
as the Capital Market and Financial
Institutions Supervisory Agency
(the "OJK") in Indonesia. As such,
the Notes (including the distribution
and dissemination of the Pricing
Supplement, other written materials
either through advertisements or
other media authorized) are not
authorized by the OJK for their
sale by public offering in the
Indonesian territory and/or to
Indonesian entities or residents
in the Indonesian territory in
circumstances which constitute
a public offering of securities
under the Indonesian Law No. 8/1995
regarding Capital Markets. Likewise,
the Notes and the Pricing Supplement
have not been reviewed, registered
or authorized by the Central Bank
(Bank Indonesia) for their distribution
through banking institutions in
Indonesia.
(d) 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
Approved by the Bank and
the
Global Agent and Clearance Euroclear Bank SA/NV and Clearstream,
and Luxembourg
Settlement Procedures:
3. Syndicated: No
4. Commissions and Concessions: No commissions or concessions are
payable in respect of the Notes.
An affiliate of the Dealer has
arranged a swap with the Bank in
connection with this transaction
and will receive amounts thereunder
that may comprise compensation.
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) Common Code: 137749645
(b) ISIN: XS1377496457
7. Identity of Dealer: Deutsche Bank AG, London Branch
8. Identity of Calculation The Toronto-Dominion Bank, Toronto
Agent:
In relation to the Rate Fixing
Date, as soon as is reasonably
practicable after the determination
of the IDR Rate in relation thereto,
on the date on which the relevant
IDR Rate is to be determined (or,
if such date is not a Relevant
Business Day, then on the next
succeeding Relevant Business Day),
the Calculation Agent shall notify
the Issuer and the Global Agent
of the IDR Rate, and the Interest
Amount, and the Redemption Amount
or Early Redemption Amount, as
the case may be, in relation thereto.
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 No
on Issue Date:
(b) DTC Global Note(s): No
(c) Other Registered Global Yes, issued in accordance with
Notes: the Global Agency Agreement, dated
January 8, 2001, among the Bank,
Citibank, N.A., as Global Agent,
and the other parties thereto.
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."
Subject to the discussion below 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 134
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 only be taxable to the extent that the U.S. dollar
amount received in respect of such accrued interest differs from
the U.S. dollar amount paid by the holder in respect of such
interest. Any such difference should give rise to United States
source foreign currency gain or loss.
Because the Notes are denominated in the Indonesian Rupiah, a
United States holder of the Notes will generally be subject to
special United States federal income tax rules governing foreign
currency transactions, as described in the Prospectus in the last
four paragraphs of "-Payments of Interest" under the "United States
Holders" section. Pursuant to such rules, a United States holder
should determine amounts received with respect to a Note (including
principal and interest) by reference to the U.S. dollar value of
the Indonesian Rupiah amount of the payment, calculated at the
currency exchange rate in effect on the date of payment. The U.S.
dollar amount that is actually received by the United States holder
may differ from the amount determined under the preceding sentence,
since the U.S. dollar amount of the payment will be determined by
reference to the IDR Rate as of the relevant Rate Fixing Date.
Accordingly, a United States holder of the Notes may recognize
United States source foreign currency gain or loss in an amount
equal to such difference (in addition to any foreign currency gain
or loss otherwise recognized upon the receipt of an interest
payment or a sale or retirement of the Notes). The U.S. Internal
Revenue Service could take the position, however, that the amounts
received by a United States holder in respect of a Note should be
equal to the U.S. dollar amount that is actually received by the
United States holder. Prospective United States holders of the
Notes should consult their tax advisors regarding these rules.
Additionally, 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. Because the Notes are denominated in the
Indonesian Rupiah, a United States holder would compute such
holder's amortizable bond premium in units of Indonesian Rupiah,
and the United States holder's amortizable bond premium would
reduce such holder's interest income in units of Indonesian Rupiah.
Gain or loss recognized that is attributable to changes in exchange
rates between the time the United States holder's amortized bond
premium offsets interest income and the time of the holder's
acquisition of the Notes is generally taxable as ordinary income or
loss. 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 U.S. Internal
Revenue Service.
Upon a sale, redemption or retirement of a Note, a United States
holder will generally recognize gain or loss equal to the
difference, if any, between (i) the U.S. dollar amount realized on
the sale, redemption or retirement (other than amounts attributable
to accrued but unpaid interest, which would be treated as such) and
(ii) the United States holder's adjusted tax basis in the Note. A
United States holder's adjusted tax basis in a Note generally will
equal the U.S. dollar cost of the Note to the United States holder.
Such gain or loss will be capital gain or loss except to the extent
attributable to changes in exchange rates. Capital gain of
individual taxpayers from the sale, redemption or retirement of a
Note held for more than one year may be eligible for reduced rates
of taxation. The deductibility of a capital loss is subject to
significant limitations.
Treasury Regulations Requiring Disclosure of Reportable
Transactions. Treasury regulations require United States taxpayers
to report certain transactions that give rise to a loss in excess
of certain thresholds (a "Reportable Transaction"). Under these
regulations, because the Notes are denominated in a foreign
currency, a United States holder (or a non-United States holder
that holds the Notes in connection with a U.S. trade or business)
that recognizes a loss with respect to the Notes that is
characterized as an ordinary loss due to changes in currency
exchange rates (under any of the rules discussed above or under the
"Tax Matters" section of the Prospectus) would be required to
report the loss on IRS Form 8886 (Reportable Transaction Statement)
if the loss exceeds the thresholds set forth in the regulations.
For individuals and trusts, this loss threshold is $50,000 in any
single taxable year. For other types of taxpayers and other types
of losses, the thresholds are higher. Holders should consult with
their tax advisors regarding any tax filing and reporting
obligations that may apply in connection with acquiring, owning and
disposing of notes.
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 generally includes 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.
3. Additional Investment Considerations:
The Notes offered by this Pricing Supplement are complex
financial instruments and may not be suitable for certain
investors. Investors intending to purchase the Notes should consult
with their tax and financial advisors to ensure that the intended
purchase meets the investment objective before making such
purchase.
There are various risks associated with the Notes including, but
not limited to, exchange rate risk, price risk and liquidity risk.
Investors should consult with their own financial, legal and
accounting advisors about the risks associated with an investment
in these Notes, the appropriate tools to analyze that investment,
and the suitability of the investment in each investor's particular
circumstances. Holders of the Notes should also consult with their
professional tax advisors regarding tax laws applicable to
them.
Payment of each Interest Amount and the Redemption Amount will
be based on the IDR Rate, which is a measure of the rate of
exchange between the Indonesian Rupiah and the USD. Currency
exchange rates are volatile and will affect the holder's return. In
addition, the government of Indonesia can from time to time
intervene in the foreign exchange market. These interventions or
other governmental actions could adversely affect the value of the
Notes, as well as the yield (in USD terms) on the Notes and the
amount payable at maturity or upon acceleration. Even in the
absence of governmental action directly affecting currency exchange
rates, political or economic developments in Indonesia or elsewhere
could lead to significant and sudden changes in the exchange rate
between the Indonesian Rupiah and the USD.
The Indonesian Rupiah is an emerging market currency. Emerging
market currencies may be subject to particularly substantial
volatility, as well as to government actions including currency
controls, devaluations and other matters which could materially and
adversely affect the value of the Notes.
The methodologies for determining the IDR Rate may result in a
Redemption Amount (or Early Redemption Amount, as the case may be)
of the Notes, or an Interest Amount on the Notes, being
significantly less than anticipated or less than what an
alternative methodology for determining the IDR-USD exchange rate
would yield.
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
IODUBSRRWOABUUR
(END) Dow Jones Newswires
July 30, 2018 02:00 ET (06:00 GMT)
Inter 2042 (LSE:42BI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Inter 2042 (LSE:42BI)
Historical Stock Chart
From Jul 2023 to Jul 2024
