TIDM42BI
RNS Number : 9726D
Inter-American Development Bank
24 February 2020
PRICING SUPPLEMENT
Inter-American Development Bank
Global Debt Program
Series No: 706
Tranche No.: 4
GBP 500,000,000 1.250 percent Notes due December 15, 2025 (the
"Notes") as from
February 24, 2020 to be consolidated and form a single series
with the Bank's
GBP 500,000,000 1.250 percent Notes due December 15, 2025,
issued on May 14, 2019
(the "Series 706 Tranche 1 Notes"), the Bank's GBP 100,000,000
1.250 percent Notes due December 15, 2025, issued on August 2, 2019
(the "Series 706 Tranche 2 Notes") and the Bank's GBP 100,000,000
1.250 percent Notes due December 15, 2025, issued on November 6,
2019 (the "Series 706 Tranche 3 Notes")
Issue Price: 102.816 percent plus 71 days' accrued interest
Application has been made for the Notes to be admitted to
the
Official List of the Financial Conduct Authority and
to trading on the London Stock Exchange plc's
Regulated Market
NatWest Markets
RBC Capital Markets
The date of this Pricing Supplement is February 19, 2020.
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
Regulation (EU) 2017/1129). 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. (a) Series No.: 706
(b) Tranche No.: 4
2. Aggregate Principal Amount: GBP 500,000,000
As from the Issue Date, the
Notes will be consolidated and
form a single series with the
Series 706 Tranche 1 Notes,
the Series 706 Tranche 2 Notes
and the Series 706 Tranche 3
Notes.
3. Issue Price: GBP 515,292,431.69 which amount
represents the sum of (a) 102.816
percent of the Aggregate Principal
Amount plus (b) the amount of
GBP 1,212,431.69 representing
71 days' accrued interest, inclusive.
4. Issue Date: February 24, 2020
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) GBP 100,000 and integral multiples
of GBP 1,000 in excess thereof
(Condition 1(b)):
7. Specified Currency
(Condition 1(d)): Pound sterling (GBP) being
the lawful currency of the United
Kingdom of Great Britain and
Northern Ireland
8. Specified Principal Payment
Currency
(Conditions 1(d) and 7(h)): GBP
9. Specified Interest Payment
Currency GBP
(Conditions 1(d) and 7(h)):
10. Maturity Date
(Condition 6(a); Fixed December 15, 2025
Interest Rate):
11. Interest Basis
(Condition 5): Fixed Interest Rate (Condition
5(I))
12. Interest Commencement Date
(Condition 5(III)): December 15, 2019
13. Fixed Interest Rate (Condition
5(I)):
(a) Interest Rate: 1.250 percent per annum
(b) Fixed Rate Interest Annually in arrear on December
Payment Date(s): 15 in each year, commencing
on December 15, 2020, up to
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.
(c) Fixed Rate Day Count Actual/Actual (ICMA)
Fraction(s):
14. Relevant Financial Center: London and TARGET
15. Relevant Business Days: London and TARGET
16. Issuer's Optional Redemption
(Condition 6(e)): No
17. Redemption at the Option
of the Noteholders (Condition No
6(f)):
18. Governing Law: New York
19. 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: Each of the Managers 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, each of the Managers
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.
20. Amendment to Condition 7(a)(i): Condition 7(a)(i) is 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")."
21. Amendment to Condition 7(h): The following shall apply 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 Globa l Agent
un d er the
Bank's Global Debt Program -
namely ,
Citibank, N.A., London Branch
, or its duly
authorized successor.
Other Relevant Terms
1. Listing: Application has been made for
the Notes to be admitted to
the Official List of the Financial
Conduct Authority and to trading
on the London Stock Exchange
plc's Regulated Market with
effect from the Issue Date.
2. Details of Clearance System
Approved by the Bank and Euroclear Bank SA/NV and Clearstream
the Banking S.A.
Global Agent and Clearance
and
Settlement Procedures:
3. Syndicated: Yes
4. If Syndicated:
(a) Liability: Several and not joint
(b) Managers: NatWest Markets Plc
RBC Europe Limited
5. Commissions and Concessions: 0.041% of the Aggregate Principal
Amount
6. Estimated Total Expenses: None. The Managers have agreed
to pay for certain expenses
related to the issuance of the
Notes.
7. Codes:
(a) Common Code: 199112406
(b) ISIN: XS1991124063
8. Identity of Managers: NatWest Markets Plc
RBC Europe Limited
9. Provisions 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, as amended,
among the Bank, Citibank, N.A.,
as Global Agent, and the other
parties thereto.
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
manufacturers' 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 manufacturers' 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 manufacturers' 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 United States 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
United States federal, state, and local tax laws and non-United
States tax laws and possible changes in tax laws.
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 71
days of accrued interest that a United States holder paid as part
of the Issue Price of the Notes ("Pre-Issuance Accrued Interest")
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 value of the amount received in
respect of such accrued interest differs from the U.S. dollar value
of the 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 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 Pre-Issuance 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
Notes' yield to maturity. Because the Notes are denominated in GBP,
a United States holder would compute such holder's amortizable bond
premium in units of GBP, and the United States holder's amortizable
bond premium would reduce such holder's interest income in units of
GBP. 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 Internal Revenue Service.
Because the Notes are denominated in GBP, 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", in "-Purchase, Sale and Retirement of the
Notes" and in "-Exchange of Amounts in Other Than U.S. Dollars"
under the "United States Holders" section.
Upon a sale or retirement of the Notes, 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 or
retirement (other than amounts attributable to accrued but unpaid
interest, which would be treated as the receipt of interest, or in
the case of a disposition prior to the first interest payment, as
the receipt of Pre-Issuance Accrued Interest) and (ii) the United
States holder's adjusted tax basis in the Notes. A United States
holder's adjusted tax basis in the Notes generally will equal the
U.S. dollar cost of the Notes to the United States holder, reduced
by any bond premium that the United States holder previously
amortized with respect to the Notes and reduced by any Pre-Issuance
Accrued Interest that was previously received by 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 or retirement of the Notes
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.
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."
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 U.S.$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, foreign currency gain and its capital gains from the
disposition of Notes, unless such interest income or 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
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
IODUSVKRRVUUUAR
(END) Dow Jones Newswires
February 25, 2020 02:00 ET (07:00 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
