TIDM42BI
RNS Number : 4518J
Inter-American Development Bank
09 April 2020
PRICING SUPPLEMENT
Inter-American Development Bank
Global Debt Program
Series No.: 497
Tranche No.: 10
U.S.$100,000,000 2.125 percent Notes due January 15, 2025 (the
"Notes") as from April 9, 2020 to be consolidated and form a single
series with the Bank's U.S.$2,000,000,000 2.125 percent Notes due
January 15, 2025, issued January 15, 2015 (the "Series 497 Tranche
1 Notes"), the Bank's U.S.$250,000,000 2.125 percent Notes due
January 15, 2025, issued March 11, 2016 (the "Series 497 Tranche 2
Notes"), the Bank's U.S.$100,000,000 2.125 percent Notes due
January 15, 2025, issued March 30, 2016 (the "Series 497 Tranche 3
Notes"), the Bank's U.S.$150,000,000 2.125 percent Notes due
January 15, 2025, issued April 18, 2016 (the "Series 497 Tranche 4
Notes"), the Bank's U.S.$100,000,000 2.125 percent Notes due
January 15, 2025, issued April 22, 2016 (the "Series 497 Tranche 5
Notes"), the Bank's U.S.$200,000,000 2.125 percent Notes due
January 15, 2025, issued on July 29, 2019 (the "Series 497 Tranche
6 Notes"), the Bank's U.S.$100,000,000 2.125 percent Notes due
January 15, 2025, issued on October 8, 2019 (the "Series 497
Tranche 7 Notes"), the Bank's U.S.$200,000,000 2.125 percent Notes
due January 15, 2025, issued on November 14, 2019 (the "Series 497
Tranche 8 Notes") and the Bank's U.S.$50,000,000 2.125 percent
Notes due January 15, 2025, issued on April 6, 2020 (the "Series
497 Tranche 9 Notes")
Issue Price: 106.667 percent plus 84 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
BNP Paribas
The date of this Pricing Supplement is April 7, 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. The master fiscal agency
agreement, dated as of December 7, 1962, as amended and
supplemented from time to time, between the Bank and the Federal
Reserve Bank of New York, as fiscal and paying agent, has been
superseded by the Uniform Fiscal Agency Agreement, dated as of July
20, 2006 (the "New Fiscal Agency Agreement"), as may be amended,
restated, superseded or otherwise modified from time to time,
between the Bank and the Federal Reserve Bank of New York, as
fiscal and paying agent. All references to the "Fiscal Agency
Agreement" under the heading "Terms and Conditions of the Notes"
and elsewhere in the Prospectus shall be deemed references to the
New Fiscal Agency Agreement.
1. Series No.: 497
Tranche No.: 10
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 497 Tranche 1 Notes,
the Series 497 Tranche 2 Notes,
the Series 497 Tranche 3 Notes,
the Series 497 Tranche 4 Notes,
the Series 497 Tranche 5 Notes,
the Series 497 Tranche 6 Notes,
the Series 497 Tranche 7 Notes,
the Series 497 Tranche 8 Notes
and the Series 497 Tranche 9
Notes.
3. Issue Price: U.S.$107,162,833.33, which amount
represents the sum of (a) 106.667
percent of the Aggregate Principal
Amount plus (b) the amount of
U.S.$495,833.33 representing
84 days' accrued interest, inclusive.
4. Issue Date: April 9, 2020
5. Form of Notes
(Condition 1(a)): Book-entry only (not exchangeable
for Definitive Fed Registered
Notes, Conditions 1(a) and 2(b)
notwithstanding)
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 U.S.$
(Conditions 1(d) and 7(h)):
10. Maturity Date
(Condition 6(a); Fixed January 15, 2025
Interest Rate):
11. Interest Basis
(Condition 5): Fixed Interest Rate (Condition
5(I))
12. Interest Commencement Date
(Condition 5(III)): January 15, 2020
13. Fixed Interest Rate (Condition
5(I)):
(a) Interest Rate: 2.125 percent per annum
(b) Fixed Rate Interest Semi-annually in arrear on January
Payment Date(s): 15 and July 15 in each year,
commencing on July 15, 2020.
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
Fraction(s): 30/360
14. Relevant Financial Center: New York and London
15. Relevant Business Days: New York and London
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: Under the provisions of Section
(a) United States: 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 Financial
Conduct Authority and to trading
on the London Stock Exchange
plc's Regulated Market
2. Details of Clearance System
Approved by the Bank and Federal Reserve Bank of New
the York; Euroclear Bank SA/NV;
Global Agent and Clearance Clearstream Banking S.A.
and
Settlement Procedures:
3. Syndicated: No
4. Commissions and Concessions: 0.007% of the Aggregate Principal
Amount
5. Estimated Total Expenses: None. The Dealer has agreed
to pay for certain expenses
related to the issuance of the
Notes.
6. Codes:
(a) Common Code: 116673061
(b) ISIN: US4581X0CM87
(c) CUSIP: 4581X0CM8
7. Identity of Dealer: BNP Paribas
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 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, non-United States
tax laws and possible changes in tax laws.
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 84 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 not
be includible in income.
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
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.
Upon a sale or retirement of the Notes, a United States holder
will generally recognize capital gain or loss equal to the
difference, if any, between (i) the amount realized on the sale or
retirement (other than any amounts attributable to accrued but
unpaid interest, which will be treated as interest payments except
to the extent that such amounts are a return 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 cost of the Note 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. 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."
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.
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
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