TIDM42BI
RNS Number : 1686Q
Inter-American Development Bank
17 June 2020
PRICING SUPPLEMENT
Inter-American Development Bank
Global Debt Program
Series No.: 755
U.S.$4,000,000,000 0.625 percent Notes due July 15, 2025
Issue Price: 99.97 percent
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
BMO Capital Markets
Goldman Sachs International
Morgan Stanley
Nomura
Barclays
BofA Securities
Citigroup
Daiwa Capital Markets America Inc.
Deutsche Bank
HSBC
J.P. Morgan
Scotiabank
TD Securities
Wells Fargo Securities
The date of this Pricing Supplement is June 12, 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superseded by the Uniform Fiscal Agency Agreement, dated as of July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restated, superseded or otherwise modified from time to time,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.: 755
2. Aggregate Principal Amount: U.S.$4,000,000,000
3. Issue Price: U.S.$3,998,800,000 which is
99.97 percent of the Aggregate
Principal Amount
4. Issue Date: June 16, 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 July 15, 2025
Interest Rate):
11. Interest Basis
(Condition 5): Fixed Interest Rate (Condition
5(I))
12. Interest Commencement Date
(Condition 5(III)): Issue Date (June 16, 2020)
13. Fixed Interest Rate (Condition
5(I)):
(a) Interest Rate: 0.625 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 January 15, 2021.
There will be a long first interest
Period from and including the
Issue Date to but excluding
January 15, 2021.
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
15. Relevant Business Days: New York
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.
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: Yes
4. If Syndicated:
(a) Liability: Several and not joint
(b) Joint Lead Managers: BMO Capital Markets Corp.
Goldman Sachs International
Morgan Stanley & Co. International
plc
Nomura International plc
5. Commissions and Concessions: 0.125 percent of the Aggregate
Principal Amount
6. Estimated Total Expenses: None. The Joint Lead Managers
have agreed to pay for certain
expenses related to the issuance
of the Notes.
7. Codes:
(a) Common Code: 219024568
(b) ISIN: US4581X0DN51
(c) CUSIP: 4581X0DN5
8. Identity of Managers: BMO Capital Markets Corp.
Goldman Sachs International
Morgan Stanley & Co. International
plc
Nomura International plc
Barclays Bank PLC
Citigroup Global Markets Limited
Daiwa Capital Markets America
Inc.
Deutsche Bank AG, London Branch
HSBC Bank plc
J.P. Morgan Securities plc
Merrill Lynch International
Scotiabank Europe plc
The Toronto-Dominion Bank
Wells Fargo Securities, LLC
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, non-U.S. tax laws
and possible changes in tax laws.
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 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 Notes. A United States
holder's adjusted tax basis in the Notes generally will equal the
cost of the Notes to the United States holder. Capital gain of
individual taxpayers from the sale or retirement of 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 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 holder s that are individual s , estate s or trust s 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
IODUBSRRRWUNARR
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