TIDM42BI
RNS Number : 5679R
Inter-American Development Bank
08 November 2021
PRICING SUPPLEMENT
Inter-American Development Bank
Global Debt Program
Series No: 457
Tranche No.: 9
U.S.$100,000,000 3.00 percent Notes due October 4, 2023 (the
"Notes") as from November 5, 2021 to be consolidated and form a
single series with the Bank's U.S.$1,000,000,000 3.00 percent Notes
due October 4, 2023 issued on October 4, 2013 (the "Series 457
Tranche 1 Notes"), the Bank's U.S.$200,000,000 3.00 percent Notes
due October 4, 2023 issued on March 22, 2018 (the "Series 457
Tranche 2 Notes"), the Bank's U.S.$100,000,000 3.00 percent Notes
due October 4, 2023 issued on November 13, 2018 (the "Series 457
Tranche 3 Notes"), the Bank's U.S.$100,000,000 3.00 percent Notes
due October 4, 2023 issued on November 21, 2018 (the "Series 457
Tranche 4 Notes"), the Bank's U.S.$100,000,000 3.00 percent Notes
due October 4, 2023 issued on March 21, 2019 (the "Series 457
Tranche 5 Notes"), the Bank's U.S.$100,000,000 3.00 percent Notes
due October 4, 2023 issued on May 20, 2019 (the "Series 457 Tranche
6 Notes"), the Bank's U.S.$200,000,000 3.00 percent Notes due
October 4, 2023 issued on January 23, 2020 (the "Series 457 Tranche
7 Notes") and the Bank's U.S.$400,000,000 3.00 percent Notes due
October 4, 2023 issued on March 31, 2020 (the "Series 457 Tranche 8
Notes")
Issue Price: 104.654 percent plus 31 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
BMO Capital Markets Corp.
The date of this Pricing Supplement is November 3, 2021
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.
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. (a ) Series No.: 457
(b) Tranche No.: 9
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 457
Tranche 1 Notes, the Series 457
Tranche 2 Notes, the Series 457
Tranche 3 Notes, the Series 457
Tranche 4 Notes, the Series 457
Tranche 5 Notes, the Series 457
Tranche 6 Notes, the Series 457
Tranche 7 Notes and the Series
457 Tranche 8 Notes.
3. Issue Price: U.S.$104,912,333.33, which amount
represents the sum of (a) 104.654
percent of the Aggregate Principal
Amount plus (b) the amount of U.S.$258,333.33
representing 31 days' accrued interest
4. Issue Date: November 5, 2021
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)): Book-entry only, 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 October 4, 2023
Interest Rate):
11. Interest Basis
(Condition 5): Fixed Interest Rate (Condition
5(I))
12. Interest Commencement Date
(Condition 5(III)): October 4, 2021
13. Fixed Interest Rate (Condition
5(I)):
(a) Interest Rate: 3.00 percent per annum
(b) Fixed Rate Interest
Payment Date(s): Semi-annually in arrear on April
4 and October 4 in each year, commencing
on April 4, 2022.
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:
(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 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
the
Global Agent and Clearance Federal Reserve Bank of New York;
and Euroclear Bank SA/NV; Clearstream
Settlement Procedures: Banking S.A.
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: 097685240
(b) ISIN: US4581X0CC06
(c) CUSIP: 4581X0CC0
7. Identity of Dealer: BMO Capital Markets Corp.
General Information
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.
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 31 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.
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 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. 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 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. 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 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
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