IDB Launches USD $500 Million Education, Youth and Employment Bond

Thursday, September 18, 2014

LONDON, September 17, 2014 /3BL Media/ — Citi priced a $500 million four-year Education, Youth and Employment (EYE) bond on behalf of The Inter-American Development Bank (IDB or IADB) on Tuesday – a first-of-its-kind investment vehicle, created with the support of Citi Microfinance. Proceeds from the note sale will be directed to programs that build human capital through early childhood care and education, formal primary and secondary education, as well as labor market placement and vocational training.

At a time when young people across Latin America face greater difficulty in securing full-time formal employment, this bond reflects the IDB’s “life cycle” approach to empowering Latin American and Caribbean countries to increase productivity and improve the social inclusion of young people throughout key intervention stages, as well as the bank’s commitment to the United Nations Millennium Development Goals.

It also reflects Citi Microfinance’s expanding inclusive finance role, building market solutions that result in greater access for low-income communities and sustainable returns for clients. Daiwa was a joint-bookrunner. It was priced with a spread of 54.7 basis points over the 1.00% UST due September 15, 2017. The pricing translates to a yield of 1.59%.

Source: 3BL Media (link opens in a new window)