The transaction experienced strong demand with participation from 45 investors worldwide and orders totaling more than $1.46 billion, the largest order book for an IDB Invest bond to date. The high level of demand reflects investor interest in IDB Invest’s sustainable development mission, its strong credit profile and its Sustainable Debt Framework.
Central banks and official institutions took the largest share of allocations at 74%, followed by fund managers (12%), commercial banks/private banks (9%), other accounts (3%) and insurance/pension accounts (2%). The investor base is very well diversified geographically, with Europe, Middle East and Africa (EMEA) accounting for 56% of demand, the Americas 24% and Asia 20%.
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable enterprises and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $13.1 billion in assets under management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that respond to its clients’ needs in a variety of sectors.
Corporate and investment banking
An important source of financing for environmental projects, “green” debt is born of a strong political or strategic will and is the object of special care before the key stage of its encounter with the market.
A green bond, whether issued by a State, an international organization or a company, has “two additional characteristics”: it can only finance green investments and is evaluated ex-post.
Currently, green debt represents $660 billion, or less than 1% of the global debt market, says Stéphane Marciel, head of sustainable bonds at Société Générale CIB.
In the case of states, France’s €7 billion issuance in January 2017 serves as a benchmark because of its amount, its technical characteristics and its commitment to produce an impact report.
“Our objective was to demonstrate that the capital markets could help States to finance the energy transition. The operation was well received by the markets and other countries followed our lead,” says Anthony Requin, CEO of Agence France Trésor (AFT).
What is CIB Operational
The CIB offers an Open Shelf system, whose collection is open access, the documents are located on the shelves so that users can consult them directly. While in the sectional libraries the funds are in closed collections, it is necessary to borrow them from the staff. This service can be used by the polytechnic community and external users. The reference room service includes the use of spaces for people with special needs.
Professors, researchers, students and employees have access to internal and home loans. Students, upon presentation of their library card, may borrow 3 books at home, while professors and employees may borrow 5 books for the entire semester.
The return of bibliographic material will be made within the established period; failure to return on the indicated date will result in a fine of $0.40 cents per book per day, including Saturdays, Sundays and holidays. Students may renew the same document 3 consecutive times.
However, the total volume, i.e. the sum of debt business and lending activity, decreased by €33.9 billion. It did so from the historic figure of 195.8 billion reached in 2020, to the 161.9 billion it closed with in 2021.
The ranking is based on data from Refinitiv, formerly Thomson Reuters, as of December 31, 2021. Bonds include issues in all currencies above $50 million, those of bank subsidiaries, securitizations and those that have not come to market. The debookrunner category has been selected.
Bond issuance declined by 9%, falling from a record 138,238 million in 2020 to 125,601 million in 2021. The amount of loans declined over the same period by 37%, from 57,687 million to 36,325 million.
As for issues by financial institutions, 2021 was notable for the access to the market of medium-sized ones, such as Unicaja, Abanca, Kutxabank and Cajamar, to cover their capital and MREL (minimum required eligible liabilities) needs, with minimum cost levels, highlights Javier González, head of the debt market for financial institutions at BNP.