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Updated On: Sunday, 25 August 2019

IDB Issues New Education, Youth, and Employment (EYE) Uridashi Bonds for Naito Securities

Content by: Inter-American Development Bank

The Inter-American Development Bank (“IDB” or “IADB”), rated Aaa/AAA, has priced two Uridashi zero coupon notes for Naito Securities under its Education, Youth and Employment (EYE) Bond Program.

The notes are denominated in Turkish Liras (2-year tenor) and Indonesian Rupiah (3-year tenor) and sold directly to retail investors in Japan.

Naito Securities Co., Ltd. is the Uridashi house of the bonds arranged by HSBC Bank plc, a wholly owned subsidiary of HSBC Holdings plc.

EYE Bonds are issued based on the Education, Youth, and Employment (EYE) Bond program provides funding for IDB’s eligible EYE project loans. The EYE Bond program projects, like all IDB projects, are designed to promote sustainable growth, poverty reduction and social equity. However, EYE projects specifically focus on education, youth and employment.

IDB has a “life cycle” approach to building human capital from early childhood care and education, through formal primary and secondary education, as well as programs that facilitate labor market placement by improving the transition from school to work through vocational training. In this way, the IDB assists Latin American and the Caribbean countries to increase productivity and improve social inclusion of young people throughout key intervention stages.

Bond Summary Terms

Issuer: Inter-American Development Bank

Issuer rating: Aaa(Moody’s)/AAA(S&P)

Face Amount: TRY 110m/ IDR 15,500m

Net Proceeds: TRY 84.59m/ IDR 13,376.5m (approximately $15.8 million equivalent)

Settlement date: 8 August 2019

Maturity date: 9 August 2021 (TRY) / 9 August 2022 (IDR)

Issue price: 76.90% (TRY)/ 86.30% (IDR)

Denominations: TRY 10,000 / IDR 50,000,000

ISIN: XS2023696185 / XS2023698470

Listing: None

Clearing system: Euroclear

Solo arranger: HSBC Bank plc

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