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Deutsche Bank arranges first IDR Sustainable Development Notes
Investors with ESG mandates are rallying to support development banks with clear strategic priorities linked to Sustainable Development Goals
10 Feb 2020 | The Asset

DEUTSCHE Bank AG announced February 10 that it has successfully launched the first Sustainable Development Note in Indonesian Rupiah (IDR) for issuer Inter-American Development Bank (IDB or IADB), rated Aaa/AAA (Moody’s/S&P).

IDB raised the equivalent of US$100 million by pricing the Sustainable Development Notes denominated in IDR, with a three-year maturity and an annual coupon of 5.50%.

Proceeds of the Sustainable Development Notes will support IDB’s strategic priorities to reduce poverty and inequality in Latin America and the Caribbean by promoting economic and social development in a sustainable, climate friendly way. Each strategic priority of IDB aligns to at least one of the United Nations Sustainable Development Goals (SDGs).

This is the first time Deutsche Bank has priced Sustainable Development Notes in an Asian local currency.

Deutsche Bank’s head of Asia Local Markets Trading and Solutions, Ashok Das says: “The offer was very well received by real money investors in the US, Europe and Asia-Pacific where there is continued demand for investments in the environmental, social and governance (ESG) theme.”

“Investors with ESG mandates are rallying to support development banks with clear strategic priorities linked to Sustainable Development Goals,” Das adds. “With demand strong and attractive pricing terms, it’s a good time for development banks to finance.”

The Notes support the United Nation’s Sustainable Development Goals linked to IDB’s mission which focuses on three challenges involving social inclusion and equality (SDGs 1,2,3,4,6, 10), productivity and innovation (SDGs 4, 7, 8, 9) and economic integration (SDGs 8,9,17).

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