TIDM42BI
RNS Number : 3896S
Inter-American Development Bank
05 November 2019
PRICING SUPPLEMENT
Inter-American Development Bank
Global Debt Program
Series No.: 655
Tranche No: 9
GBP 170,000,000 1.250 percent Notes due December 15, 2023 (the
"Notes") as from November 5, 2019 to be consolidated and form a
single series with the Bank's GBP 300,000,000 1.250 percent Notes
due December 15, 2023, issued on June 19, 2018 (the "Series 655
Tranche 1 Notes"), the Bank's GBP 125,000,000 1.250 percent Notes
due December 15, 2023, issued on July 12, 2018 (the "Series 655
Tranche 2 Notes"), the Bank's GBP 100,000,000 1.250 percent Notes
due December 15, 2023, issued on July 25, 2018 (the "Series 655
Tranche 3 Notes"), the Bank's GBP 100,000,000 1.250 percent Notes
due December 15, 2023, issued on August 9, 2018 (the "Series 655
Tranche 4 Notes"), the Bank's GBP 150,000,000 1.250 percent Notes
due December 15, 2023, issued on October 4, 2018 (the "Series 655
Tranche 5 Notes"), the Bank's GBP 225,000,000 1.250 percent Notes
due December 15, 2023, issued on March 18, 2019 (the "Series 655
Tranche 6 Notes"), the Bank's GBP 500,000,000 1.250 percent Notes
due December 15, 2023, issued on April 17, 2019 (the "Series 655
Tranche 7 Notes") and the Bank's GBP 150,000,000 1.250 percent
Notes due December 15, 2023, issued on October 7, 2019 (the "Series
655 Tranche 8 Notes")
Issue Price: 101.764 percent plus 325 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
Citigroup
The date of this Pricing Supplement is October 31, 2019.
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 the
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.
MiFID II product governance / Retail investors, professional
investors and ECPs target market - See "General
Information-Additional Information Regarding the Notes-Matters
relating to MiFID II" below.
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.
1. (a) Series No.: 655
(b) Tranche No.: 9
2. Aggregate Principal Amount: GBP 170,000,000
As from the Issue Date, the
Notes will be consolidated and
form a single series with the
Series 655 Tranche 1 Notes,
the Series 655 Tranche 2 Notes,
the Series 655 Tranche 3 Notes,
the Series 655 Tranche 4 Notes,
the Series 655 Tranche 5 Notes,
the Series 655 Tranche 6 Notes,
the Series 655 Tranche 7 Notes
and the Series 655 Tranche 8
Notes.
3. Issue Price: GBP 174,890,923.29, which amount
represents the sum of (a) 101.764
percent of the Aggregate Principal
Amount plus (b) the amount of
GBP 1,892,123.29 representing
325 days' accrued interest,
inclusive.
4. Issue Date: November 5, 2019
5. Form of Notes
(Condition 1(a)): Registered only, as further
provided in paragraph 8(c) of
"Other Relevant Terms" below.
6. Authorized Denomination(s)
(Condition 1(b)): GBP 1,000 and integral multiples
thereof
7. Specified Currency
(Condition 1(d)): Pound sterling (GBP) being
the lawful currency of the United
Kingdom of Great Britain and
Northern Ireland
8. Specified Principal Payment
Currency
(Conditions 1(d) and 7(h)): GBP
9. Specified Interest Payment
Currency GBP
(Conditions 1(d) and 7(h)):
10. Maturity Date
(Condition 6(a); Fixed December 15, 2023
Interest Rate):
11. Interest Basis
(Condition 5): Fixed Interest Rate (Condition
5(I))
12. Interest Commencement Date
(Condition 5(III)): December 15, 2018
13. Fixed Interest Rate (Condition
5(I)):
(a) Interest Rate: 1.250 percent per annum
(b) Fixed Rate Interest Annually in arrear on December
Payment Date(s): 15 in each year, commencing
on December 15, 2019, up to
and including the Maturity Date.
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 Actual/Actual (ICMA)
Fraction(s):
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 has represented and
agreed 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 has
agreed 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.
20. Amendment to Condition 7(a)(i): Condition 7(a)(i) is hereby
amended by deleting the first
sentence thereof and replacing
it with the following: "Payments
of principal and interest in
respect of Registered Notes
shall be made to the person
shown on the Register at the
close of business on the business
day before the due date for
payment thereof (the "Record
Date")."
21. Amendment to Condition 7(h): The following shall apply to
Notes any payments in respect
of which are payable in a Specified
Currency other than United States
Dollars:
Condition 7(h) is hereby amended
by deleting the words "the noon
buying rate in U.S. dollars
in the City of New York for
cable transfers for such Specified
Currency as published by the
Federal Reserve Bank of New
York on the second Business
Day prior to such payment or,
if such rate is not available
on such second Business Day,
on the basis of the rate most
recently available prior to
such second Business Day" and
replacing them with the words
"a U.S. dollar/Specified Currency
exchange rate determined by
the Calculation Agent as of
the second Business Day prior
to such payment, or, if the
Calculation Agent determines
that no such exchange rate is
available as of such second
Business Day, on the basis of
the exchange rate most recently
available prior to such second
Business Day. In making such
determinations, the Calculation
Agent shall act in good faith
and in a commercially reasonable
manner having taken into account
all available information that
it shall deem relevant".
If applicable and so appointed,
and unless
otherwise defined herein, the
"Calculation
Agent" referred to in amended
Condition
7(h) shall be the Global Agent
under the
Bank's Global Debt Program -
namely,
Citibank, N.A., London Branch,
or its duly
authorized successor.
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 with
effect from the Issue Date.
2. Details of Clearance System
Approved by the Bank and Euroclear Bank SA/NV and Clearstream
the Banking S.A.
Global Agent and Clearance
and
Settlement Procedures:
3. Syndicated: No
4. Commissions and Concessions: 0.041% 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: 183596462
(b) ISIN: XS1835964625
7. Identity of Dealer: Citigroup Global Markets Limited
8. Provisions for Registered
Notes:
(a) Individual Definitive
Registered Notes Available No
on Issue Date:
(b) DTC Global Note(s): No
(c) Other Registered Global Yes, issued in accordance with
Notes: the Global Agency Agreement,
dated January 8, 2001, as amended,
among the Bank, Citibank, N.A.,
as Global Agent, and the other
parties thereto.
General Information
Additional Information Regarding the Notes
1. Matters relating to MiFID II
The Bank does not fall under the scope of application of the
MiFID II regime. Consequently, the Bank does not qualify as an
"investment firm", "manufacturer" or "distributor" for the purposes
of MiFID II.
MiFID II product governance / Retail investors, professional
investors and ECPs target market - Solely for the purposes of the
manufacturer's product approval process, the target market
assessment in respect of the Notes has led to the conclusion that:
(i) the target market for the Notes is eligible counterparties,
professional clients and retail clients, each as defined in MiFID
II; and (ii) all channels for distribution of the Notes are
appropriate. Any person subsequently offering, selling or
recommending the Notes (a "distributor") should take into
consideration the manufacturer's target market assessment; however,
a distributor subject to MiFID II is responsible for undertaking
its own target market assessment in respect of the Notes (by either
adopting or refining the manufacturer's target market assessment)
and determining appropriate distribution channels.
For the purposes of this provision, the expression MiFID II
means Directive 2014/65/EU, as amended.
2. 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.
Because the Notes are denominated and payable in British pound
sterling, a United States holder of the Notes will generally be
subject to special United States federal income tax rules governing
foreign currency transactions, as described in the Prospectus in
the last four paragraphs of "-Payments of Interest", in "-Purchase,
Sale and Retirement of the Notes" and in "-Exchange of Amounts in
Other Than U.S. Dollars" under the "United States Holders"
section.
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 325
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 only be taxable
to the extent that the U.S. dollar value of the Pre-Issuance
Accrued Interest on the date of receipt differs from the U.S.
dollar value of such amount on the Issue Date. Any such difference
should give rise to United State source foreign currency gain or
loss.
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 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
Note's yield to maturity. Because the Notes are denominated in
British pound sterling, a United States holder would compute such
holder's amortizable bond premium in units of British pound
sterling, and the United States holder's amortizable bond premium
would reduce such holder's interest income in units of British
pound sterling. Gain or loss recognized that is attributable to
changes in exchange rates between the time the United States
holder's amortized bond premium offsets interest income and the
time of the holder's acquisition of the Notes is generally taxable
as ordinary income or loss. 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 ("IRS").
Upon the sale or retirement of the Notes, a United States holder
will generally recognize gain or loss equal to the difference, if
any, between the U.S. dollar value of the amount realized by such
holder, excluding any amounts attributable to accrued but unpaid
interest (which will be treated as interest payments or, in the
case of a disposition prior to the first interest payment, as
Pre-Issuance Accrued Interest), and such holder's tax basis in the
Notes. A United States holder's adjusted tax basis in the Notes
generally will equal the U.S. dollar cost of the Notes to the
United State holder, reduced by any bond premium that the United
States holder previously amortized with respect to the Notes, and
if such disposition occurs after the first interest payment, by an
amount equal to the U.S. dollar value of the Pre-Issuance Accrued
Interest on the Issue Date. Such gain or loss will be capital gain
or loss except to the extent attributable to changes in exchange
rates. Capital gain of individual taxpayers from the sale
retirement of the Notes will generally be treated as long-term
capital gain or loss to the extent the United States holder has
held the Notes for more than one year. Long-term capital gain of
individual taxpayers may be eligible for reduced rates of taxation.
The deductibility of 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.
Treasury Regulations Requiring Disclosure of Reportable
Transactions. Treasury regulations require United States taxpayers
to report certain transactions that give rise to a loss in excess
of certain thresholds (a "Reportable Transaction"). Under these
regulations, because the Notes are denominated in a foreign
currency, a United States holder (or a non-United States holder
that holds the Notes in connection with a U.S. trade or business)
that recognizes a loss with respect to the Notes that is
characterized as an ordinary loss due to changes in currency
exchange rates (under any of the rules discussed under the "Tax
Matters" section of the Prospectus) would be required to report the
loss on IRS Form 8886 (Reportable Transaction Statement) if the
loss exceeds the thresholds set forth in the regulations. For
individuals and trusts, this loss threshold is U.S.$50,000 in any
single taxable year. For other types of taxpayers and other types
of losses, the thresholds are higher. Holders should consult with
their tax advisors regarding any tax filing and reporting
obligations that may apply in connection with acquiring, owning and
disposing of Notes.
INTER-AMERICAN DEVELOPMENT BANK
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IODUVRKRKAAARAA
(END) Dow Jones Newswires
November 06, 2019 02:00 ET (07:00 GMT)
Inter 2042 (LSE:42BI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Inter 2042 (LSE:42BI)
Historical Stock Chart
From Jul 2023 to Jul 2024