Source - RNS
RNS Number : 8480K
Inter-American Development Bank
26 September 2016
 

 

 

PRICING SUPPLEMENT

Inter-American Development Bank

Global Debt Program

Series No.: 580

U.S.$50,000,000 1.08 percent Notes due September 23, 2019

 

Issue Price: 100.00 percent

 

 

 

 

No application has been made to list the Notes on any stock exchange.

 

 

 

 

 

J.P. Morgan

 

 

 

The date of this Pricing Supplement is September 20, 2016.

 

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 Directive 2003/71/EC of the European Parliament and of the Council).  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.

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.

Series No.:

580

 

2.

Aggregate Principal Amount:

U.S.$50,000,000

 

3.

Issue Price:

U.S.$50,000,000 which is 100.00 percent of the Aggregate Principal Amount

 

4.

Issue Date:

September 23, 2016

 

5.

Form of Notes
(Condition 1(a)):


Registered only, as further provided in paragraph 8 of "Other Relevant Terms" below

 

6.

Authorized Denomination(s)
(Condition 1(b)):

 

U.S.$200,000 and integral multiples of U.S.$1,000 in excess thereof

 

7.

Specified Currency
(Condition 1(d)):


United States Dollars (U.S.$) being the lawful currency of the United States of America

 

8.

Specified Principal Payment Currency
(Conditions 1(d) and 7(h)):



U.S.$

 

9.

Specified Interest Payment Currency
(Conditions 1(d) and 7(h)):


U.S.$

 

10.

Maturity Date
(Condition 6(a); Fixed Interest Rate):


September 23, 2019

 

11.

Interest Basis
(Condition 5):


Fixed Interest Rate (Condition 5(I))

 

12.

Interest Commencement Date
(Condition 5(III)):


Issue Date (September 23, 2016)

 

13.

Fixed Interest Rate (Condition 5(I)):

(a)  Interest Rate:



1.08 percent per annum

 

 

(b)  Fixed Rate Interest Payment Date(s):

Semi-annually in arrear on March 23 and September 23 in each year, commencing on March 23, 2017 and ending on the Maturity Date.

Each Interest Payment Date is subject to the Following Business Day Convention with no adjustment to the amount of interest otherwise calculated.

 

 

(c)  Fixed Rate Day Count Fraction(s):

 

30/360

 

 

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 6(f)):


No

 

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 represents and agrees 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 agrees 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.

Other Relevant Terms

 

1.

Listing:

None

2.

Details of Clearance System Approved by the Bank and the
Global Agent and Clearance and
Settlement Procedures:

 

 

 

Depository Trust Company (DTC)

 

3.

Syndicated:

No

4.

Commissions and Concessions:

No commissions or concessions are payable in respect of the Notes. An affiliate of the Dealer has arranged a swap with the Bank in connection with this transaction and will receive amounts thereunder that may comprise compensation.

5.

Estimated Total Expenses:

None.  The Dealer has agreed to pay for all material expenses related to the issuance of the Notes.

 

6.

Codes:

 

 

(a)  ISIN:

US45818WBN56

 

(b)  CUSIP:

45818WBN5

7.

Identity of Dealer:

J.P. Morgan Securities plc

8.

Provisions for Registered Notes:

 

 

(a)  Individual Definitive Registered Notes Available on Issue Date:

 

 

No

 

(b)  DTC Global Note(s):

Yes, issued in accordance with the Global Agency Agreement, dated January 8, 2001, as amended, among the Bank, Citibank, N.A. as Global Agent, and the other parties thereto.

 

 

(c)  Other Registered Global Notes:

 

No

       

 

General Information

Additional Information Regarding the Notes

1.         The language set out under the heading "Use of Proceeds" in the Prospectus shall be deleted in its entirety and replaced by the following:

 

"An amount equal to the net proceeds of the issue of the Notes (which proceeds may be converted into other currencies) shall be recorded by IADB in a separate sub-account supporting Eligible Projects. These proceeds will be invested in accordance with the IADB's conservative liquidity investment guidelines until used to support the IADB's financing of Eligible Projects. So long as the Notes are outstanding and the account has a positive balance, the Bank shall direct an amount equal to such net proceeds to its lending projects within the fields of Education, Youth, and Employment, subject to and in accordance with the IADB's policies.

 

Although Eligible Projects funded by the net proceeds shall be reported on the IADB website on an annual basis, funds shall be reduced from the account on a semi-annual basis by amounts matching the disbursements made during such semi-annual period in respect of Eligible Projects.

 

"Eligible Projects" means all projects funded, in whole or in part, by IADB that promote early childhood care and education, through formal primary and secondary education, or facilitate labor market placement by improving the transition from school to work through vocational training. Eligible Projects may include projects in Latin America and the Caribbean that target (a) early childhood development, effective teaching and learning among children and youth ("Education Projects"), (b) early childhood care and youth-at-risk programs ("Youth Projects") or (c) labor intermediation systems, job opportunities and workforce skills ("Employment Projects").

 

            Examples of Education Projects include, without limitation:

·    Early childhood development programs

·    Primary education programs, which includes teacher training, bilingual education, literacy, math and science education and school infrastructure

·    Secondary education programs, which includes programs directed to improving retention and graduation, developing teaching and learning methods and providing assistance to disadvantaged children

·    Compensatory education programs

·    Teacher education and effectiveness programs

·    E-education programs

 

            Examples of Youth Projects include, without limitation:

·    Support for parents and caregivers to improve quality of child care

·    Youth-At-Risk programs which support interventions, policy design, and/or impact evaluations to benefit at-risk youth

 

            Examples of Employment Projects include, without limitation:

·    School-to-Work transition programs

·    Vocational and technical education programs

·    Human resources and workforce development programs

·    Labor intermediation systems

·    Vocational and Workforce training programs, directed to improving social and labor acclimation for youth, unemployed adults and active workers

 

The above examples of Education Projects, Youth Projects and Employment Projects are for illustrative purposes only and no assurance can be provided that disbursements for projects with these specific characteristics will be made by IADB during the term of the Notes."

 

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.

 

            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, depending on the circumstances, be "passive" or "general" 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.

 

 

 

INTER-AMERICAN DEVELOPMENT BANK

By:                                                                                           

Name:    Gustavo Alberto De Rosa

             Title:       Chief Financial Officer and General Manager,        Finance Department

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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