Source - RNS
RNS Number : 4259L
Inter-American Development Bank
30 September 2016
 

 

 

 

PRICING SUPPLEMENT

Inter-American Development Bank

Global Debt Program

Series No: 576

 

 

INR 1,080,000,000 5.30 percent Notes due September 27, 2019 (the "Notes")

 

payable in Japanese Yen

 

 

Issue Price: 100.00 percent

 

 

 

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

 

 

J.P. Morgan Securities plc

 

 

The date of this Pricing Supplement is September 26, 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.:

576

2.

Aggregate Principal Amount:

INR 1,080,000,000

3.

Issue Price:

INR 1,080,000,000, which is 100.00 percent of the Aggregate Principal Amount

The Issue Price will be payable in Japanese Yen ("JPY"), being the lawful currency of Japan, in the following amounts:

(a)  in the case of INR 630,000,000 principal amount launched on August 23, 2016, JPY 940,590,000 (based on the agreed rate of JPY 1.493 per one INR);

(b)  in the case of INR 70,000,000 principal amount launched on September 15, 2016, JPY 107,030,000 (based on the agreed rate of JPY 1.529 per one INR);

(c)  in the case of INR 130,000,000 principal amount launched on September 19, 2016, JPY 198,380,000 (based on the agreed rate of JPY 1.526 per one INR); and

(d)  in the case of INR 250,000,000 principal amount launched on September 21, 2016, JPY 381,250,000 (based on the agreed rate of JPY 1.525 per one INR).

4.

Issue Date:

September 29, 2016

5.

Form of Notes
(Condition 1(a)):

 

Bearer only.

The Notes will initially be represented by a temporary global note in bearer form (the "Temporary Bearer Global Note").  Interests in the Temporary Bearer Global Note will, not earlier than the Exchange Date, be exchangeable for interests in a permanent global note in bearer form (the "Permanent Bearer Global Note").  Interests in the Permanent Bearer Global Note will be exchangeable for definitive Notes in bearer form ("Definitive Bearer Notes"), with all Coupons, if any, in respect of interest attached, in the following circumstances: (i) if the Permanent Bearer Global Note is held on behalf of a clearing system and such clearing system is closed for business for a continuous period of fourteen (14) days (other than by reason of holidays, statutory or otherwise) or announces its intention to permanently cease business or does in fact do so, by any such holder giving written notice to the Global Agent; and (ii) at the option of any such holder upon not less than sixty (60) days' written notice to the Bank and the Global Agent from Euroclear and Clearstream, Luxembourg on behalf of such holder; provided, that no such exchanges will be made by the Global Agent, and no Noteholder may require such an exchange, during a period of fifteen (15) days ending on the due date for any payment of principal on the Notes.

6.

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


INR 100,000

7.

Specified Currency
(Condition 1(d)):


Indian Rupee ("INR"), being the lawful currency of India; provided that all payments in respect of the Notes will be made in JPY.

8.

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


JPY

9.

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


JPY

10.

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


September 27, 2019

The Maturity Date is subject to adjustment in accordance with the Modified Following Business Day Convention with no adjustment to the amount of interest otherwise calculated.

11.

Interest Basis
(Condition 5):


Fixed Interest Rate (Condition 5(I))

12.

Interest Commencement Date
(Condition 5(III)):


September 30, 2016

13.

Fixed Interest Rate (Condition 5(I)):

 

 

 

(a)  Interest Rate:

5.30 percent per annum

 

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

 

Semi-annually in arrears on March 27 and September 27 in each year, commencing on March 27, 2017 and ending on the Maturity Date.

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

An amount in JPY is payable per Authorized Denomination on each Fixed Rate Interest Payment Date, calculated as follows on the INR Valuation Date for such Fixed Rate Interest Payment Date:

For the first Fixed Rate Interest Payment Date:

INR 2,605.83 multiplied by INR Rate

(rounding, if necessary, the entire resulting figure to the nearest whole JPY, with
JPY 0.5 being rounded upwards)

 

For each subsequent Fixed Rate Interest Payment Date:

INR 2,650.00 multiplied by INR Rate

(rounding, if necessary, the entire resulting figure to the nearest whole JPY, with
JPY 0.5 being rounded upwards)

Where:

Provided that no Price Source Disruption Event is occurring on an INR Valuation Date, "INR Rate" means, in respect of such INR Valuation Date, the product of 100 and the reciprocal number of the INR RBIC Rate in respect of such INR Valuation Date. The resulting figure (expressed as the number of JPY per one INR) shall be rounded to four decimal places with 0.00005 being rounded upwards.

In the event that a Price Source Disruption Event is occurring on an INR Valuation Date, then the INR Rate in respect of such INR Valuation Date shall be determined by the Calculation Agent by requesting mid market quotations of the INR/JPY spot exchange rate, expressed as the amount of JPY per one INR, at or about 1:30 p.m. India Standard time on the first (1st) Relevant Business Day following the relevant INR Valuation Date from the Reference Dealers.

If five or four quotations are provided as requested, the INR Rate will be the arithmetic mean (rounded to the nearest four decimal places with 0.00005 being rounded upwards) of the remaining three or two such quotations, as the case may be, for such rate provided by the Reference Dealers, after disregarding the highest such quotation and the lowest such quotation (provided that, if two or more such quotations are the highest such quotations, then only one of such highest quotations shall be disregarded, and if two or more such quotations are the lowest quotations, then only one of such lowest quotations will be disregarded).

If only three or two such quotations are provided as requested, the INR Rate shall be determined as described above except that the highest and lowest quotations will not be disregarded.

If none or only one of the Reference Dealers provides such quotation, the INR Rate will be determined by the Calculation Agent in its sole discretion, acting in good faith and in a commercially reasonable manner.

"INR RBIC Rate" means, in respect of an INR Valuation Date, the JPY/INR spot rate, expressed as the amount of INR per one hundred JPY, as published on Reuters Screen "RBIC" Page or any substitute or successor page for the purpose of displaying such rate, at approximately 1:30 p.m. (Indian Standard Time) on such INR Valuation Date, or as soon thereafter as practicable.

"INR Valuation Date" means the date that is five (5) Relevant Business Days prior to the relevant Fixed Rate Interest Payment Date or the Maturity Date, as applicable.

"Price Source Disruption Event" means that no JPY/INR spot rate appears on the Reuters Screen "RBIC" Page (or any substitute or successor page for the purpose of displaying such rate) on the relevant INR Valuation Date.

"Reference Dealers" means five banks active in the INR/JPY currency and foreign exchange market, as applicable, as selected by the Calculation Agent in its sole discretion, acting in good faith and in a commercially reasonable manner.

 

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

30/360

14.

Relevant Financial Centers:

Tokyo

15.

Relevant Business Days:

London, Mumbai, New York City and Tokyo

16.

Redemption Amount (Condition 6(a)):

An amount in JPY per Authorized Denomination, calculated as follows on the INR Valuation Date for the Maturity Date:

INR 100,000 multiplied by INR Rate

(rounding, if necessary, the entire resulting figure to the nearest whole JPY, with JPY 0.5 being rounded upwards)

17.

Issuer's Optional Redemption (Condition 6(e)):


No

18.

Redemption at the Option of the Noteholders (Condition 6(f)):

 


No

19.

Early Redemption Amount (including accrued interest, if applicable) (Condition 9):

 



In the event of any Notes becoming due and payable prior to the Maturity Date as provided in Condition 9, the Early Redemption Amount with respect to each Authorized Denomination will be a JPY amount equal to the Redemption Amount that is determined in accordance with "16. Redemption Amount (Condition 6(a))" plus accrued and unpaid interest, if any, as determined in accordance with "13. Fixed Interest Rate (Condition 5(I))"; provided that, for the purpose of determining such JPY amount, the INR Valuation Date shall mean the date that is five (5) Relevant Business Days prior to the date on which the Early Redemption Amount shall be due and payable as provided in Condition 9.

20.

Governing Law:

New York

21.

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.

Notes in bearer form are subject to U.S. tax law requirements and may not be offered, sold or delivered within the United States or its possessions or to U.S. persons, except in certain circumstances permitted by U.S. tax regulations.

 

 

(b)        United Kingdom:

The Dealer 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)        India:

The Dealer has acknowledged that, it will not offer or sell any Notes in India at any time.  The Notes have not been approved by the Securities and Exchange Board of India, Reserve Bank of India or any other regulatory authority of India, nor have the foregoing authorities approved this Pricing Supplement or confirmed the accuracy or determined the adequacy of the information contained in this Pricing Supplement. This Pricing Supplement has not been and will not be registered as a prospectus or a statement in lieu of prospectus with the Registrar of Companies in India.

 

 

 

(d)        Japan:

The Dealer represents that it is purchasing the Notes as principal and has agreed that in connection with the initial offering of Notes, it has not offered or sold and will not directly or indirectly offer or sell any Notes in Japan or to, or for the benefit of, any resident of Japan (including any Japanese corporation or any other entity organized under the laws of Japan), or to others for re-offering or resale, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan (except in compliance with the Financial Instruments and Exchange Law of Japan (Law no. 25 of 1948, as amended) and all other applicable laws and regulations of Japan), and furthermore undertakes that any securities dealer to whom it sells any Notes will agree that it is purchasing the Notes as principal and that it will not offer or sell any notes, directly or indirectly, in Japan or to or for the benefit of any resident of Japan (except as aforesaid).

 

 

(e)        General:

No action has been or will be taken by the Bank 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:

 


Euroclear Bank SA/NV and/or Clearstream Banking, Luxembourg

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)  Common Code:

148277079

 

(b)  ISIN:

XS1482770796

7.

Identity of Dealer:

J.P. Morgan Securities plc

 

8.

Identity of Calculation Agent:

JPMorgan Chase Bank, N.A.

All determinations of the Calculation Agent shall (in the absence of manifest error) be final and binding on all parties (including, but not limited to, the Bank and the Noteholders) and shall be made in its sole discretion in good faith and in commercially reasonable manner in accordance with the calculation agent agreement between the Bank and the Calculation Agent.

 

9.

Provisions for Bearer Notes:

 

 

(a)  Exchange Date:

Not earlier than November 8, 2016, which is the date that is 40 (forty) days after the Issue Date.

 

(b)  Permanent Global Note:

Yes

 

(c)  Definitive Bearer Notes:

No, except in the limited circumstances described under "Form of Notes" herein and in the Prospectus 

 

(d)  Individual Definitive Registered Notes:


No

 

(e)  Registered Global Notes:

No

10.

Additional Risk Factors:

As set forth in the Additional Investment Considerations

General Information

Additional Information regarding the Notes

1.         Additional Investment Considerations: 

 

            There are significant risks associated with the Notes, including but not limited to exchange rate risk, price risk and liquidity risk.  Investors should consult their own financial, legal, accounting and tax advisors about the risks associated with an investment in these Notes, the appropriate tools to analyze that investment, and the suitability of the investment in each investor's particular circumstances. 

           

            The methodologies for determining the Japanese Yen-Indian Rupee foreign exchange rate may result in a Redemption Amount of the Notes, or an interest payment on the Notes, being significantly less than anticipated.

 

            The Bank may hedge its obligations under the Notes by entering into a swap transaction with the Dealer or one of its affiliates as swap counterparty. Assuming no change in market conditions or any other relevant factors, the price, if any, at which the Dealer or another purchaser might be willing to purchase Notes in a secondary market transaction is expected to be lower, and could be substantially lower, than the original issue price of the Notes. This is due to a number of factors, including that (i) the potential profit to the secondary market purchaser of the Notes may be incorporated into any offered price and (ii) the cost of funding used to value the Notes in the secondary market is expected to be higher than our actual cost of funding incurred in connection with the issuance of the Notes. In addition, the original issue price of the Notes included, and secondary market prices are likely to exclude, the projected profit that our swap counterparty or its affiliates may realize in connection with this swap. Further, as a result of dealer discounts, mark-ups or other transaction costs, any of which may be significant, the original issue price may differ from values determined by pricing models used by our swap counterparty or other potential purchasers of the Notes in secondary market transactions.

 

           

 

The Notes offered by this Pricing Supplement are complex financial instruments and may not be suitable for certain investors. Investors intending to purchase the Notes
should consult with their tax and financial advisors to ensure that the intended purchase meets the investment objective before making such purchase.

 

 

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
 
 
IODURUARNWAKOUR

Related Charts