TIDM42BI

RNS Number : 2140Q

Inter-American Development Bank

16 February 2023

PRICING SUPPLEMENT

Inter-American Development Bank

Global Debt Program

Series No: 857

HKD 400,000,000 3.499 percent Notes due February 16, 2026 (the "Notes")

Issue Price: 100.000 percent

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

Morgan Stanley

The date of this Pricing Supplement is February 13, 2023

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 July 28, 2020 (the "Prospectus") (which for the avoidance of doubt does not constitute a prospectus for the purposes of Part VI of the United Kingdom ("UK") Financial Services and Markets Act 2000 or a base prospectus for the purposes of Regulation (EU) 2017/1129 (as amended, the "Prospectus Regulation") or the Prospectus Regulation as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("EUWA")). 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.

UK MiFIR product governance / Retail investors, professional investors and ECPs target market - See "General Information-Additional Information Regarding the Notes-Matters relating to UK MiFIR" 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. Together with the applicable Conditions (as defined above), which are expressly incorporated hereto, these are the only terms that form part of the form of Notes for such issue .

 
 1.    Series No.:                           857 
 2.    Aggregate Principal Amount:           HKD 400,000,000 
 3.    Issue Price:                          HKD 400,000,000.00, which is 100.000 
                                              percent of the Aggregate Principal 
                                              Amount 
 4.    Issue Date:                           February 16, 2023 
 5.    Form of Notes                          Bearer only. 
        (Condition 1(a)):                      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"), 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.    New Global Note:                      No 
 7.    Authorized Denomination(s) 
         (Condition 1(b)):                    HKD 1,000,000.00 
 8.    Specified Currency 
        (Condition 1(d)):                      Hong Kong Dollar ("HKD") 
 9.    Specified Principal Payment 
        Currency 
        (Conditions 1(d) and 7(h)):            HKD 
 10.   Specified Interest Payment 
        Currency                               HKD 
        (Conditions 1(d) and 7(h)): 
 11.   Maturity Date 
        (Condition 6(a); Fixed 
        Interest Rate and Zero Coupon):        February 16, 2026 
 
                                               The Maturity Date is subject to 
                                               adjustment in accordance with 
                                               the Business Day Convention with 
                                               no adjustment to the amount of 
                                               interest otherwise calculated. 
 12.   Interest Basis 
        (Condition 5):                         Fixed Interest Rate (Condition 
                                               5(I)) 
 13.   Interest Commencement Date 
        (Condition 5(III)):                    Issue Date (February 16, 2023) 
 14.   Fixed Interest Rate (Condition 
        5(I)): 
              (a) Interest Rate:             3.499 percent per annum 
              (b) Fixed Rate Interest         Annually in arrear on February 
               Payment Date(s):                16 in each year, commencing on 
                                               February 16, 2024 and ending on 
                                               the Maturity Date. 
                                               Each Fixed Rate Interest Payment 
                                               Date is subject to adjustment 
                                               in accordance with the Business 
                                               Day Convention. 
              (c) Business Day Convention:   Modified Following Business Day 
                                              Convention 
              (d) Fixed Rate Day Count        Actual/365 (Fixed) 
               Fraction(s): 
 15.   Relevant Financial Center:            Hong Kong, New York and London 
 16.   Relevant Business Days:               Hong Kong, New York and London 
 17.   Issuer's Optional Redemption 
        (Condition 6(e)):                      No 
 18.   Redemption at the Option 
        of the Noteholders (Condition          No 
        6(f)): 
 19.   Early Redemption Amount 
        (including accrued interest, 
        if applicable) (Condition              In the event the Notes become 
        9):                                    due and payable as provided in 
                                               Condition 9 (Default), the Early 
                                               Redemption Amount with respect 
                                               to each Authorized Denomination 
                                               will be HKD 1,000,000.00 plus 
                                               accrued and unpaid interest, if 
                                               any, as determined in accordance 
                                               with "14. Fixed Interest Rate 
                                               (Condition 5(I))". 
 20.   Governing Law:                        New York 
 Other Relevant Terms 
 1.    Listing:                              None 
 2.    Details of Clearance System 
        Approved by the Bank and 
        the 
        Global Agent and Clearance             Euroclear Bank SA/NV and/or Clearstream 
        and                                    Banking S.A. 
        Settlement Procedures: 
 3.    Syndicated:                           No 
 4.    Commissions and Concessions:          No commissions or concessions 
                                              are payable in respect of the 
                                              Notes. 
 5.    Estimated Total Expenses:             The Dealer has agreed to pay for 
                                              all material expenses related 
                                              to the issuance of the Notes. 
 6.    Codes: 
              (a) Common Code:               258516605 
              (b) ISIN:                      XS2585166056 
 7.    Identity of Dealer:                   Morgan Stanley & Co. International 
                                              plc 
 8.    Provisions for Bearer Notes: 
              (a) Exchange Date:             Not earlier than March 28, 2023, 
                                              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 
 9.    Intended to be held in a 
        manner which would allow               Not Applicable 
        Eurosystem eligibility: 
 10.   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 represents and agrees 
                                              that (a) it has only communicated 
                                              or caused to be communicated and 
                                              will only communicate or cause 
                                              to be communicated an invitation 
                                              or inducement to engage in investment 
                                              activity (within the meaning of 
                                              Section 21 of the Financial Services 
                                              and Markets Act 2000 (the "FSMA")) 
                                              received by it in connection with 
                                              the issue or sale of the Notes 
                                              in circumstances in which Section 
                                              21(1) of the FSMA does not apply 
                                              to the Bank, and (b) it has complied 
                                              and will comply with all applicable 
                                              provisions of the FSMA with respect 
                                              to anything done by it in relation 
                                              to such Notes in, from or otherwise 
                                              involving the UK. 
                                             (c) Hong Kong: 
                                              The Dealer has not offered or 
                                              sold and will not offer or sell 
                                              in Hong Kong, by means of any 
                                              document, any Notes other than 
                                              (i) to "professional investors" 
                                              as defined in the Securities and 
                                              Futures Ordinance (Cap. 571) of 
                                              Hong Kong and any rules made under 
                                              that Ordinance; or (ii) in other 
                                              circumstances which do not result 
                                              in the document being a "prospectus" 
                                              as defined in the Companies (Winding 
                                              Up and Miscellaneous Provisions) 
                                              Ordinance (Cap. 32) of Hong Kong 
                                              or which do not constitute an 
                                              offer to the public within the 
                                              meaning of that Ordinance; and 
 
 
                                              The Dealer has not issued or had 
                                              in its possession for the purposes 
                                              of issue, and will not issue or 
                                              have in its possession for the 
                                              purposes of issue, whether in 
                                              Hong Kong or elsewhere, any advertisement, 
                                              invitation or document relating 
                                              to the Notes, which is directed 
                                              at, or the contents of which are 
                                              likely to be accessed or read 
                                              by, the public of Hong Kong (except 
                                              if permitted to do so under the 
                                              securities laws of Hong Kong) 
                                              other than with respect to the 
                                              Notes which are or are intended 
                                              to be disposed of only to persons 
                                              outside Hong Kong or only to "professional 
                                              investors" as defined in the Securities 
                                              and Futures Ordinance (Cap. 571) 
                                              of Hong Kong and any rules made 
                                              under that Ordinance. 
                                             (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 
                                              N otes, directly or indirectly, 
                                              in Japan or to or for the benefit 
                                              of any resident of Japan (except 
                                              as aforesaid ). 
                                              (e) Singapore: 
                                              In the case of the Notes being 
                                              offered into Singapore in a primary 
                                              or subsequent distribution, and 
                                              solely for the purposes of its 
                                              obligations pursuant to Section 
                                              309B of the Securities and Futures 
                                              Act (Chapter 289) of Singapore 
                                              (the "SFA"), the Issuer has determined, 
                                              and hereby notifies all relevant 
                                              persons (as defined in Section 
                                              309A of the SFA) that the Notes 
                                              are "prescribed capital markets 
                                              products" (as defined in the Securities 
                                              and Futures (Capital Markets Products) 
                                              Regulations 2018 of Singapore) 
                                              and Excluded Investment Products 
                                              (as defined in MAS Notice SFA 
                                              04-N12: Notice on the Sale of 
                                              Investment Products and MAS Notice 
                                              FAA-N16: Notice on Recommendations 
                                              on Investment Products). 
                                             (f) 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. 
 

General Information

Recent Developments

On November 20, 2022, Ilan Goldfajn was elected president of the Bank during a Special Meeting of the Bank's Board of Governors. Mr. Goldfajn took office for a five-year term on December 19, 2022.

Additional Information Regarding the Notes

   1.         Matters relating to UK MiFIR 

The Bank does not fall under the scope of application of the UK MiFIR regime. Consequently, the Bank does not qualify as an "investment firm", "manufacturer" or "distributor" for the purposes of UK MiFIR.

UK MiFIR product governance / Retail investors, professional investors and ECPs target market - Solely for the purposes of the UK 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 retail clients, as defined in point (8) of Article 2 of Regulation (EU) No 2017/565 as it forms part of UK domestic law by virtue of the EUWA, eligible counterparties, as defined in COBS, and professional clients, as defined in UK MiFIR; 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 UK manufacturer's target market assessment; however, a distributor subject to the UK MiFIR Product Governance Rules is responsible for undertaking its own target market assessment in respect of the Notes (by either adopting or refining the UK manufacturer's target market assessment) and determining appropriate distribution channels.

For the purposes of this provision, (i) the expression "UK manufacturer" means the Dealer, (ii) the expression "COBS" means the FCA Handbook Conduct of Business Sourcebook, (iii) the expression "UK MiFIR" means Regulation (EU) No 600/2014 as it forms part of UK domestic law by virtue of the EUWA, and (iv) the expression "UK MiFIR Product Governance Rules" means the FCA Handbook Product Intervention and Product Governance Sourcebook.

   2.         United States Federal Income Tax Matters 

The Notes will not be treated as issued in registered form for United States federal income tax purposes; therefore, the "Tax Matters" section in the Prospectus does not apply to the Notes. A United States holder that acquires Notes could be subject to adverse tax consequences with respect to its ownership of the Notes and should accordingly consult its tax advisor prior to acquiring Notes.

INTER-AMERICAN DEVELOPMENT BANK

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February 16, 2023 13:23 ET (18:23 GMT)

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