Bond Interamerican Development Bank 0.885% ( AU3CB0266401 ) in AUD

Issuer Interamerican Development Bank
Market price 100 %  ⇌ 
Country  United States
ISIN code  AU3CB0266401 ( in AUD )
Interest rate 0.885% per year ( payment 1 time a year)
Maturity 13/09/2021 - Bond has expired



Prospectus brochure of the bond Inter-American Development Bank (IDB) AU3CB0266401 in AUD 0.885%, expired


Minimal amount 1 000 AUD
Total amount 50 000 000 AUD
Detailed description The Inter-American Development Bank (IDB) is a regional development bank that provides loans, grants, and technical assistance to its borrowing member countries in Latin America and the Caribbean to promote economic development and social progress.

The Bond issued by Interamerican Development Bank ( United States ) , in AUD, with the ISIN code AU3CB0266401, pays a coupon of 0.885% per year.
The coupons are paid 1 time per year and the Bond maturity is 13/09/2021








SINGAPORE SECURITIES AND FUTURES ACT PRODUCT CLASSIFICATION - 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).

Series No.:
024
Tranche No.: A
Date:
11 September 2019

INTER-AMERICAN DEVELOPMENT BANK

Australian Dollar Medium Term Note Program

issue of

A$50,000,000 0.885% Medium Term Notes due 13 September 2021
("MTNs")


The Program has been rated AAA by Standard & Poor's
and Aaa by Moody's Investors Service, Inc.

Each offer to purchase or invitation to buy MTNs must (a) constitute an offer or invitation which does not require
disclosure to investors under Parts 6D.2 or 7.9 of the Corporations Act 2001 of Australia such that the amount
payable by each person who subscribes for MTNs must be at least A$500,000 (disregarding moneys lent by the
offeror or its associates), and (b) must comply with Banking exemption No. 1 dated 21 March 2018 promulgated
by the Australian Prudential Regulation Authority as if it applied to the Issuer, mutatis mutandis. The sale of the
MTNs is also subject to other selling restrictions as set out in the Information Memorandum dated 18 December
2009 and this Pricing Supplement.
The Issuer is not a bank which is authorised under the Banking Act 1959 of Australia. The
MTNs are not the obligations of any government and, in particular, are not guaranteed by
the Commonwealth of Australia.
This Pricing Supplement (as referred to in the Information Memorandum dated 18 December 2009
("Information Memorandum") and Deed Poll dated 16 July 1999, as amended and restated on 18
December 2009, together the "Deed Poll" in relation to the above Program) relates to the Tranche
of MTNs referred to above.
43626783_4


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The Terms and Conditions of the MTNs are as set out on pages 12 to 28 of the Information
Memorandum, as supplemented and amended by this Pricing Supplement. The MTNs are
constituted by the Deed Poll. Terms used but not defined in this Pricing Supplement have the
meanings given to them in the Information Memorandum.
The most recent Information Statement incorporated by reference in the Information Memorandum
is dated 1 March 2019.
The particulars to be specified in relation to such Tranche are as follows:
1
Description of MTNs:
Fixed Rate MTNs
2
Issuer:
Inter-American Development Bank
3
Registrar:
Reserve Bank of Australia
4
Type of Issue:
Underwritten
5
Dealer:
BNP Paribas
6
Currency:

-
of Denomination
Australian dollars
-
of Payment
Australian dollars
7
Aggregate principal amount of Tranche:
A$50,000,000
8
If interchangeable with existing Series:
Not applicable
9
Issue Date:
13 September 2019
10
Issue Price:
100% of the Aggregate principal amount of
the Tranche
11
Denomination:
A$1,000, subject to the requirement that the
amount payable by each person who
subscribes for MTNs when issued in or
transferred within Australia must be at least
A$500,000.
In addition, the issue and the transfer of
MTNs in Australia must comply with
Banking exemption No. 1 of 2018 dated
21 March
2018
promulgated
by
the
Australian Prudential Regulation Authority as
if it applied to the Issuer mutatis mutandis
(and which requires all offers of any parcels
of MTNs to be for an aggregate principal
amount of at least A$500,000).



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12
Definition of Business Day:
A day (other than a Saturday or Sunday) on
which commercial banks are open for general
banking business in Sydney.
13
Interest:

(a)
If Interest bearing:
(i)
Interest Rate:
0.885% per annum paid annually in arrear.
(ii)
Interest Amount:
A$8.85 per MTN on each Interest Payment
Date.
(iii)
Interest Payment Dates:
13 September of each year, commencing on
13 September 2020 and ending on the
Maturity Date
(iv)
Interest Period End Dates:
Interest Payment Dates
(v)
Applicable Business Day
Modified Following
Convention:
-
for Interest Payment
As above
Dates:
-
for Maturity Date:
Unadjusted
-
for Interest Period
Unadjusted
End Dates:
-
any other dates:
As above
(vi)
Day Count Fraction:
RBA Bond Basis, which means one divided
by the number of Interest Payment Dates in a
year (or in respect of the calculation of
interest for any period of time (where the
Calculation Period does not constitute an
Interest Period, the actual number of days in
the Calculation Period divided by 365 (or, if
any portion of the Calculation Period falls in
a leap year, the sum of:
(i)
the actual number of days in that
portion of the Calculation Period
falling in a leap year divided by 366;
and
(ii)
the actual number of days in that
portion of the Calculation Period
falling in a non-leap year divided by
365)).



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(vii)
Interest Commencement
13 September 2019
Date:
(viii)
Minimum Interest Rate:
Not applicable
(ix)
Maximum Interest Rate:
Not applicable

(x)
Issue Yield:
0.885% per annum (semi-annual)

(b)
If non-interest bearing:

-
Amortisation Yield:
Not applicable
14
Maturity Date:
13 September 2021
15
Maturity Redemption Amount:
Outstanding Principal Amount
16
Early Termination Amount:
Outstanding Principal Amount
17
Any Clearing System other than
Interests in MTNs traded in the Austraclear
Austraclear:
System may also be traded through Euroclear
and Clearstream, Luxembourg.
See the section of the Information
Memorandum entitled "Clearing System" on
page 10.
18
Additional Tax Consequences and
See the section of the Information
Disclosure:
Memorandum entitled "Taxation" on pages
33 to 37, amended as set out in Schedule A to
the Pricing Supplement.
19
Other Conditions:
Not applicable
20
Selling Restrictions:
The Selling Restrictions are amended as set
out in Schedule B to this Pricing Supplement
and, in addition, the Notes will not be offered,
sold or distributed, directly or indirectly, in
the United States of America, its territories or
possessions or to, or for the account or benefit
of, U.S. Persons (as such term is defined in
Rule 902(k) of Regulation S under the United
States Securities Act of 1933, as amended).
21
Address for Notices (if necessary):
Not applicable
22
Listing:
Not applicable
23
ISIN:
AU3CB0266401
24
Common Code:
205020128




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CONFIRMED

Date: 11 September 2019



- 6 -
SCHEDULE A

The section entitled "United States Taxation" set out on pages 33 and 37 of the Information
Memorandum is deleted and replaced with the following:

United States Taxation

United States Internal Revenue Service Circular 230 Notice: To ensure compliance with Internal
Revenue Service Circular 230, you are hereby notified that (a) any discussion of United States federal
tax issues contained or referred to in this Information Memorandum or any document referred to herein
is not intended or written to be used, and cannot be used, by you for the purpose of avoiding penalties
that may be imposed on you under the United States Internal Revenue Code, (b) such discussion is
written for use in connection with the promotion or marketing of the transactions or matters addressed
herein, and (c) you should seek advice based on your particular circumstances from an independent tax
advisor.

This section describes certain United States federal income tax consequences of owning the MTNs and
certain provisions of the Bank Agreement concerning the taxation of the MTNs. It applies only to MTN
Holders acquiring MTNs in the offering who hold such MTNs as capital assets for tax purposes. This
section does not apply to an MTN Holder that is a member of a class of holders subject to special rules,
such as:

·
a dealer in securities or currencies;
·
a trader in securities that elects to use a mark-to-market method of accounting for its securities
holdings;
·
a bank;
·
a life insurance company;
·
a tax-exempt organization;
·
a person that owns MTNs that are a hedge or that are hedged against interest rate or currency
risks;
·
a person that owns MTNs as part of a straddle or conversion transaction for tax purposes;
·
a person that purchases or sells MTNs as part of a wash sale for tax purposes; or
·
a United States MTN Holder, as defined below, whose functional currency for tax purposes is
not the United States Dollar.
This section is based on the Internal Revenue Code of 1986, as amended ("Code"), its legislative
history, existing and proposed regulations under the Code, published rulings and court decisions, all as
currently in effect. These laws are subject to change, possibly on a retroactive basis.

This section applies only to MTNs issued on a fully paid basis, that bear interest at a fixed rate, that are
not issued with original issue discount, and that do not provide for amortization payments prior to
maturity. Accordingly, this section does not apply to MTNs that are non-interest bearing, that provide
for floating interest payments, or that are issued on a partly paid basis. If any MTNs are subject to
special rules (for example, the rules regarding original issue discount or contingent payment debt
instruments), such rules will be discussed in the applicable Pricing Supplement.

Notwithstanding any of the tax information provided in this Information Memorandum, which
does not purport to be complete, all persons considering the purchase of the MTNs should
consult their own tax advisor concerning the consequences of owning these MTNs in their
particular circumstances under the Code and the laws of any other taxing jurisdiction.
1.
Tax Status ­ General
The MTNs and the interest thereon generally will be subject to taxation.



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The Bank Agreement provides that the MTNs and the interest thereon are not subject to any
tax by a member of the Issuer (a) which tax discriminates against the MTNs solely because
they are issued by the Issuer, or (b) if the sole jurisdictional basis for the tax is the place or
currency in which the MTNs are issued, made payable or paid, or the location of any office or
place of business maintained by the Issuer. Also, under the Bank Agreement, the Issuer is not
under any obligation to withhold or pay any tax imposed by any member on the MTNs.
Accordingly, payments on the MTNs will be made to the Registrar without deduction in respect
of any such tax.
The imposition of United States federal income tax in the manner described herein is not
inconsistent with the provisions of the Bank Agreement.
2.
Tax Status ­ United States
The United States Treasury Department has issued to the Issuer rulings dated May 4, 1988 and
May 5, 1989 ("Rulings") regarding certain United States tax consequences under the Code of
the receipt of interest on securities issued by the Issuer. The Rulings provide that interest paid
by the Issuer on such securities, including payments attributable to accrued original issue
discount, constitutes income from sources outside the United States. The Rulings further
determine that neither the Issuer nor an agent appointed by it as principal for the purpose of
paying interest on securities issued by the Issuer is required to withhold tax on interest paid by
the Issuer.
Under the Rulings, interest paid by the Issuer ordinarily would not be subject to United States
federal income tax, including withholding tax, if paid to a non-resident alien individual (or foreign
partnership, estate or trust) or to a foreign corporation, whether or not such person is engaged
in trade or business in the United States. However, absent any special statutory or treaty
exception, such interest would be subject to United States federal income tax in the following
cases: (i) such interest is derived by such person in the active conduct of a banking, financing
or similar business within the United States and such interest is attributable to an office or other
fixed place of business of such person within the United States, or (ii) such person is a foreign
corporation taxable as an insurance company carrying on a United States insurance business
and such interest is attributable to its United States business.
3.
United States MTN Holders
This section describes the tax consequences to a United States MTN Holder. An MTN Holder
is a United States MTN Holder if it is a beneficial owner of an MTN and is:
·
a citizen or resident of the United States;
·
a domestic corporation;
·
an estate whose income is subject to United States federal income tax regardless of its
source; or
·
a trust if a United States court can exercise primary supervision over the trust's
administration and one or more United States persons are authorized to control all
substantial decisions of the trust.
Except for portions that explicitly address foreign persons, this section does not apply to MTN
Holders who are not United States MTN Holders.
4.
Payments of Interest
MTN Holders will be taxed on any interest on their MTNs as ordinary income at the time such
holder receives the interest or when it accrues, depending on such holder's method of
accounting for tax purposes.



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Cash Basis Taxpayers. If an MTN Holder is a taxpayer that uses the cash receipts and
disbursements method of accounting for tax purposes, such MTN Holder must recognize
income equal to the United States Dollar value of each Australian dollar interest payment
received, based on the exchange rate in effect on the date of receipt, regardless of whether
such MTN Holder actually converts such payment into United States Dollars.
Accrual Basis Taxpayers. If an MTN Holder is a taxpayer that uses an accrual method of
accounting for tax purposes, such MTN Holder may determine the amount of income that such
holder recognizes with respect to each Australian dollar interest payment using one of two
methods. Under the first method, such MTN Holder will determine the amount of income
accrued based on the average exchange rate in effect during the interest accrual period or, with
respect to an accrual period that spans two taxable years, that part of the period within the
taxable year.
If such MTN Holder elects the second method, such MTN Holder would determine the amount
of income accrued on the basis of the exchange rate in effect on the last day of the accrual
period, or, in the case of an accrual period that spans two taxable years, the exchange rate in
effect on the last day of the part of the period within the taxable year. Additionally, under this
second method, if such MTN Holder receives a payment of interest within five business days of
the last day of such MTN Holder's accrual period or taxable year, such MTN Holder may instead
translate the interest accrued into United States Dollars at the exchange rate in effect on the
day that such MTN Holder actually receives the interest payment. If such MTN Holder elects
the second method it will apply to all debt instruments that such MTN Holder holds at the
beginning of the first taxable year to which the election applies and to all debt instruments that
such MTN Holder subsequently acquires. Such MTN Holders may not revoke this election
without the consent of the Internal Revenue Service.
When such MTN Holders actually receive an interest payment, including a payment attributable
to accrued but unpaid interest upon the sale or retirement of their MTNs, for which such MTN
Holder accrued an amount of income, such MTN Holder will recognize ordinary income or loss
measured by the difference, if any, between the exchange rate that such MTN Holder used to
accrue interest income and the exchange rate in effect on the date of receipt, regardless of
whether such holder actually converts the payment into United States Dollars.
For foreign tax credit limitation purposes, interest paid by the Issuer on the MTNs will be income
from sources outside the United States and wil , depending on the MTN Holder's circumstances,
be either "passive income" or "general income" for purposes of computing the foreign tax credit
allowable to an MTN Holder.
5.
Purchase, Sale and Retirement of the MTNs
An MTN Holder's tax basis in an MTN wil general y be the United States Dol ar cost, as defined
below, of the MTN. If an MTN Holder purchases an MTN with Australian dollars, the United
States Dollar cost of the MTN will generally be the United States Dollar value of the purchase
price on the date of purchase. However, if such MTN Holder is a cash basis taxpayer, or an
accrual basis taxpayer if such MTN Holder so elects, and the MTN is traded on an established
securities market, as defined in the applicable United States Treasury regulations, the United
States Dollar cost of the MTN will be the United States Dollar value of the purchase price on
the settlement date of the purchase.
An MTN Holder will generally recognize gain or loss on the sale or retirement of the MTN equal
to the difference between the amount such MTN Holder realizes on the sale or retirement and
such MTN Holder's tax basis in the MTN. If the MTN is sold or retired for an amount in Australian
dollars, the amount realized will be the United States Dollar value of such amount on:
·
the date of disposition, if the MTNs are not traded on an established securities market,
as defined in the applicable United States Treasury regulations; or
·
the settlement date for the sale, if the MTNs are traded on an established securities
market, as defined in the applicable United States Treasury regulations, and the MTN
Holder is a cash basis taxpayer, or an accrual basis taxpayer that so elects.



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An MTN Holder will recognize capital gain or loss when such MTN Holder sells or retires the
MTNs, except to the extent:
·
attributable to accrued but unpaid interest; or
·
attributable to changes in exchange rates as described below.
Capital gain of a non-corporate MTN Holder is generally taxed at preferential rates where the
property is held more than one year.
An MTN Holder must treat any portion of the gain or loss that such MTN Holder recognizes on
the sale or retirement of an MTN as ordinary income or loss to the extent attributable to changes
in exchange rates. However, such MTN Holder takes exchange gain or loss into account only
to the extent of the total gain or loss realized on the transaction.
6.
Exchange of Amounts in Other Than United States Dollars
If an MTN Holder receives Australian dollars as interest on an MTN or on the sale or retirement
of an MTN, such holder's tax basis in Australian dol ars wil equal its United States Dollar value
when the interest is received or at the time of the sale or retirement. If such MTN Holder
purchases Australian dollars, such MTN Holder generally will have a tax basis equal to the
United States Dollar value of the Australian dollars on the date of the purchase. If such MTN
Holder sells or disposes of Australian dollars, including if such MTN Holder uses it to purchase
MTNs or exchange it for United States Dollars, any gain or loss recognized generally will be
ordinary income or loss.
7.
Medicare Tax
An MTN 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 on the lesser of (1) the holder's "net
investment income" for the relevant taxable year and (2) the excess of the holder's modified
adjusted gross income for the taxable year over a certain threshold (which in the case of
individuals is between $125,000 and $250,000, depending on the individual's circumstances).
An MTN Holder's net investment income generally includes its interest income and its net gains
from the disposition of MTNs, 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). An MTN Holder that is an individual, estate or
trust is urged to consult a tax advisors regarding the applicability of the Medicare tax to the
holder's income and gains in respect of the holder's investment in the MTNs.
8.
Treasury Regulations Requiring Disclosure of Reportable Transactions
United States 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, an MTN Holder that recognizes a loss with respect to
the MTNs that is characterized as an ordinary loss due to changes in currency exchange rates
(under any of the rules discussed above) would be required to report the loss on Internal
Revenue Service Form 8886 (Reportable Transaction Statement) if the loss exceeds the
thresholds set forth in the regulations. For individuals and trusts, this loss threshold is
US$50,000 in any single taxable year. For other types of taxpayers and other types of losses,
the thresholds are higher. An MTN Holder should consult with the holder's tax advisor regarding
any tax filing and reporting obligations that may apply in connection with acquiring, owning and
disposing of MTNs.
9.
Foreign Account Tax Compliance Withholding
Certain non-U.S. financial institutions must comply with information reporting requirements or
certification requirements in respect of their direct and indirect United States shareholders
and/or United States accountholders to avoid becoming subject to withholding on certain
payments. Those non-U.S. financial institutions may accordingly be required to report
information to the Internal Revenue Service regarding the holders of MTNs. MTN Holders are



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urged to consult their own tax advisors and any banks or brokers through which they will hold
MTNs as to the consequences (if any) of these rules to them.
10.
Information with Respect to Foreign Financial Assets
Owners of "specified foreign financial assets" with an aggregate value in excess of US$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. MTN Holders are urged to consult their tax advisors regarding the
application of this reporting requirement to their ownership of the MTNs.
11.
Backup Withholding and Information Reporting
The Issuer is not subject to the information reporting and backup withholding requirements that
are imposed by United States law with respect to certain payments of interest or principal on
debt obligations. While United States Treasury regulations confirm that the information
reporting and backup withholding requirements do not apply to the Registrar with respect to the
MTNs, the Registrar may file information returns with the Internal Revenue Service with respect
to payments on MTNs made within the United States to certain United States persons as if such
returns were required of it. Under the book-entry system as operated by the Federal Reserve
Bank of New York, no such information returns will be filed by the Registrar with respect to
book-entry MTNs.
Brokers, trustees, custodians and other intermediaries within the United States are subject to
the reporting and backup withholding requirements with respect to certain payments on the
MTNs received by them for the account of certain United States persons, and foreign persons
receiving payments on the MTNs within the United States may be required by such
intermediaries to establish their status in order to avoid information reporting and backup
withholding of tax by such intermediaries in respect of such payments. Payment of the proceeds
from the sale of an MTN effected at a foreign office of a broker generally will not be subject to
information reporting or backup withholding. However, a sale effected at a foreign office of a
broker could be subject to information reporting in the same manner as a sale within the United
States (and in certain cases may be subject to backup withholding as well) if (i) the broker has
certain connections to the United States, (ii) the proceeds or confirmation are sent to the United
States or (iii) the sale has certain other specified connections with the United States.
An MTN Holder generally may obtain a refund of any amounts withheld under the backup
withholding rules that exceed the holder's income tax liability by filing a refund claim with the
IRS.