IDB issues Poverty Reduction Bonds

TIMES INT'L

The Inter-American Development Bank (IDB) and Daiwa Securities Group announced an issuance of the Poverty Reduction Bonds (the “Bonds”) to support poverty alleviation and improve the living conditions of new generations in Latin America and the Caribbean. 

These bonds are IDB’s first impact investment bonds for 2011, and they will be offered in Japan, the bank said in a statement.  The IDB’s Poverty Reduction Bonds provide an opportunity to Japanese retail investors to contribute to poverty reduction in Latin America and the Caribbean. 

The IDB is supporting programmes to reduce poverty in Latin America and the Caribbean. The bank’s programmes seek to stop intergenerational poverty by providing economic incentives to lower-income families, and improving their children’s nutritional and health standards as well as educational attainment, among other things. About 40 per cent of the total lending of the IDB goes to poverty alleviation programmes. 

In July 2010, the IDB issued its first Poverty Reduction Bonds, raising 279 million reais. Like the first transaction, Daiwa Securities Capital Markets Co Ltd, the wholesale securities firm under the Daiwa Securities Group, is managing the current sale of the bonds; and Daiwa Securities Co Ltd, the group’s retail securities firm, will distribute the bonds to Japanese retail investors.                               

To pursue its commitment to social responsibility, Daiwa Securities Group has been actively involved in the Impact Investment initiative, seeking out investments that achieve social impact while attaining appropriate financial return.

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