BlackRock has expanded its iShares range with the launch of development bank bond ETF, ETF Stream can reveal.

The iShares USD Development Bank Bonds UCITS ETF (DDBB) is listed on the London Stock Exchange with a total expense ratio (TER) of 0.15%.

Physically replicated, DDBB tracks the FTSE World Broad Investment-Grade USD Multilateral Development Bank Bond Capped index which tracks the performance of multilateral development bank debt.

Multilateral development banks are supranational institutions such as the Asian Development Bank set up by sovereign states with the aim of fostering economic and social progress primarily in developing countries.

To be included in the index, the multilateral development bank bonds must have a minimum amount outstanding of $500m and the shareholders are all of the G7 country members.

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Bonds issued must have at least one year until maturity and be rated investment grade by S&P while each issuer is capped at 25% of the index.