A broad range of financial instruments

The EDB provides long-term investment lending and other forms of financial support for the projects implemented in the Bank's member states. The support covers key sectors of the economy: transport infrastructure, digital transformation, renewable energy, agriculture, manufacturing, and others.

Targeted long-term financing is provided for the modernisation and expansion of existing (or creation of new) production. It is characterised by a long-term loan, a grace period for principal repayment, and the possibility to use the acquired equipment as collateral.

The EDB provides limited recourse project financing for large infrastructure and industrial projects, both independently and in syndication with other financial institutions.

This is a form of financing based on the repayment of funds from project cash flows, where main risks are allocated to the project, while individual risks are distributed among the participants - the project company, investors/sponsors, and other participants - within the limits of their responsibility and risk management capabilities.

Each transaction is structured individually based on the participants, the project specifics, and the nature of the cash flows.

With the support of the Islamic Development Bank Group, the Eurasian Development Bank is developing Islamic finance. These instruments are aimed at expanding access to financial resources for those clients from the member states who adhere to the principles of the Shariah financial system.

The Bank has implemented a pilot project based on the commodity murabaha mechanism in railway logistics and is developing other pilot projects in leasing (ijara), digital postal services, and financial inclusion.

Instruments

• Murabaha (instalment plan with a mark-up)
• Commodity Murabaha (trade finance structure with a mark-up)
• Mudaraba (partnership mode of finance)
• Sukuk (bond equivalent)
• Istisna (fixed assets construction)
• Forward Ijara (leaseback)
• Wakala (agency investment)

Hybrid and other types of contracts.

The EDB supports the current operational and trade needs of enterprises in its member states through short-term and trade finance instruments. This type of support is aimed at ensuring the continuity of the production and export-import cycles.

The Eurasian Development Bank provides a full range of documentary instruments to ensure the reliability of international trade transactions, primarily between the Bank's member states. Documentary operations include the EDB's execution of all types of transactions under documentary letters of credit and guarantees to ensure the reliable fulfillment of contractual obligations by the parties to the agreement, thus protecting both the exporter (from the risk of non-payment) and the importer (from the risk of non-delivery).

The EDB supports the implementation of infrastructure and socially significant projects structured on PPP principles in the Bank's member states.

The necessity to build new supply chains results in the needs for infrastructure development significantly exceeding the capacity of national budgets. In response to these challenges, the EDB aims to ensure the availability of financial resources for the implementation of large-scale public-private partnership (PPP) projects in Eurasia.