Cbonds - Eurobonds of Eurasian Development Bank 12 times oversubscribed

Eurasian Development Bank (EDB) (rated BBB/BBB/A3 by Fitch/S&P/Moody’s) set yield to maturity on its 10-year Eurobond at 4.767% p.a. (10-year mid-swaps +295 bp and 10 year UST +303.7 bp). The Eurobonds are to be issued on September 20 in amount of USD 500 mln with maturity of 10 years. Arrangers of the 144a/Reg S issue are BNP Paribas, Citigroup, HSBC and VTB Capital. The book exceeded USD 6 billion. 

Thus, demand was over 12 times the amount on offer. It is the second international eurobond issue by EDB. It is the best issue in terms of offering conditions among 10-year Eurobonds issued by financial institutions of the CIS. During the three-day roadshow, EDB management met with key institutional investors in London, Boston and New York. The final book looks as follows: US investors 34%, UK 20%, continental Europe 28%; commercial banks 12%, and insurance companies and pension funds 7%. «We are extremely happy with the successful offering of our new Eurobond issue, comments Dmitriy Krasilnikov, Board Member of EDB, Managing Director of Corporate Finance. 

From the very start of this deal, EDB planned to significantly „extend“ their debt, while securing a competitive rate to be able to continue supporting major regional infrastructure projects that would contribute to further economic integration in EurAsEC countries. Since investor response to the roadshow was very constructive, lead banks were suggested to announce the price guidance a day earlier than had been planned. This allowed pricing before major economic announcements in Europe and the U.S. Great demand from investors has allowed us to lower the initial price guidance by 35 basis points. Such a successful result and a high interest of international investors in the Bank’s securities have once again confirmed that the Bank is a leading financial institution in the CIS.»