Dow Jones Interview with Igor Finogenov, the Chairman of the Eurasian

The Eurasian Development Bank is looking to tap the loans market after plans for a debut eurobond have been put on hold due to unfavorable market conditions, the chairman of the bank’s executive board told Dow Jones Newswires in an interview. «We had plans to issue bonds, but the markets are not in good shape at the moment so we’re waiting for an opportunity to start our program. At the moment, we do not know when that will be,» said Igor Finogenov, the chairman of the EDB’s executive board. «In the meantime, we will continue to rely on the loan market for funding,» Finogenov added.

The EDB last tapped the loan market in December, when it raised a $400 million, one-year loan facility. The deal paid an interest rate of 60 basis points over Libor and was lead-arranged by ABN Amro, HSBC, ING and Sumitomo Banking Corporation Europe Ltd. Since last August, many emerging market corporate borrowers have switched to the loan market for funding after financial markets were thrown into turmoil, closing the international debt capital markets to all but sovereigns and quasi-sovereign issuers. «Over the long term, we plan to use all possible instruments for funding assets in our portfolio,» Finogenov said.

and Kazakhstan set up the EDB in 2006 to help foster development of economic growth and mutual economic ties. To date, around $1.9 billion of its $8 billion portfolio have been invested in projects across the region, Finogenov said. «The main mission of the bank is to help the states’ transition to market economies. That includes helping solve social and ecological problems in the territory of member and neighboring countries,» said Finogenov. This year, the EDB is seen extending its membership to neighboring countries. «Tajikistan has formally applied to be a member of the bank, and Armenia, Belarussia and Kyrgyzstan have all expressed interest in becoming members. They are currently going through procedures with their governments to formally apply and we expect to receive their applications very soon,» Finogenov said. Tajikistan is expected to join in around four months, while the other potential countries are likely to join some time this year, Finogenov added. «We have a rather big portfolio at the moment and these new countries will help us expand further, though the focus will remain the same. We will continue to invest in projects that have big integration impacts on the whole territory — these will be the first in the portfolio to get done.»