Interfax. Fitch Rates Eurasian Development Bank’s 15 bln tenge Bond «BBB».
13.05. 2009
Interfax
Fitch Rates Eurasian Development Bank’s 15 bln tenge Bond «BBB»
ALMATY. (Interfax) — Fitch Ratings has today assigned Eurasian Development Bank’s (EDB) KZT15bn index—linked interest notes due 2014 a Long-term rating of ’BBB’,the rating agency says in a Tuesday press release.
The rating is in line with EDB’s «BBB» Long-term Issuer Default Rating (IDR), according to the press release.
The notes were issued under the bank’s USD3.5bn euro medium-term notes program,
«The EDB’s Long-term IDR is mainly driven by support from the Russian Federation and the Republic of Kazakhstan,which are the two founding member states of EDB and respectively own approximately two thirds and one third of the bank’s share capital. Based on the comfort letters signed earlier by the Deputy Prime Minister — Finance Minister of Russia and the Finance Minister of Kazakhstan,and on the strong privileges and immunities the institution was granted at inception by its founding member states,Fitch believes support would be provided in case of need. This opinion has been reinforced by both Russia and Kazakhstan contributing their remaining share of capital of the bank ahead of schedule in 2008,» the release reads.
EDB is an international financial organization established by Russia and Kazakhstan in January 2006 to support the economies of the countries, their steady economic growth and expansion of trading and economic relations. The registered capital of EDB is $1.5 billion and $1 billion was contributed by Russia and $500 million by Kazakhstan.
Recently Armenia acquired a stake in EDB’s registered capital for $100,000.
In December 2008 EDB Council gave the