International Financing Review. Rouble debut.

The Eurasian Development Bank (EDB), rated A3/BBB/BBB, which was formed by Kazakhstan and Russia in 2006, has mandated Raiffeisenbank and RON Invest for four Rbs5bn (US$158m) seven-year bonds with quarterly and half-yearly coupons for what will mark its debut rouble offerings.

On its previous visit on April 28, 2009, the EDB launched an inaugural T15bn (US$100m) five-year bond under its then existing borrowing programme. The international Kazakh tenge bond pays 15% in the first year, with the coupon linked to the Kazakh inflation rate plus 1% from the second year, within an 8%–16% range.

Proceeds from the tenge offering were to help finance infrastructure projects in Kazakhstan and the issue was placed with Kazakh pension funds and insurance companies.

Last year, EDB's intentions of debuting with a US$300m Eurobond did not materialise, the bank having approved a US$3.5bn EMTN programme in December 2007 with Citigroup and Goldman Sachs as joint arrangers.

The bank's board official, Dmitry Krasilnikov, then said that the Kazakhstan-based international financial would start issuing bonds off the EMTN programme once all details are finalised.

The EDB plans to print at least three issues a year in the currencies of its member states, having granted membership to Tajikistan in June and to Armenia in April. Belarus and the Kyrgyz Republic are also due to join the organisation by 2010.