EDB closes the order book for its Series 09 bonds for a total of RUB 5 billion
Moscow, 28 May 2014. Eurasian Development Bank (EDB), having A3 and BBB ratings from Moody’s and S&P respectively, closed the order book for its Series 09 bonds for a total of RUB 5 billion on 27 May 2014.
The issue envisages a two-year put option at 100% of face value.
Thirty investors placed orders in the course of book building for a total of RUB 9.2 billion. The indicative price range was reduced during marketing from 9.65-9.90% to 9.65-9.75%. The final coupon rate was established at the low of the price range at 9.65% p.a.
Taking into account the situation in the market, the price of the issue, the coupon rate and the demand, EDB decided to accept 21 orders from investors.
The issue was arranged by VTB Capital, Gazprombank, Raiffeisenbank, and Sberbank CIB.
“This issue was not easy for the Bank. The continuous pressure on the rouble because of military actions in Ukraine and the relating political rhetoric have neutralised, to a significant extent, institutional investors’ interest in buying term bonds. Seventy-five percent of our issue was purchased by Russian banks, which are motivated to get out from investment quickly. Yet, we managed to reach a compromise with investors by including in our issue a two-year put option, a practically zero re-subscription, and the narrowest, since the beginning of 2014, spread to the yield curve of federal loan bonds for initial placements, at 165 b.p. I would like to thank our arrangers for their professional work,” said Dmitry Krasilnikov, Deputy Chairman of the Management Board at EDB.
Additional Information
Eurasian Development Bank is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital exceeds US $1.5 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan. Read more at https://www.eabr.org.