EDB Placed €50 Million Worth of Commercial Papers as Part of $3.5-Million Programme

Almaty, 20 May 2011. On the 18^th and 20^th of May 2011 the Eurasian Development Bank (EDB) placed its debut commercial papers (for $25 million worth with 184-day maturity and €32 million worth with 364-day maturity, accumulatively for up to €50 million approved by the EDB Executive Board, as part of the Bank’s Euro-Commercial Paper Programme totalling $3.5 billion.

The papers were placed among European and Russian institutional investors. UBS Limited and VTB Capital plc acted as dealers.

“We are satisfied with the placement terms and interest from investors. As importantly, these issuances of commercial papers mark the beginning of the Bank’s credit history in the short-term segment of the capital market, which is new to us. I have no doubt that the Bank’s successful activity in this segment will also allow the cost of its longer-term borrowings to be reduced,” commented Dmitry Krasilnikov, Member of the EDB Executive Board and Managing Director for Corporate Finance. “In addition, the placement of commercial papers is fully in line with our tasks to enhance the flexibility of the Bank’s liabilities management and to reduce the cost of liabilities”.

Apart from these issuances, the EDB (whose credit ratings from Fitch/S&P/Moody’s were confirmed at BBB/ВВВ/А3, respectively) has outstanding Eurobonds for $20 billion tenge due in April 2014 and for $500 million due in September 2014. These Eurobonds were issued under the Bank’s EMTN Programme. The Bank also has two outstanding local issuances denominated in roubles for a total of RR10 billion, with an offer due in 2 and 3 years, respectively.