EDB Placed Rouble-denominated Bonds

On 3 November, the EDB placed its debut rouble-denominated bonds for a total of five billion roubles on the Stock Exchange of the Moscow Interbank Currency Exchange. These bonds have a maturity of seven years and bear coupon interest payable semi-annually. In accordance with the terms of this issuance, holders will be entitled to demand redemption in two years.

The book was closed on 29 October with the total demand for the bonds exceeded 9.1 billion. As a result, the EDB set a coupon rate for coupons 1 to 4 at 10.50% per annum. Bids from 47 investors were satisfied during the placement process.

VTB Kapital, Raiffeisenbank and RON Invest acted as arrangers. The Bank will allocate the proceeds of this issuance for financing its investment projects in Russia.

Dmitry Krasilnikov, Member of the EDB Executive Board and Head of Corporate Finance & Financial Institutions, commented that “the correctly selected time of book closure and a little luck allowed the Bank to complete the placement with a narrow spread to sovereign bonds. However, as world markets undergo corrections, overbuying characterises the current market situation in Russia as well. I don’t think we should expect a new rates reduction at the end of this year, especially in the light of accumulated primary offering”.

This is the third EDB’s issuance in this year. In April and July, the EDB issued its debut bonds in two tranches for a total of 20 billion tenge (about $133 million) in Kazakhstan, and in September completed an international Eurobonds issuance for a total of $500 million as part of its EMTN Programme.