EDB places Eurobonds for a total of US $500 million

The Bank has chosen the best day to place its Eurobonds this year.

Almaty, 23 September 2013. Eurasian Development Bank (EDB) has completed the placement of its seven-year Eurobonds for a total of US $500 million, with a yield of 300 bps over average market swaps (5.292% p.a.). The coupon rate is 5% p.a.

The demand for EDB’s Eurobonds has exceeded the supply by eight times, reaching US $4 billion. Thanks to this high demand that Bank managed, over the day the placement was arranged, to reduce the yield on its issue from 337.5-350 bps (the preliminarily declared spread over average market swaps) to 300 bps. The number of investors who took part in the issue remained practically unchanged. «EDB, as an issuer, is not included in any country indexes and remains a «non-indexed issuer,» says Dmitry Krasilnikov, Member of the EDB Management Board and Managing Director for Corporate Finance. «This means that our placement, despite the favourable market environment, may be the best one this year, was a check of investors’ trust to EDB’s credit. We are satisfied with the results of this check.»

A total of 313 investors took part in the order book. About 40% of bonds were bought by investors from the U.S., 27% from the U.K., 8% from Germany and Austria, 8% from Switzerland and 17% from other regions. Investment funds bought 77% of EDB’s Eurobonds, banks 19% and other investors 4%.

Since 6 September 2013 EDB has been conducting a roadshow for this issue in Europe and the U.S. where the Bank’s representatives had meetings with investors to discuss the possible placement of the Eurobonds. As a result of this roadshow, it was decided to postpone the placement until the results of the meeting of the U.S. Federal Open Market Committee, which was held on 18 September 2013, are announced.

The arrangers of this issue are Deutsche Bank, HSBC, BNP Paribas and J.P.Morgan.

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.