Standard & Poor’s Assigned Rating to EDB Syndicated Loan Transaction

Standard & Poor’s assigned the ‘ВВВ+’ long-term rating to EDB’s forthcoming syndicated loan transaction.

EDB commenced syndication of this $125-million loan earlier this month. The loan will be provided to EDB for two years at LIBOR+1% per annum, with an option to extend.

The lead managers are ING, SMBC, WestLB and RZB. EDB will utilise the loan for general corporate purposes, including financing of its growing investment portfolio.

Standard & Poor’s elaborated that its decision to assign a rating to EDB’s transaction was based on clear positioning of the Bank as a sub-regional international financial institution playing an important political role in the region, and strong support from the Bank’s stakeholders, Russia and Kazakhstan. The agency also stressed that financial viability and support from the stakeholders of EDB are the primary criteria for assessing its creditworthiness.

In October 2007, Standard & Poor’s affirmed its ratings assigned to EDB (long-term ‘ВВВ+’, short-term ‘А-2’, forecast ‘stable’).