The EDB arranges GTLK’s seven-year Eurobonds for a total of US $600 million

21 October 2021

Moscow, 21 October 2021. On 20 October 2021, the Eurasian Development Bank (EDB), together with other arranging banks, successfully listed the State Transport Leasing Company’s (GTLK) seven-year Eurobonds for a total of US $600 million, with a yield of 4.35% per annum, on the Vienna Stock Exchange. Investor demand amounted to nearly US $2 billion, exceeding the offering by more than three times. The investors include Russian and international financial market participants such as banks, investment and insurance companies, hedge funds, and companies managing pension accruals from Asian countries, as well as Austria, the U.K., Germany, and Switzerland.

At the time of bookbuilding, the yield was benchmarked at 4.75–4.875% per annum. With the investors’ significant interest, the book was being built rapidly, which made it possible to reduce the price range twice (to 4.625% and further to 4.375–4.500% per annum). When the bids exceeded US $1.9 billion, GTLK announced the final offering terms: 4.35% (with a fixed coupon of 4.349%) per annum for the final issue worth US $600 million. Thus, the yield was reduced by 40–53 bps compared to the initial benchmark.

“We are currently paying particular attention to developing consulting services for investment banking. Our team has high qualification and expertise in global financial markets and is experienced in successfully offering debt instruments to domestic and international investors. This landmark transaction marks a new stage in our cooperation with GTLK, which now includes not only financing for the company’s projects but also the raising of finance in debt capital markets,” said Daniyar Imangaliyev, Vice Chairman of the EDB Management Board.

Additional Information:

The Eurasian Development Bank (EDB) is an international financial institution promoting integration and development in its member countries. For 15 years, the Bank has worked to strengthen and broaden economic ties and foster comprehensive development in its member countries – Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, Russia, and Tajikistan. The EDB's charter capital totals US $7 billion. The EDB’s portfolio mainly consists of projects with an integration effect in the areas of transport infrastructure, digitalisation, green energy, agriculture, industry, and mechanical engineering. The Bank adheres to the UN Sustainable Development Goals and ESG principles in its operations.

The EDB Media Centre:

Azima Sapargaliyeva +7 (777) 750 00 08 (Almaty)

Sergey Gorbachev +7 (916) 727 22 00 (Moscow)

pressa@eabr.org

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2021