The EDB successfully offers a RUB 5 billion bond issue under the bond programme
Almaty, 12 November 2018. The EDB announces the completion of the technical issue of 001P-02 bonds for a nominal value of RUB 5 billion at the Moscow Stock Exchange under its bond programme (identification number 4-00002-L-001P-02E of 14 June 2018). The coupon rate is set at 8.90% p.a. and the yield is 9.10%. The bonds will mature in 2.5 years.
In the course of premarketing, investors were offered a bond issue for a nominal value of RUB 5 billion maximum, with a target spread to the mean two and three-year zero-coupon federal loan bond yield curve amounting to 100-125 basis points.
The book building started on 30 October 2018, with the initial benchmark coupon rate set at 8.95-9.20% per annum. Investors expressed high interest in the issue that helped to bring the initial range down in the process of book building. The final coupon was set at 8.90% per annum. The actual spread to the zero-coupon federal loan bond yield curve at the final coupon rate was 95 basis points. The book received around 20 bids for over RUB 13 billion. Investors’ bids at the final coupon rate totalled some RUB 12 billion, more than twice the offer amount. The demand has confirmed the market’s high interest in the Bank's offering.
The Analytical Credit Rating Agency (ACRA) rated the bonds at AAA(RU). The EDB has become the first international financial institution to receive the national rating for its bonds for the Russian Federation. ACRA reports that the EDB’s credit quality is ensured, in particular, by its high capital adequacy ratio, the high quality of its loan portfolio, the strong liquidity position, and the systemic importance of the Bank and the projects it funds to the shareholders.
The lead managers for the issue were GPB Bank, Raiffeisenbank, Sberbank CIB, Credit Bank of Moscow, and REGION Broker Company.
The placement agent is GPB Bank.
Additional Information:
The Eurasian Development Bank (EDB) 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. The EDB's charter capital totals US $7 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://eabr.org/
The EDB Media Centre:
Alexander Savelyev +7 (985) 765 23 59 (Moscow)
Azima Sapargaliyeva +7 (777) 750 00 08 (Almaty)
Sergey Gorbachev +7 (916) 727 22 00 (Moscow)