The Eurasian Development Bank’s Council establishes the Digital Initiative Fund and discusses the Bank’s performance in 2019

30 June 2020

Almaty, 30 June 2020. The Council of the Eurasian Development Bank (EDB) held an in-person videoconference meeting. The meeting was chaired by Askar Mamin, Prime Minister of Kazakhstan, and attended by plenipotentiary representatives of the Bank’s shareholders: Armen Hayrapetyan, Deputy Minister of Finance, from Armenia; Dmitry Yaroshevich, Deputy Minister of Economy, from Belarus; Baktygul Jeenbayeva, Minister of Finance, from the Kyrgyz Republic; Anton Siluanov, Minister of Finance, from Russia; and Faiziddin Qahhorzoda, Minister of Finance, from Tajikistan.

When opening the meeting, Askar Mamin thanked Andrey Beliyaninov, former Chairman of the EDB Management Board, for his fruitful work and noted his achievements in fostering Eurasian economic integration. The Prime Minister of Kazakhstan also wished success to Nikolay Podguzov – the newly appointed head of the Bank.

The Council approved the Regulations of the EDB Digital Initiative Fund. The new Fund will assist the Bank’s member countries in creating digital transformation tools and practices by integrating their information resources and participating in the development and financing of projects, including those implemented under the EAEU 2025 Digital Agenda.

In line with the best practices of international development banks, the EDB Council set up a Human Resources Committee and approved its regulations.

The Council also discussed the EDB’s performance in 2019.

The Bank’s investment portfolio increased by 25.6% to US $4.3 billion. The balance sheet portfolio grew by 31%, to US $2.8 billion. Russia and Kazakhstan account for the largest shares of the portfolio (45.7% and 40.1%, respectively).

The distribution of the current investment portfolio by industry remained unchanged compared to the previous year, with power (21.1%), transport (18.9%), and the financial sector accounting for the largest shares.

Twenty-seven project agreements totalling US $1.3 billion were signed in 2019. The Bank was actively developing its presence in all its member states and, subject to its current Strategy, financed national development projects and projects with a significant integration effect.

The percentage of integration projects in the Bank’s portfolio exceeded the target and totalled 54.4%.

The Bank’s borrowings totalled US $2.6 billion in 2019.

Over the year, the EDB placed five tenge-denominated bond issues for a total of KZT 80 billion, five rouble-denominated issues for a total of RUB 23 billion, and made a secondary placement of Eurobonds for a total of US $201 million.

The agreement signed with the National Bank of Kazakhstan, which makes it possible for the EDB to raise funds of up to KZT 200 billion, was an important milestone in promoting investments in Kazakhstan.

The Bank’s financial stability was confirmed by high ratings from rating agencies. The ratings on the international scale are as follows:

Moody’s: Baa1 (two notches higher than the sovereign ratings of Kazakhstan and Russia);

Fitch: BBB+ (one notch higher than the sovereign ratings of Kazakhstan and Russia);

Standard & Poor’s: BBB (one notch higher than the sovereign ratings of Kazakhstan and Russia); and

ACRA: A- (one notch higher than the sovereign rating of Kazakhstan and the same as that for Russia).

The ratings on the national scale are:

Standard & Poor’s: kzAAA (the highest rating on Kazakhstan’s national scale);

Fitch: AAA(kaz) (the highest rating on Kazakhstan’s national scale); and

ACRA: AAA(RU) (the highest rating on Russia’s national scale).

Because of the significant growth in the investment portfolio, the Bank has managed to maintain its quality. The share of provisions in the balance sheet portfolio declined from 3.2% to 2.4%.

The Bank’s profit in 2019 amounted to US $68.9 million. The return on equity was 3.8%.

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. 

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)

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