OREANDA-NEWS. December 04, 2007. The European Bank for Reconstruction and Development has launched the first true Global bond in roubles by issuing a 2 billion rouble fixed rate bond aimed at international investors in Europe, Asia and the US. This bond issuance will enable the Bank to respond to the growing demand of its clients in Russia for local currency financing, reported the press-centre of EBRD.

The Bank’s RUB 2 billion bond, issued yesterday, has a 3-year maturity and pays a coupon of 6,5 per cent, with a price of 99,735 per cent, yielding 6,6 per cent. The issue is lead-managed by J.P. Morgan Securities Limited. The bonds will be cleared through Clearstream and Euroclear.

The EBRD has now raised a total of RUB 23,5 billion through bond issuance to finance a broad range of projects in its largest country of operation. It first accessed the Russian floating rate market in 2005 issuing rouble bonds at domestic investors. In January 2007 the Bank launched its first Eurobond in roubles targeted to international investors. The latest Global bond has been structured in such a way as to broaden the EBRD’s investor base still further, by giving access to the Bank’s rouble funding programme to the US institutional investor community.

The Bank’s rouble loan portfolio continues to grow with 43 loans totalling RUB 32,5 billion signed as of today. When the EBRD first tapped the Russian bond market in May 2005, its loan portfolio consisted of seven rouble loans totalling RUB 3,8 billion. This growth trend is set to continue.

Following are terms and conditions of the bond:
Issuer: European Bank for Reconstruction and Development (EBRD)
Issue Amount: Russian roubles 2 billion
Maturity Date: 20 December 2010
Coupon: 6,50% annually every 20 December
Issue price: 99,735%
Lead Manager: J.P. Morgan
Ratings: Aaa (Moody's), AAA (S&P), AAA (Fitch)
Listing: London Stock Exchange