OREANDA-NEWS. October 01, 2009. Eurasian Development Bank, bonds of which are listed on the special trading floor of the Regional Financial Center of Almaty provided Kazakhstan Stock Exchange (KASE) with a press release, reported the press-centre of KASE:

Eurasian Development Bank (EADB) is planning to issue Euro bonds in the amount of USD500 m with 5 year maturity. September 22 this year, the Bank set yield before maturity on Euro bonds at 7.375% APR. The issue was made according to Rule 144a and Appendix Reg S. Organizers are Deutsche Bank, JP Morgan and Royal Bank of Scotland. Investor order book exceeded USD5 bn. Thus, demand exceeded offer more than 10 times. According to experts the EABD issue was estimated in fair manner. It became the best according to placement terms among all Euro bonds issued last year by Russian and other CIS issuers.

"Such result and interest of international investors to securities of the bank were  a consequence of high quality of EABD assets, precise development strategy, and clear and transparent investment decisions made by the Bank, -  EABD Chairman Igor Finogenov said. - Of course its status of international financial organization played an important role".

According to Mr Finogenov, "this successful project will allow the Bank for, despite the crisis, implementing its investment strategy, increasing project portfolio, without asking for budget funds from founders of the Bank - Russia and Kazakhstan". "The funds received from the deal are aimed to implement important social and economical projects in Russia and Kazakhstan, Armenia and Tajikistan",- Mr Finogenov added.

According to Evgeniy Prilepskiy, Board member and deputy Chairman, responsible for investment activity of EABD, "the issue of Euro bonds under the EMTN program showed the investment strategy was selected correctly. The market shows substantial interest of investors to international development institutions demonstrating transparency in loan process and precise investment decisions. Investors seem to have become interested after the project portfolio reached KZT1.2 bn with EABD investment assets remaining of high quality".

Dmitriy Krasilnikov, Board member, responsible for corporate financing and financial institutions said 'large' appetite' on the side of global funds was triggered with supranational status of EABD, and attractive financial indicators, specifically, capitalization, leverage and short-term liquidity. Thanks to the pricing strategy the target yield at 7.75 % APR was cut to 7.375 %. Moody's, S&P and Fitch Ratings rated the issue at А3 / ВВВ / ВВВ".

This issue of Euro bonds was planned and made under the current EMTN Program, registered last year on the London Stock Exchange with a total volume USD3.5 bn. Earlier this year, in April and June, the Bank issued international bonds in Kazakhstan for a total of KZT20 bn (around USD133 m). It is expected in the nearest time EABD enters ruble denominated borrowing markets.