OREANDA-NEWS. February 18, 2011. Series 04 Ruble bonds of Eurasian Development Bank (EDB) were offered on the Stock Exchange of MICEX. Bonds of the RUB5 bn issue will mature in 7 years. There is a semi-annual coupon payable on the bonds. The issue conditions also stipulate the bondholders' right to present the bonds for redemption in 3 years' time, reported the press-centre of KASE.                                          

During the book-building 40 investors from Russia and abroad submitted orders to the amount of over RUB11.5 bn. As a result the rate of 1-6 coupons was set by the issuer at 7.70% APR (with the initially declared spread of 7.75-8.25% APR).

The funds raised will be directed by EDB to investment financing.

The issue was organized by VTB Capital, Raiffeisen Bank and RON Invest.
                 
According to Dmitriy Krasilnikov, member of the Management Board, Managing Director for Corporate Finance, "the positive dynamics of EDB's loan policy as well as the right time for closing the books, and maybe some good luck have allowed the Bank to place securities with that narrow spread". "However, currently in the conditions of corrections on the world markets, over-purchase is obvious in Russia as well, - says Mr. Krasilnikov. - I don't think that by the end of the year there is going to be a new rate drop, particularly in the light of the accumulated primary offer of securities and an expected moderately-increasing dynamics of the Russian Central Bank's discount rate".