Belarus Development Bank Announces USD 17.16m Bond Offering
OREANDA-NEWS. Belarus' Development Bank (BDB) on June 25, 2013 will start an open subscription to the 19th, 20th and 21st editions of proprietary bonds for entities to the tune of Br150 billion (USD 17.16 million), the bank said in a release.
It will be the first open bond offering in the bank's history.
By selling bonds, the bank seeks to diversify its resource base. The bank offers interest-bearing convertible registered bonds (in book entry form).
The bank offers bonds with par value of Br1 million (USD 114.42). Every edition is worth Br50 billion (USD 5.72 million).
The 19th edition has an 18-month maturity period, 20th edition - two years, 21st edition - three years.
The 19th edition shall yield the refinancing rate of the National Bank (currently 23.5%) minus 5 percentage points; 20th edition - NBB refinancing rate minus 4 percentage points; 21st edition - refinancing rate minus 3 percentage points.
The Development Bank was established on June 21, 2011 after Belarusian President Alexander Lukashenko signed ordinance #261 to create open joint-stock company Bank of Development of the Republic of Belarus.
The Development Bank is Belarus' agent bank to service and repay state loans and external loans attracted against a government security and extended to finance projects included in state programs.
The government holds a 95% stake in the Development Bank of Belarus, while the share of the National Bank is 5%.
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