New bond issue: Eurasian Development Bank sells USD 500m in 2022 bonds with 4.767% coupon
September 17, 2012
On 13 September 2012 Eurasian Development Bank (EDB) successfully priced US$500m 10-year Eurobond offering at an annual yield of 4.767%. The notes are expected to be rated A3 (stable) by Moody's, BBB (stable) by S&P and BBB (positive).
BNP Paribas, Citigroup, HSBC and VTB Capital acted as Joint Lead Managers on the transaction.
The transaction represents EDB's second-ever international bond issue and achieved effective spread of 295bps over 10-year mid-swaps and 303.7bps over 10-year US Treasury notes, which is the lowest-ever level both in terms of spreads and annual yield achieved by a CIS financial institution in the 10-year tenor.
During a focused 3-day roadshow effort EDB's management team met key institutional investors in London, Boston and New York to market this offering. The final order-book stood at US$6.3bn, with 34% of the issue size allocated to US investors, 20% to the UK, 28% to the rest of Europe and 17% to Asia. Funds bought 57% of the offering, while 22% was purchased by private banks, 12% by commercial banks and 9% by insurance companies and pension funds.
Commenting on the result of the placement Dmitry Krasilnikov, Managing Director and Member of EDB's Management Board, said "We are extremely pleased with the successful pricing of our new Eurobond transaction. From the very beginning of the execution process EDB's goal has been to achieve significant extension of the maturity profile of our liabilities at a competitive interest rate to allow us to continue with the strategy of supporting important regional infrastructure projects which foster further economic integration in the EurAsEC area. The feedback from the roadshow has been very constructive that our lead-managers have recommended us to announce initial price guidance a day earlier than planned to make sure that we price the transaction before important economic releases in Europe and the US. Overwhelming global investor demand allowed us to tighten initial price guidance by 35bps and the achieved result re-confirms EDB's status as the leading financial institution in the CIS".
Eurasian Development Bank 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. EDB’s charter capital exceeds US $1.5 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.
Issue — EDB, 4.767% 20sep2022, USD
Country of riskKazakhstan
Redemption (put/call option)
М/S&P/F— / — / —
Company — EDB
Full nameEurasian Development Bank