EBRD Issues Five-Year 3b Bond

Published: 18-Jun-2009

EBRD has issued to finance its existing rouble loan portfolio and provide funding to support long-term rouble lending activities.

The European Bank for Reconstruction and Development (EBRD) has launched a five-year 3 billion rouble bond, returning to the domestic market for the second time this year to raise funds for its local currency lending programme in Russia which has reached 86 billion roubles.

The EBRD’s rouble lending programme mainly targets clients who do not have access to export revenues and are therefore keen to avoid foreign currency exposure.

The issue, which was priced below the MosPrime benchmark, has attracted 11 bids totalling 8.2 billion roubles. The Floating Rate Note (FRN) is linked to MosPrime, the Russian money market reference rate created with the EBRD’s support in 2005.

It brings to 44.9 billion roubles the rouble funding raised so far by the EBRD on both domestic and international rouble bond markets. This includes 19.4 billion roubles raised through seven fixed rate issues on the rouble euro bond market since 2007. These bonds were placed predominantly with continental European and Asian investors.

The five-year FRN is underwritten by a syndicate of international and Russian banks. ZAO Citibank, ING Bank (Eurasia) ZAO (Closed Joint Stock Company) and ZAO Raiffeisenbank are the official joint lead managers of the new issue. In addition, other banks in syndicate are Goldman Sachs OOO, Bank Westlb Vostok ZAO, BNP Paribas ZAO, Credit Europe Bank Ltd and KMB bank ZAO.

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