Eurasian Development Bank (EDB) placed its tenge-denominated securities to the tune of KZT 20 billion in Kazakhstan.
The placement was made on 18 August at the Kazakhstan Stock Exchange (KASE) through a special auction. The bonds have a coupon rate of 7.2% per annum and will mature in five years.
"We are satisfied with this placement, which took place after the break caused by the reform of pension funds in Kazakhstan. The pricing conditions meet the requirements of the National Bank of Kazakhstan, which is an anchor investor in EDB bonds on behalf of the GNPF, and the expectations of EDB itself, which plans to use the raised money to increase its project portfolio. We hope that in the future the range of investors in our securities will expand to a certain extent and the conditions of raising funds in the tenge will be predictable," says Dmitry Krasilnikov, Deputy Chairman of the Management Board at EDB.
The proceeds from this placement will be used to finance the Bank's project operations in Kazakhstan.
In the framework of its first bond programme, which totals KZT 150 billion (in the tenge equivalent) and was registered by the Committee for the Control and Supervision of the Financial Market and Financial Institutions of the Republic of Kazakhstan, in December 2012 EDB made its first placement of tenge-denominated bonds for a total of KZT 9.9 billion, which will mature in 2017.
In April 2013 EDB registered its second bond issue within the first bond programme, totalling KZT 40 billion. The same month it made a successful placement of tenge-denominated bonds in the amount of KZT 15 billion, maturing in 2018. Both issues were rated A3 by Moody's and are traded at KASE. In October 2013 EDB made an additional offering of the second bond issue to the tune of KZT 16.6 billion. The current total value of the second issue is KZT 31.6 billion.
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.