Funding

The EBRD is renowned for its flexibility and the diversity of its debt products. The timing and nature of the EBRD's issuance is driven by opportunities that arise across all markets. The proceeds of transactions are typically swapped into a floating US Dollar LIBOR or EURIBOR pool, to facilitate asset and liability management. However, owing to rising demand for local currency financing, the EBRD increasingly holds proceeds in the currencies of its countries of operations.

The 2008 borrowing programme

The EBRD will continue to follow two paths:

• seeking attractive opportunities for issuing products in emerging markets;
• furthering its drive to be a partner for sophisticated investors in structured products, and
  
• issuing bonds in the currencies and markets of its countries of operations as part of its mandate to stimulate and enlarge the development of capital markets.

The 2008 Borrowing Programme allows the EBRD to borrow up to €2.0 billion in 2008 (including a €500 million Local Currency Borrowing Programme, established for borrowings denominated in the currencies of the countries of operations, which are not convertible or are not fully convertible) supplemented by amounts remaining under the 2008 borrowing programme, together with any early redemptions, buybacks and issues called by/put to the Bank. In total, the Bank is likely to borrow €2-3 billion in 2008.

Repurchasing Debt

The EBRD actively supports its own debt in the secondary market. By bidding competitively on its publicly traded bonds, the Bank seeks to enhance their liquidity and trading performance. In the case of private placements, the EBRD commits to being the buyer of last resort and offering the facility to restructure notes throughout the life of the debt. By working as a market partner with its investors, the Bank provides them with greater control over their portfolio and the ability to realise their profits. To date the EBRD has repurchased 13 per cent of its debt.

Structured products

The EBRD draws on its extensive and varied experience in the issuance of structured debt products to execute transactions that satisfy investor needs.  In all our issues a great deal of care is taken to ensure that the investor's interests are protected.

Past structured issues have included:

• Commodity linked issues where the return to investors is dependent on a single commodity or a basket of commodities
• Equity linked products such as debt linked to single and multiple equity indices, customised equity baskets and single equities
• Yield curve based products where the payoff is linked to variety of swap rates and yields
• FX linked products where the payoff to the investor is based on the performance of interest rates and FX rates
• Credit linked issues where the return to investors is dependent on a single credit or a basket of credits
• Fund linked products which provide investors with exposure to the performance of a fund

Local currency bond issuance

The EBRD issues bonds in the currencies and markets of its countries of operations as part of its mandate to stimulate and enlarge the development of capital markets, as enshrined in the Agreement establishing the Bank. 

More about Local currency funding.

Other exotic markets

EBRD has also played an active and innovative role issuing in other markets, such as South African Rand, New Taiwan Dollars, Turkish Lira, Mexican Peso and Indian Rupee. The Bank has been a consistent issuer in Taiwan over the past few years and, in 2004, has launched a variety of plain vanilla and structured bonds. In the past few years, the Bank has also pioneered bond issuance linked to the Turkish Lira, to the Brazilian Real, and to the Indian Rupee, and issued plain vanilla bonds in the Turkish Lira, the Mexican Peso and Iceland Krona. The Bank has issued in a total of 35 different currency markets.

Notice to readers
Nothing in this site or any materials shall be construed, implicitly or explicitly as containing any investment recommendation or advice, and constituting an offer of, or an invitation by or on behalf of, EBRD to purchase or sell any securities.