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 2009 borrowing programme

The EBRD will continue to follow three 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 encourage the development of capital markets.
  

Under the 2009 Borrowing Programme EBRD is expected to borrow approximately €3-4 billion in 2009 (including up to €500 million under a 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).

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 allows investors to restructure notes to reflect a changed investor market view. EBRD's commitment to buyback its bonds, which has been critical for private placement investors over the years, resulted in the Bank repurchasing 13 per cent of its debt. In the current climate, with market illiquidity, this undertaking has never been more important.

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 exchangeable bonds
• Yield curve based products where the payoff is linked to a variety of interest 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 encourage 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 Brazilian Real. The Bank has issued in a total of 36 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.