The EBRD's capital markets issues in its countries of operation assist in furthering their economic transition to market-based economies. The key advantages of such issues are:
- A triple-A credit curve gives corporations wishing to access the market an alternative benchmark to the government curve.
- Innovative techniques used by the Bank help to foster the overall development of the market.
- Providing a triple-A conduit allows new investors to gain exposure to the local market, allowing the dissociation of credit and currency allocation risks. This is often a precursor to these investors participating in the local government and corporate/bank debt market.
- For domestic investors, an issue by the EBRD provides an opportunity for credit diversification in their portfolios.
Highlights
RUB 3.5 billion Global bond
In May 2008 the Bank increased its Russian Rouble issue by RUB 0.5 billion. Together with the original issuance of RUB 2 billion and the increase of RUB 1 billion, this brings the total issue size to RUB 3.5 billion (EUR 96.4 million). The bond aimed at international investors matures in February 2010 and pays a coupon of 6.5 per cent. Both the original issue and the increases are lead-managed by J.P. Morgan Securities Limited. The bonds are cleared through Clearstream and Euroclear.
RUB 6.5 billion Eurobond
The Bank in July 2008 further increased its first deliverable Russian Rouble (“RUB”) Eurobond issue by RUB 500 million. Together with the original issuance of RUB 2 billion on 12 January 2007 and increases of RUB 4 billion, this brings the total issue size to RUB 6.5 billion. The Eurobond pays a coupon of 6% and aimed at international investors. It enables the Bank to respond to the growing demand of its clients in Russia for local currency financing. The bonds are cleared through Clearstream and Euroclear.
More information about the RUB 5 billion Domestic Bond Issue including Terms and Conditions.
Further RUB 5 billion and RUB 7.5 billion 5 year 3-month MosPrime-linked FRNs were issued in 2006.
HUF 13 billion Eurobond
In September 2004 the Bank issued a two year Hungarian Forint bond with a 10 per cent coupon. The issue sent a positive message to the market, signalling that investors had expectations of the strengthening of the Hungarian currency and that interest rates were starting to fall.
HUF 10 billion Eurobond
In January 2004 the Bank launched a Hungarian Forint 10 billion Eurobond issue with a five year final maturity. The issue, which was well-received by the investment community, took advantage of demand for HUF assets from retail and institutional investors in continental Europe ahead of Hungary’s accession to the EU.
SKK 1.3 billion Eurobond
In October 2002 EBRD launched a Slovakia Koruna 1.3 billion zero-coupon bond with a 15 year final maturity. This was placed with domestic institutional investors seeking duration through a AAA asset. The EBRD had not issued in the Slovakia Koruna market since 1999, consequently this transaction built on the reputation already established by EBRD in this market.
RUB 1,581 million Promissory Notes
In December 2001, the Bank transacted its inaugural issue of Russian Rouble denominated debt targeted to Russian investors. It sold RUB 396 million of zero coupon promissory notes with a three month final maturity. Subsequently it has issued five similar tranches of notes, most recently in March 2003. With this programme, the EBRD was the first international financial institution to borrow in the domestic Russian market, where it is currently seeking to strengthen its capital market activities and to offer highly rated assets to investors, in order to meet its need for Rouble financing.
CZK 4 billion Eurobond
The Bank launched its first Czech Koruna issue in two years in November 2001. The CZK 2 billion zero coupon issue, subsequently tapped for a further CZK 2 billion, had a 15 year maturity. It took advantage of renewed investor appetite for CZK assets, owing to a scarcity of 15 year Czech government new issue supply, and the success of the issue was underlined by the subsequent increase.
HUF 20 billion Global Bond
In June 2001 the EBRD issued the first-ever Global bond denominated in Hungarian Forint. The HUF 20 billion bond has a one year maturity, carried a coupon of 9.25 per cent and was priced to yield 9.55 per cent. The financing followed the Hungarian government's decision to relax restrictions on the country's HUF foreign exchange laws. The issue was part of the EBRD’s normal funding programme and, most importantly, it was a strong signal of the Bank’s ongoing commitment to the Hungarian capital markets.
PLN 1 billion Global Bond
In November 2000 the EBRD issued the first-ever Polish Zloty 1 billion Global bond, building on its success in the Polish market over a long period. With more than 18 issues in the Polish market since its inception, including the first-ever “true” (non-synthetic) Eurobond in September 1999 and the first synthetic issue in January 1996, the Bank has maintained a leading presence in the Polish capital markets.
EEK 100 million Eurobond
The Bank launched an Estonian Kroon 100 million Eurobond issue in 1999 with a three year final maturity.
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.
