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EBRD issues 2 billion rouble fixed rate Eurobond
Funds will help meet Russian clients' growing demand for local currency financing
The European bank for Reconstruction and Development has launched a 2 billion
rouble fixed rate Eurobond aimed at international investors to enable the Bank
to respond to the growing demand of its clients in Russia for local currency
financing.
The Bank’s 2 billion rouble bond, issued this Friday, has a 5-year maturity
and pays a coupon of 6 per cent, with a re-offer price of 99.72 per cent,
yielding 6.067 per cent. The issue is lead-managed by Royal Bank of Canada
Capital Markets. The bonds will be cleared through Clearstream and Euroclear
(pending confirmation).
The EBRD had up to now raised a total of 17.5 billion roubles to finance a
broad range of projects in its largest country of operation, issuing three
rouble bonds aimed at domestic investors on the Russian floating rate market
since 2005. The switch to tapping the Eurobond market for roubles was made
possible by the Russia’s latest currency liberalisation last year.
When the EBRD first tapped the Russian bond market in May 2005, its loan
portfolio included seven Rouble loans totalling RUB 3.8 billion. By the time
it returned to the market for the third time less than 18 months later in
September 2006, the EBRD had 22 such loans totalling RUB 30.1 billion, of
which RUB 8 billion had been syndicated to the market.
This trend is continuing as the EBRD’s Russian business volume surges.
Following are terms and conditions of the bond:
Issuer: European Bank for Reconstruction and Development (EBRD)
Issue
Amount: Russian Roubles 2 billion
Maturity Date: 14-Feb-12
Coupon: 6
per cent
Issue price: 101.345 per cent
Re-Offer Price: 99.720
per cent
Lead Manager: Royal Bank of Canada Capital Markets
Ratings:
Aaa (Moody's), AAA (S&P), AAA (Fitch)
Listing: London Stock
Exchange
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