YEREVAN, September 23. /ARKA/. The Eurasian Development Bank (EDB), with Armenia among its members, has completed placement of seven-year Eurobonds worth 500 million US dollars yielding 300 basic points against average market swaps (5.292% per annum). The Eurobond coupon is 5% per annum, the bank’s press office reported.
The Eurobond demand was eight times as high as the offer and amounted to 4 billion US dollars. Owing to high demand the bank managed to reduce the yield during the placement day from the initially announced spread to average market swaps – from 337.5-350 to 300 basic points. Despite this, the number of investors has not changed.
The EDB is a non-indexed issuer, which means the placement was to check actual investor confidence in EDB credit, managing director on EDB corporate finance Dmitry Krasilnikov said. The results of the check-up were satisfactory, he added.
A total of 313 investors participated in the bid register. About 40% of the issues were bought back by investors from US, 27% by investors from United Kingdom, 8% – from Germany and Austria, 8% – from Switzerland and 17% by investors from other regions. Investments funds purchased 77% of eurobonds, banks obtained some 19% of the bonds and other investors 4%.
Since September 6, the EDB has had a road show placement in Europe and the USA. After the roads show results, it was decided to put off the placement until the outcome of US Fed open markets’ committee meetings is clear.
The placement was arranged by Deutsche Bank, HSBC, BNP Paribas and J.P.Morgan.
The Eurasian Development Bank
Eurasian Development Bank is an international financial organization founded by Russia and Kazakhstan in January 2006 with the purpose of assisting in the development of market economy of member-states, their stable economic growth and expansion of mutual economic-trade relations. -0–
