EDB Policy for Raising Capital
The EDB funding strategy establishes that the Bank raises funds to fund its activities in the international debt capital markets, as a core source of relatively cheap and
long-date financing denominated in Eurocurrencies, such as US dollars, Euros, Euroroubles and others, from institutional investors and private banking clients under the bank’s EMTN program, syndicated loan markets, local currency markets, including member state and
non-member state markets, and various forms of project-tied financing targeting commercial banks and other interested
co-investors.
We believe that such an approach will help the Bank to raise
large-scale financing from institutional investors on favorable terms in stable market conditions, and to attract financing, when needed, from investors oriented to local currency instruments, which are less correlated with global liquidity conditions — when such conditions are less favorable for USD denominated Eurobond issues. Segments of local currency markets that are potentially interesting to the EDB include: the Rouble, Tenge, Swiss Franc, Yen markets, as well as local issues in Euros (for example, in Germany). A combination of the aforementioned markets and currencies will allow the Bank to minimize execution risk at any given moment, as well as to narrow the currency mismatch between its assets and liabilities.
Going forward, the Bank also plans to use asset backed instruments to sell risk off its balance sheet, and
project-tied financing, involving public and club syndicated loans,
ECA-covered financing (tied and untied) and other forms.
