More Belarusian eurobonds possible in 2014
2014-03-20 17:26:57
The Development Bank of the Republic of Belarus does not rule out the possibility of floating eurobonds as early as 2014. The statement was made by DBRB Chairman of the Board Sergei Rumas at the international forum “Capital Market 2014: The future begins now!” on 20 March, BelTA has learned.
The Development Bank has completed all the preparations for entering the international capital market. The Bank has started providing regular financial accounting reports in line with international standards, with their reliability confirmed by an independent auditing company. Two leading international ranking agencies — Standard & Poor’s and Fitch’s Ratings — have assigned credit ratings to the Bank that fully match Belarus’ sovereign rating. In 2013 the Bank greatly increased the number of foreign partners by signing several basic and framework agreements with foreign development banks and financial and credit institutions.
“The work we have done has enabled us to positively evaluate the prospects of entering international borrowing markets,” noted Sergei Rumas. The Bank intends to raise at least $200 million on foreign markets using various instruments. The Bank intends to start with a syndicated loan, with the deal expected to be sealed soon. The floatation of eurobonds will be the next logical step. “It is too early to talk about when it happens. The time will depend a lot on the situation both inside the country and on the international financial market,” said the DBRB Chairman of the Board. Sergei Rumas did not rule out the possibility that it might happen as early as 2014.
The Development Bank has also taken the first steps with regard to export loans by issuing a large export loan to a non-resident on terms specified by Belarus president decree No. 534. OAO Promagroleasing, the Bank’s daughter enterprise, will spend at least $100 million to foster export in 2014.
OAO Development Bank of the Republic of Belarus is a specialized financial institution operating as a stock corporation. It was established by the relevant decree signed by the Belarus president on 21 June 2011 for the sake of raising the reliability of the country’s financial and credit system in addition to fueling the economic development of the state. The Bank has been tasked with financing projects as part of government programs and with providing lending support to Belarusian exporters.