EBRD Launches New Rouble Eurobond

The European Bank for Reconstruction and Development (EBRD) launched its second rouble-denominated Eurobond this year to meet its clients’ demand for funding in local currency in Russia.

The Eurobond is a 3-billion rouble floating rate instrument, linked to the 3-month rate for Russia’s RUONIA Overnight Interest Rate Swaps (ROISfix), a benchmark supported by the Central Bank of Russia, the EBRD said in a statement on Friday.

The new rouble-denominated Eurobond has a three-year maturity and pays a spread of 35 basis points over the 3-month ROISfix rate.

ROISfix is an index of fixed interest rates against the central bank’s Rouble Overnight Index Average (RUONIA), which gives market participants the possibility to hedge the interest rate exposure on their liabilities. It was launched in April 2011.

Last January the EBRD issued a 7.5 billion rouble Eurobond with a three-year maturity, the first ever to be linked to ROISfix.

The new issue will settle on 14 November 2013 and is lead managed by Raiffeisen Bank International, the EBRD said. The bonds will be cleared through Euroclear and Clearstream and will be listed on the London Stock Exchange.

The EBRD is rated triple-A by S&P, Moody’s and Fitch.

Russia is rated BBB by S&P and Fitch and Baa1 by Moody’s.