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Eurasian Business Briefingloans funding and financing

Dhaka hoping for $40bn infrastructure boost from Xi visit to Bangladesh

Bangladesh TrainsXi visit to Bangladesh: As President Xi Jinping prepares to become the first Chinese head of state to set foot in Bangladesh in 30 years, expectations are high among officials in Dhaka that his visit could see their impoverished country secure as much as $40bn in loans to help it make some much-needed improvements to its infrastructure. (more…)
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$100m CAREC motorway becomes first ADB-AIIB co-financed project

CAREC Transport corridor CAREC motorway: The Asian Development Bank (ADB) yesterday agreed to lend Pakistan $100m to complete the remaining 64km section of the M4 motorway linking the towns of Shorkot and Khanewal in the province of Punjab, giving it the distinction of being the first project to be co-financed by the ADB and the newly established Asian Infrastructure Investment Bank (AIIB).
Pakistan’s Secretary for Economic Affairs Tariq Bajwa and ADB Country Director for Pakistan Werner E. Liepach signed the loan agreement during a ceremony which was also attended by Finance Minister Senator Ishaq Dar and ADB Vice President Wencai Zhang.
“Pakistan must grasp the opportunities presented by its strategic location. Investments in transport and connectivity under the framework of Central Asia Regional Economic Cooperation (CAREC) programmes, as well as other regional cooperation initiatives,” ADB Vice President Wencai Zhang at the signing.
The project marks ADB’s first co-financing agreement with the AIIB which is expected to approve the $100m at a board meeting later this month. The United Kingdom’s Department for International Development (DFID) has also committed a $34m grant for the project. ADB will administer both the AIIB loan and the DFID grant. The project is part of the 1,800 km CAREC transport corridor linking the port city of Karachi in the south, to country’s inland urban centres and onward to Afghanistan and the Central Asia countries.

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Tajikistan looks to EBD to fund Nurek Hydro Power plant

Nurek hydropower plant TajijkistanTajikistan is negotiating with Eurasian Development Bank (EDB) and several other financial institutions to raise the funds it requires to upgrade its Nurek hydro power plant, it was reported this week and needs $600m to complete the project.
“The Nurek HPP (more…)

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Chinese banks rubber stamp 15-year €9.3bn Yamal LNG loan

Yamal LNG

Yamal LNG

Novatek

Yamal LNG loan: The China Exim Bank and the China Development Bank yesterday signed a loan agreement with the Yamal LNG consortium which commits them to extending a 15-year, €9.3bn loan for the (more…)

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Azerbaijan sells $1bn Southern Gas Corridor Eurobond

Shah DenizSouthern Gas Corridor Eurobond: Azerbaijan’s Southern Gas Corridor company has raised $1bn in a 10-year Eurobond at a yield of 6.875% , half the total it requires for the development of Phase 2 (more…)

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China’s PM promises to speed up Yamal LNG financing

Chinese Premier Li Keqiang at Boao Forum March 2016Yamal LNG financing: At a private meeting with Russia’s Deputy Prime Minister Arkady Dvorkovich this week, Premier Li Keqiang pledged to speed up the process of financing the $27bn Yamal LNG project in the Russian Arctic. “We discussed several issues including (more…)

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EU warns major European banks off placing Russian Eurobonds

Russian eurobondsA number of large European banks including BNP Paribas, Credit Suisse Group, Deutsche Bank, HSBC and UBS have decided to withdraw from the placement of Russian Eurobonds. According to the The Wall Street Journal, the decision has been taken on the recommendation of Brussels, which had previously (more…)

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Tehran to raise $1.2bn in South Pars bonds to pay for future development

South Pars mapSouth Pars bonds: Iran’s oil ministry was today due to issue $1.7bn in bonds, $1.2bn of which will be used to fund further development of its giant South Pars gas field in the Persian Gulf. The bonds were scheduled to be issued on the Tehran stock exchange at a 21% annual interest rate.
In January, Oil minister Bijan Namdar Zanganeh said that (more…)

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Russian eurobond issue to go ahead with or without US participation

Russian Finance Minister Anton Siluanov

Russian Finance Minister Anton Siluanov

Russian eurobond issue: Russia is to go ahead with plans to raise finance through a $3bn eurobond issue with or without US participation, according to Finance Minister Anton. “We are confident the issue will take place irrespective of whether the US banks participate or not. We are going to borrow $3 bn on the market this year. I think investors will show interest in Russian securities,” he said late last week.
His remarks (more…)

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Russia sues Ukraine over $3bn debt

Russia's Finance Minister Anton Siluanov

Russia’s Finance Minister Anton Siluanov

Russia sues Ukraine: Russia has filed a lawsuit against Ukraine at London’s High Court after the two sides failed to come to an agreement over a $3bn debt, Russia’s Finance Minister Anton Siluanov said today.
The dispute surrounds (more…)

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Almaty looking to borrow $8bn to fund Kazakh road construction programme

kazakh highwayKazakh road construction: Kazakhstan is looking to raise $8bn in loans to fund its 4,700km road construction programme, the Deputy Chairman of its Roads Committee Amangeldy Bekov said today. “International financial institutions will underwrite about 70% of tall he projects,” he told a press conference. “An initial agreement [has already been] reached with the the International Development Bank, the EBRD, the ASDB and the Islamic Development Banks to finance the Center-West and Center-South projects.”

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IMF ready to offer Azerbaijan rescue package ‘without preconditions’

IMF MD Christine Lagarde

IMF MD Christine Lagarde

Armstrong Economics

Azerbaijan rescue package: The IMF is ready to help Azerbaijan”without any preconditions,” its Managing Director Christine Lagarde said today. Although the country’s economy was being adversely affected by the collapse of oil prices, the government (more…)
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Hong Kong bankers out to capture major slice of OBOR project financing

Financial Services Development Council Chairwoman Laura ChaHong Kong bankers and private equity players are on a mission to capitalise on the infrastructure financing opportunities that China’s ‘Belt and Road’ initiative are likely to throw up over the next decade, the Chairwoman of its Financial Services Development Council Laura Cha told the Asian Financial Forum this week. “Hong Kong (more…)

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Chinese banks agree to finance Jordanian shale projects

Jordan's Prime Minister Abdullah Ensour

Jordan’s Prime Minister Abdullah Ensour

AP

Jordanian shale: The Bank of China and the Industrial and Commercial Bank of China (ICBC) yesterday agreed to lend $1.6bn to a Jordanian electric power supplier for the development of an oil shale project in the Middle Eastern country. The oil project, (more…)

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ADB-AIIB cooperation ‘win-win’ situation – Nakao

ADB President Takehiko Nakao

ADB President Takehiko Nakao

Bloomberg

ADB-AIIB: Cooperation between the Asian Development Bank (ADB) and the newly-formed Asian Infrastructure Investment Bank (AIIB) will be a “kind of a win-win” for both institutions, ADB President Takehiko Nakao claimed this week.
During meetings (more…)

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Russia to take Ukraine through UK courts over eurobond default

Ukraine PM Arseniy YatsenyukEurobond default: Russia is going to file a lawsuit against Ukraine after Kiev failed to repay its $3bn Eurobond and $75m of interest that fell due yesterday, the Russian finance ministry has announced. Russia has repeatedly said it would regard non-payment of the eurobond – which was issued by the government of former President Viktor Yanukovich in late 2013 and bought by Russia in its entirety – a default that would trigger legal action. “A corresponding lawsuit will be filed in an English court in compliance with the established procedures,” the ministry said on its website.
For his part, Ukraine’s Prime Minister Arseny Yatseniuk had repeatedly said that Ukraine would not repay the Eurobond. His government, which has separately reached an agreement with private creditors to restructure its sovereign and sovereign-guaranteed debt, also insists the Eurobond is commercial debt and that it cannot offer Russia a better deal than other creditors.

Viktor Yanukovich

Viktor Yanukovich

The bond was issued just two months before Yanukovich fled in the face of bloody street protests triggered by his seeking to halt Ukraine’s swing toward European integration in favor of closer economic ties with Russia. A new Free Trade Agreement between Ukraine and Russia comes into force today, a development which has prompted Russia to annul its own FTA with its western neighbour.

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Ukraine set to default on $3bn Russian bond debt as tensions escalate

Ukraine PM Arseniy YatsenyukRussian bond debt: Ukraine has said that it does not intend to repay the $3 billion in bonds it owes Russia and which come due tomorrow, bringing the two countries a step closer to a court battle amid a new wave of economic tension between Kiev and Moscow. The Ukrainian Prime Minister Arseniy Yatsenyuk said that his government was going to (more…)

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Islamic Development Bank invited to invest in TAPI pipeline project

IDB President Ahmed Mohamed Ali Al Madani

IDB President Ahmed Mohamed Ali Al Madani

The Islamic Development Bank (IDB) was this weekend invited to invest in the 1,735km TAPI pipeline project by Turkemenistan’s President Gurbanguly Berdimuhammadov after its own President Ahmad Mohamed Ali Al Madani arrived in Ashgabat for the country’s Neutrality Day celebrations last Saturday,
The TAPI pipeline (more…)

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Rio Tinto and Mongolia set to sign $6bn Oyu Tolgoi financing agreement

Oyu Tolgoi copper and gold mine MongoliaThe Mongolian government and Rio Tinto will officially sign an agreement finalising terms for the financing of the development of the Oyu Tolgoi gold and copper mine on Wednesday December, Prime Minister Chimediin Saikhanbileg said last week. The agreement (more…)

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Putin threatens legal action over $3bn Ukraine debt after IMF softens rules

Putin chairs a meeting of the Security Council in Moscow 4/12/15Ukraine debt: Russian President Vladimir Putin yesterday told his government to take Ukraine to court if it did not repay its $3bn Eurobond while other Prime Minister Dmitry Medvedev criticised the International Monetary Fund for softening its lending rules to help the “crooks” in Kiev.
The Kremlin reacted (more…)

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