Eurasian Development Bank says it signed framework agreement with AK BARS Bank (Russia) on credit facility to finance trade finance projects

/KASE, October 14, 10/ - Eurasian Development Bank, bonds of which are listed on Kazakhstan Stock Exchange (KASE), provided to KASE the following press-release: quote On Tuesday, October 12 Eurasian Development Bank (EDB) signed a framework agreement with AK BARS Bank under which a revolving credit facility to finance trade finance projects will be provided to the Russian bank. The agreement will be valid for 2 years, the credit facility amounts to USD50 m. Financing will be provided within the credit facility based on separate agreements on providing individual tranches for the term of 3 to 12 months. Deal with AK BARS Bank is a project implemented by EDB as part of its "Program of developing trade finance instruments and expansion of bilateral trade between EDB member-countries". "At EDB there are relevant technologies, project selection criteria, and pricing mechanisms, says D. Krasilnikov. For such projects we choose stable, solid banks. It is important that those banks have live customer projects in trade finance and are eager to actively develop in this direction". AK BARS Bank is an authorized bank of the Government of the Republic of Tatarstan, it has a broad network of branches and a large number of clients. "This agreement with EDB will allow the Russian bank to diversify its funding sources, it will further promote economic integration between EDB member-countries, says D.Krasilnikov, member of the Managing Board, Managing Director for Corporate Finance. - Under the agreement not less than 60 % of the total credit facility (USD30 m) will be spent by the borrower on financing customers' export-import transactions, aimed at expansion of bilateral trade between EDB member-countries". In the nearest future EDB plans to conclude new trade finance deals with other banks from EDB member-countries. unquote [2010-10-14]