Eurasian Integration Yearbook 2012

2011: Data and ReviewsThe EBRD and ADB signed a memorandum of understanding to strengthenand deepen cooperation in the organisations’ common countries of operation:Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyz Republic, Mongolia,Tajikistan, Turkmenistan and Uzbekistan.The IsDB and ADB signed a framework co-financing agreement for a total of$6 billion to jointly support projects in such areas as agriculture, food security,rural development, human development, education and health, private sectordevelopment and credit insurance.IFC and the EIB signed an agreement to strengthen their collaboration whenfinancing private sector development projects in emerging markets. Greatercooperation will directly benefit public-private partnerships and project financeoperations. Areas of cooperation and coordination include the execution ofmandate agreements, the appraisal and due diligence process, monitoringvisits, and the handling of client requests.On November 25, 2011 Baku hosted a forum that brought together ministersand senior representatives of development agencies to discuss support for thenew 10-year strategy for the Central Asia Regional Economic Cooperation(CAREC) Programme. Established in 2001, CAREC brings together Afghanistan,Azerbaijan, the People’s Republic of China, Kazakhstan, Kyrgyzstan,Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan. It promotesthe implementation of regional projects in energy, transport and trade. Sixmultilateral institutions support the work of CAREC: ADB, EBRD, IMF, IsDB,United Nations Development Programme, and World Bank. Since 2001,CAREC-related investments have totalled $17 billion in over 100 projects inenergy, trade and transportation.Securities offeringsThe debt securities markets offered favourable market conditions for the MDBsin 2011, allowing some banks to raise additional funding.The ADB placed a $2.75 billion five-year global benchmark bond issue. Thebonds, with a coupon rate of 2.50% per annum payable semi-annually and amaturity date of March 15, 2016, were priced at 99.603% to yield 24.65 basispoints over the 2% US Treasury notes due January 2016. By investor types,52% of the bonds went to central bank and government institutions, 28% tobanks, 16% to fund managers and 4% to others.EDB accessed the securities market several times throughout the year. In February2011, the bank placed its fourth issue of 7-year bonds with a six-month couponfor a total of 5 billion roubles. In accordance with the terms of this issuance, thebonds may be redeemed in three years. The 1-6 coupon rate was set at 7.70%per annum. In May 2011, the Bank issued $25 million (maturity of 184 days)320 EDB Eurasian Integration Yearbook 2012