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EBRD

SOFIA: The European Bank for Reconstruction and Development will make a debt issue in a Latin American currency within a few weeks and an East European issue in three to six months, head of treasury Mark Cutis said.

"We will make an announcement on a Latin issue in a few weeks, Cutis told a banking symposium at the EBRD's annual meeting.

The EBRD's long-term borrowing requirements for this year are 1.5 billion Ecu, of which 400 million remains to be done.

Cutis said the EBRD's borrowing programme "pushes us into Latin America, Eastern Europe and ultimately into Asia."

"The bank is currently exploring several eastern European markets and we will make an announcement in three to six months," Cutis added.

Bart le Blanc, the Bank's Vice President, said the EBRD had a role to develop capital markets in Eastern Europe through bond issuance.

"The EBRD is issuing in these markets as an AAA rated borrower and is helping develop them. It is more than just a capital raising role," he said.

In 1995 71 percent of the bank's debt issues were yen denominated but the figure has fallen to 44 percent in the first quarter following a 1.5 billion mark issue in January.

The bank is also looking closely at the maturity profile of its debt. "We are trying to borrow as long as possible. If it were possible we would like to borrow on 20-30 years. Anything beyond five years is of interest to us," said Markus Fedder, who is Cutis's deputy.

The EBRD specifically ruled out changing its one-to-one gearing ratio as a means of enhancing its capital base, which governors agreed to double to 20 billion Ecu yesterday.

"Because of the risky nature of the countries in which we invest we will not increase gearing," le Blanc said.-Reuter