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FINANCIAL PERFORMANCEJune 30, 2012

дата проведения

OVER THE FIRST HALF OF 2012

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EDB: An Overview

Eurasian Development Bank (EDB) was established in 2006 by the Russian Federation and the Republic of Kazakhstan;

EDB operates on a territory totalling 20 million km2 with a population of 185 million people;

EDB has six Member States: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan;

EDB’s authorised capital is over US$ 1.5 billion;

EDB manages the resources of the EurAsEC Anti-Crisis Fund;

EDB has 284 employees.

RATINGS: Long-term foreign currency Short-term foreign currency Outlook Fitch Ratings BBB F-2 Positive Moody’s A3 P-2 Stable Standard&Poor’s BBB A-3 Stable

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Key Financial Indicators as of 30/06/2012: Assets

EDB’s assets have increased by 12% (by US$ 332.5 million) and reached US$ 3,170.2 million as compared to the end of 2011;

Loans to clients amounted to US$ 1,397.3 million, which is 4% (US$ 53.3 million) the level of end-2011;

Over the first half of 2012, EDB ‘s net profit amounted to US$ 9.4 million;

EDB’s aggregate income has increased by 16% compared to the same period of 2011, and stood at US$ 15.7 million.

Securities and investments

33%

Loans and funds in banks

21%

Loans to clients44%

Other assets2%

EDB Assets

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Key Financial Indicators as of 30/06/2012: Liabilities and Capital

EDB’s liabilities amounted toUS$ 1,474.4 million, which is 27% (US$316.7 million) above the level of end-2011;

Stock of issued debt securities amounted to US$ 1,353.7 million;

EDB’s capital reached US$ 1,695.7 million, having increased by 1% (US$15.7 million) compared to end-2011.

Issued debt securities

43%

Loans and other bank`s funds2%

Capital53%

Other liabilities2%

EDB`s Liabilities and Capital

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Investment into Member-States’ Economies Have Increased by UD$ 0.5 billion

Over the first half of 2012, the investment portfolio increased by 14.4% as compared to 2011, accounting for US$ 3.912 billion.

Bank’s investment portfolio includes 60 projects in 5 EDB member-countries.

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EDB’s Investment Portfolio, US$ million

�⃰ Investment portfolio is one of the key indicators of the Bank’s performance, aggregate of all financial instruments under the projects approved since the start of the Bank’s operation.

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Share of the Bank’s Projects in the Russia Has Grown

Share of the Bank-financed projects in Russia increased by 7% over the first half of the year. The following new projects have been added to the Bank’s portfolio:

• Development and operation of the “Western High-Speed Diameter“ in St. Petersburg;

• Construction of a new unit at the Abakan combined heat and power (CHP) plant;

• Development of the freight traffic market—”RAIL 1520” loan to buy freight cars.

Belarus11%

Armenia 2%

Tajikistan1%

Kazakhstan36%Russia

47%

Other 3%

Current Investment Portfolio by Country

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Energy and Transportation Projects retain the Largest Shares in EDB’s Investment Portfolio

Many EDB-financed projects are in the energy and transportation sectors, which is consistent with EDB’s strategy. Over the first half of 2012, there were no significant changes in the portfolio composition by sector.

Financial sector includes:  Direct investments funds (DIF) 17%Trade finance 28%Direct lending to small and medium business 31%Microcredit 1,7%Syndicated loans and bonds 15,5%Other 6,8%

Power indus-try and in-

frastructure20%

Transport and transport in-frastructure

32%

Municipal and other in-frastructure

1%

Mining and processing industries

6%

Agro-indus-trial complex

12%

Metallurgy4%

Other process-ing industry

5%

Chemicals and mineral fertil-

izer7%

Financial sec-tor

15%

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Development of Integration Indicators over the First Half of the Year Remained Positive

EDB’s projects generate significant integration effects. According to the assessment of EDB’s experts based on the analysis of the projects’ business plans and financial models, as well as situation in the commodity markets, EDB’s investment portfolio as of 30/06/2012 could generate mutual trade flows amounting to US$ 1.151 billion per year, which is 4% above the level of end-2011;

Mutual investment generated through the Bank’s projects grew by US$ 1.185 billion, which is 4% above the level of end-2011. 31.12.2009 31.12.2010 31.12.2011 30.06.2012 .

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865

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Development of Integration In-dicators

Growth of mutual trade, US$ millionGrowth of mutual investment, US$ million2

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EDB Projects Generate Significant Socio-Economic Effects

• Projects implemented with EDB’s participation as of 30/06/2012 could generate in the economies of EDB Member States output of about US$ 3,122 billion per year on average;

• In the long run, EDB’s projects (while being actually operated) can generate US$3.797 billion of additional output in the economies of EDB member states.

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1949

3017 3122

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2272

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Socio-Economic Effects of EDB Projects

Increase in output per year, US$ millionMultiplication effect, US$ million

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11 New Projects over the First Half of 2012

Highlights:

• EDB invested 10 billion Russian rubles into the PPP project of developing and operating the “Western High-Speed Diameter“automobile road in St. Petersburg;

• An additional 3.1 billion Kazakhstan tenge credit line approved by EDB for the Kazakhstani Joint stock company (JSC) “Batys Transit” in the framework of the “Construction of North Kazakhstan-Aktyubinsk Oblast Interregional Power Transmission Line” project;

• EDB’s financing of the “RAIL 1520” Ltd. freight traffic development amounting to US$ 75 million (with 10-year maturity);

• A credit line of US$ 10 million for “Areximbank-Gasprombank Group” to finance small and medium-sized businesses (SMB) in Armenia.

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Analytical Work and Research

Over the first half of 2012:

• Results of “Comprehensive Assessment of the Macroeconomic Effects of Various Forms of the Deep Economic Integration of Ukraine with Member States of the Customs Union and the Common Economic Space within the EurAsEC” is published;

• The Centre for Integration Studies presented research project «Assessment of the Economic Effect and Legal/Institutional Consequences of the Common Economic Space Agreements in the Area of Labour Migration»;

• At the request of the Ministry of Finance of Kazakhstan, a research paper on “The Risks for Public Finance of the CIS Member-States in the Context of the Current Global Instability” was prepared and presented to the meeting of the Council of Finance Ministries of the CIS States in Astana;

• EDB’s Analytical Department issued a monograph on “Investment Priorities of Cooperation in the Transboundary River Basins of Central Asia”;

• The 15th issue of the Eurasian Economic Integration quarterly research journal was published;

• CIS Macromonitor, issues No.4 and No.5 was published. On a regular basis, it reviews and discusses tendencies and problems, also providing economic development forecasts for the CIS countries.

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International Cooperation

In May, in the framework of the EBRD Annual Meetings in London, EDB was one of the co-organisers of the session “Russia, Kazakhstan, and Belarus: New Investment Opportunities of the Common Economic Space (CES)”. Representatives of the CES, ministries of finance of the Customs Union (CU) member-states, large international companies participated in the session;

EDB’s representatives participated in the regular meeting of the Council of Finance Ministries of the Commonwealth of Independent States (CIS) member countries held in Astana in May;

EDB continued its dialogue with the IMF, including discussions on reforming the international financial architecture. The two institutions met to review these issues during the IMF-IBRD Spring Meetings;

In June, the EDB’s representatives participated in the Russian delegation in the meeting of the SCO Interbank Association Council in Beijing.

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The EurAsEC Anti-Crisis Fund Continued its Operations over the First Half of 2012

• The third tranche of the financial loan of the EurAsEC Anti-Crisis Fund (ACF) in the amount of US$ 440 million was disbursed to the Republic of Belarus. This disbursement was approved by the Council of the Fund on 8 June. The financial (stabilisation) loan of US$ 3 billion to the Republic of Belarus was approved by the ACF Council on 4 June 2011. In June and December 2011, the EDB, being the ACF Resource Manager, disbursed to Belarus two tranches of the loan amounting to US$ 800 million and US$ 440 million, respectively.

• In Dushanbe, EDB’s experts performed the concluding review of the reform program supported by the ACF financial loan of US$ 70 million. Its results will be presented in the autumn this year.