Eurasian Development Bank Drives Regional Development through Finance and Innovation

The Eurasian Development Bank is a key player in driving regional development through finance and innovation. The bank has been operational since 2006 and is headquartered in Almaty, Kazakhstan.

The bank's commitment to regional development is evident in its membership, which includes 6 countries: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. These countries share a common goal of promoting economic growth and cooperation in the Eurasian region.

The bank's focus on innovation is reflected in its support for projects that leverage technology and digital solutions to address regional development challenges.

The Eurasian Development Bank has a unique membership structure. Currently, the bank consists of 6 countries: Russia, Kazakhstan, Belarus, Tajikistan, Kyrgyzstan, and Armenia.

These countries have a significant stake in the bank, with Russia holding a 44.78% share of the paid-up capital, followed by Kazakhstan with 37.28%. Other countries and international organizations can join the bank by acceding to the Agreement Establishing the Bank.

The bank is also open to expansion, with several countries expressing interest in joining. As of now, 12 countries have expressed their intention to join, including Azerbaijan, Egypt, India, and others.

Here's a list of the current major shareholders:

Hungary has also expressed interest in joining the bank, aiming to become a full member by 2020.

The membership of the Bank is a significant aspect of its operations. The Bank currently has 6 member countries.

These countries have a significant stake in the Bank's activities, with Russia holding the largest share of 44.78% of the paid-up capital as of January 2023. Kazakhstan follows closely with a share of 37.28%.

The other member countries, Belarus, Tajikistan, Kyrgyzstan, and Armenia, also have a notable presence with shares of 5.21%, 4.25%, 4.22%, and 4.22% respectively.

Here's a breakdown of the major shareholders in the Bank:

Other states and international organisations can become members by acceding to the Agreement Establishing the Bank.

The Eurasian Development Bank (EDB) has a clear path for expansion, with several countries expressing interest in joining. Currently, the EDB has 6 member countries.

Russia is the largest shareholder, holding 44.78% of the paid-up capital, followed closely by Kazakhstan with 37.28%. Other major shareholders include Belarus, Tajikistan, Kyrgyzstan, and Armenia.

Several countries have confirmed their intention to join the EDB, including Moldova, which expressed its interest in November 2019. Hungary has also expressed its interest, aiming for full membership by 2020.

A total of 12 countries are currently expressing interest in joining the EDB, including Azerbaijan, Egypt, Israel, India, Indonesia, Iran, Japan, Mongolia, Singapore, Thailand, the Republic of Korea, and Vietnam.

Here are the countries that have confirmed their interest in joining the EDB:

The Eurasian Development Bank (EDB) has a clear mission to promote market economies and economic growth in its member states. It aims to help expand trade and other economic ties between them through investment.

The EDB's Strategy for 2022–2026 sets out its development objectives, which include strengthening its unique integration role in the EAEU+. This involves a total investment of US$10.9 billion.

The EDB plans to implement integration mega-projects in various sectors, including transport infrastructure and logistics, food security, water, and energy. These projects include the Eurasian Transport Corridor, the Eurasian Commodity Distribution System, and the Central Asian Water and Energy Complex.

The EDB also focuses on developing its digital projects, supporting the digital agendas of its member countries to promote their digital transformation. This will help them stay competitive in the global market.

The EDB aims to promote the UN Sustainable Development Goals and ESG approaches in its corporate governance. It also plans to increase financing for its green and social projects.

Here is a breakdown of the EDB's development objectives:

The EDB has developed five-year strategies for each of its member states, tailored to their economic and investment profiles. In Armenia, Kyrgyzstan, and Tajikistan, the Bank's investment is expected to reach US$500 million by 2026.

The Eurasian Development Bank (EDB) is a key player in international cooperation, working with a wide range of organizations to support its activities.

The EDB has held observer statuses at several significant international bodies, including the United Nations General Assembly since 2007 and the Eurasian Group on Combating Money Laundering and Financing of Terrorism since 2008.

It also participates in the Multilateral Financial Institutions’ Working Group on Environmental and Social Standards, which it joined in 2012.

The EDB is a member of several important associations, including the Kazakhstan Stock Exchange, the International Capital Market Association, and the International Swaps and Derivatives Association.

Here are some of the key international organizations and associations that the EDB cooperates with:

The Eurasian Development Bank is a key player in promoting economic growth and development in the Eurasian region. Its activities focus on financing investment projects that improve living standards and develop the business environment.

The Bank lends to state or private enterprises, public-private partnerships, and provides financing to commercial banks for corporate on-lending. This support helps to develop the region's infrastructure, including transport, energy, and digital systems.

One notable project is the reconstruction of the Almaty Airport terminal in Kazakhstan, which has improved the region's connectivity. The Bank has also invested in the construction of the Big Almaty Ring Road and the Saryarka gas pipeline in Kazakhstan.

The Eurasian Development Bank's portfolio is diverse, with a focus on transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. Some of its notable projects include the construction of the Azov Wind Farm in Russia and the Polotsk Hydropower Plant on the Western Dvina River in Belarus.

The Bank's Fund for Digital Initiatives was established in 2020 to support digital transformation in the EDB member states. The fund provides project financing and grants for digital projects in various sectors, including healthcare, trade, and education.

The first project implemented by the Fund for Digital Initiatives was the COVID-19-Free Travel mobile app, which allows for the free and safe movement of people among countries during the coronavirus pandemic.

Here are some of the Eurasian Development Bank's notable projects:

The Eurasian Development Bank has a significant financial presence, with a charter capital of US$7 billion. This includes US$1.5 billion of paid-in capital and US$5.5 billion of callable capital.

The bank's investment portfolio is substantial, with a current total of US$3.902 billion as of 1 March 2022. This is part of a larger cumulative investment portfolio of US$10.448 billion, which includes completed projects.

The bank is actively financing projects, with a total of 84 projects currently being financed.

The Eurasian Development Bank's Fund for Digital Initiatives was established on 30 June 2020.

The fund's primary aim is to support digital transformation in the EDB member states, providing project financing and grants to various sectors.

Digital projects in healthcare, trade, public governance, culture, tourism, sports, education, environmental protection, energy, data protection, transport, logistics, manufacturing, agriculture, the labour market, migration, financial technology, and smart cities are all supported by the fund.

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The first project implemented by the Fund for Digital Initiatives was the COVID-19-Free Travel mobile app.

The app allows for the free and safe movement of people among countries during the coronavirus pandemic by enabling the retrieval, storage, and display of PCR test results and vaccination records.

The fund's focus on digital transformation and the support of various sectors demonstrates its commitment to modernizing and improving the EDB member states' economies and societies.

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Mobilising finance is a crucial aspect of the Eurasian Development Bank's (EDB) operations. The EDB works actively with financial institutions to mobilise long-term resources in the capital markets, which are the main source of funding for the Bank's investment activities.

The EDB has a range of sources for market financing, including Eurobonds issued under the EMTN programme, bonds issued in local markets, securities issued under the ECP programme, and bilateral bank loans.

One of the key benefits of the EDB's mobilisation of finance is its ability to support large-scale investment projects. For example, in Kazakhstan, the EDB has financed investment projects worth $900 million since the beginning of the year, with plans to increase investment volumes to $1.4-$1.6 billion by the end of the year.

The EDB's investment portfolio is diverse, with a focus on key sectors such as energy, transport, and mining. As of 1 March 2022, the current investment portfolio totalled $3.902 billion, with a cumulative investment portfolio of $10.448 billion including completed projects.

The EDB's mobilisation of finance is supported by its strong financial position, with a charter capital of $7 billion, including $1.5 billion of paid-in capital and $5.5 billion of callable capital.

Here are the sources of market financing used by the EDB:

The Eurasian Development Bank (EDB) has made significant strides in environmental and social responsibility. In 2012, the Bank's management board approved an Environmental and Social Responsibility Framework to reduce the negative environmental impacts of EDB-funded projects.

The Bank's investment projects focus on environmental protection, socio-economic development, and the efficient use of natural resources. This framework is aimed at promoting sustainable development and minimizing the Bank's ecological footprint.

Between 2017 and 2020, the EDB financed renewable energy projects with a total installed capacity of about 500 MW, totaling more than US$540 million. This commitment to renewable energy has helped reduce the region's reliance on fossil fuels and decrease carbon emissions.

In 2020, the Bank became a shareholder of the AIFC Green Finance Centre, established to develop and promote green finance in Kazakhstan and Central Asia. The Centre assists potential issuers, investors, and market players in preparing for the issuance of green bonds on the AIFC Exchange.

The EDB has also prioritized environmental projects, primarily in the electricity and renewable energy sectors. This strategic focus has enabled the Bank to make a significant impact in reducing the region's carbon footprint.

In 2021, the EDB published its Green and Social Debt Instruments Framework, outlining the Bank's approach to green and social finance. This framework provides a clear guide for investors and issuers on the Bank's green and social financing principles.

The EDB's commitment to environmental and social responsibility is evident in its projects, such as the Azov wind farm, the first one in the Unified Energy System of Russia to remotely control the flows of both active and reactive power generated by the facility.

The Eurasian Development Bank (EDB) has a well-defined management structure. The Bank's Council is its supreme management body, responsible for the general management of its operations.

Each member state appoints an authorised representative and their deputy to the Council, making it a collaborative effort among member states.

The Council governs the Bank's Management Board, a permanent collective executive body.

The Chairman of the EDB Management Board is Nikolai Podguzov, who plays a crucial role in leading the bank's executive team.

Here's a breakdown of the Bank's management structure:

The Council's decisions are instrumental in shaping the Bank's policies and direction, and the Management Board works tirelessly to implement them.

The Eurasian Development Bank (EDB) has been actively investing in Kazakhstan's economy, with a significant focus on infrastructure projects. They've already invested $900 million since January and aim to increase this to $1.4-$1.6 billion by the end of the year.

The EDB's priority projects in Kazakhstan include implementing cyclic-flow coal mining technology, constructing solar power plants, and expanding the Astrakhan-Mangyshlak main water pipeline. These projects are crucial for modernizing and constructing engineering, transport, social, and digital infrastructure in the country.

The bank's current investment portfolio is diversified across various industries, with a significant focus on energy (21.7%), transport (18.1%), and mining (27.5%).

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The Eurasian Development Bank's Fund for Digital Initiatives was established on 30 June 2020 to support digital transformation in its member states.

The fund provides project financing and grants to support digital projects in various sectors, including healthcare, trade, public governance, culture, tourism, sports, education, environmental protection, energy, data protection, transport, logistics, manufacturing, agriculture, the labour market and migration, as well as financial technology and smart cities.

The fund's first project was the COVID-19-Free Travel mobile app, which allowed for the free and safe movement of people among countries during the coronavirus pandemic.

This app made it possible to retrieve, store and display PCR test results and vaccination records, providing a crucial service during a time of great need.

The Fund for Digital Initiatives has a broad scope, supporting digital projects in nearly every aspect of life, from healthcare to financial technology.

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The Eurasian Development Bank (EDB) has been a significant investor in Kazakhstan's economy, particularly in the energy and infrastructure sectors. They have financed investment projects worth $900 million in Kazakhstan since the beginning of the year.

The EDB plans to increase its investment volumes in Kazakhstan to $1.4-$1.6 billion by the end of the year. This shows a significant growth in their investment activity in the country.

The bank's priority projects in Kazakhstan include the implementation of cyclic-flow coal mining technology, the construction of solar power plants, and the reconstruction and expansion of the Astrakhan-Mangyshlak main water pipeline. These projects aim to modernize and develop the country's infrastructure.

The EDB's investment portfolio in Kazakhstan is diversified across various sectors, including energy, transport, mining, and infrastructure. The breakdown of the industry structure of the current investment portfolio is as follows: