Eurasian Development Bank Secures Funding in United Arab Emirates for Enhanced Investment in Central Asia
The Eurasian Development Bank (EDB) has successfully completed a private placement of bonds worth 200 million UAE dirhams (approximately USD 54 million) in the UAE capital market. This marks the bank’s first-ever AED-denominated private bond placement and further diversifies its funding sources.
The transaction, arranged in partnership with the First Abu Dhabi Bank (FAB) and the Abu Dhabi Fund for Development (ADFD), follows the EDB's successful debut placement of dirham-denominated bonds on Kazakhstan's Astana International Exchange (AIX) in April 2025, making it the first supranational entity to issue UAE dirham-denominated bonds.
The funds raised through the private placement will be directed towards infrastructure and industrial projects across EDB member states in Central Asia. These projects include investments in transport infrastructure, green energy, agriculture, manufacturing, and mechanical engineering, which are part of EDB's broader portfolio, totalling 305 projects valued at approximately USD 16.5 billion as of 2025.
The initiative seeks to foster regional economic growth, integration, and resilience by supporting sustainable development in line with UN Sustainable Development Goals and ESG principles. It also promotes the use of local currency (AED) in cross-border transactions, strengthening financial ties and cooperation between Central Asia and the Gulf region.
The EDB views targeted infrastructure investments as essential for fostering economic stability, connectivity, and shared prosperity in Eurasia. By backing the EDB's debut bond issuance in UAE dirhams, ADFD aims to facilitate impactful investment projects across Central Asia.
The transaction underscores FAB's commitment to supporting transformational development in Central Asia. Linos Lekkas, the EDB's head of Investment Banking and Markets at FAB, described the transaction as a breakthrough for regional capital markets.
In summary, the 200 million AED private bond placement by EDB is a strategic financial move to enhance infrastructure and industrial development in Central Asia, build regional economic resilience, and deepen financial cooperation between Central Asia and the UAE/Gulf markets. The transaction sets a new benchmark for innovative financial solutions in the region, aligning with the Abu Dhabi Fund for Development's mission to support sustainable economic development in emerging regions.
- The EDB, recognizing the importance of investing in personal-finance and wealth-management, will utilize the funds from the private placement for infrastructure and industrial projects, including transport infrastructure, green energy, agriculture, manufacturing, and mechanical engineering – all sectors that contribute to a strong business portfolio.
- The data-and-cloud-computing industry may see growth as these projects have the potential to adopt advanced technologies, enhancing regional economic development and integration.
- For individuals seeking career-development opportunities, this venture offers prospects in education-and-self-development as it promotes the use of local currency in cross-border transactions, fostering a deeper understanding of the financial landscape within Central Asia and the Gulf region.
- The successful bond placement sets a precedent for future financial innovations, showcasing the EDB's finance and technology acumen, and further diversifying funding sources for the bank.
- As the first supranational entity to issue UAE dirham-denominated bonds, the EDB's strategic move is expected to create wealth-management opportunities for institutions and investors alike by demonstrating the bank's commitment to sustainable economic development in emerging regions.
