EDB Raises AED 200 Million in UAE to Fund Central Asian Development Projects, DKnews.kz reports.
Abu Dhabi, June 3, 2025. The Eurasian Development Bank (EDB) has made a bold entry into the Gulf capital markets by successfully completing its first private placement of bonds denominated in UAE dirhams (AED). The transaction — worth AED 200 million (approximately USD 54 million) — was arranged in partnership with the First Abu Dhabi Bank (FAB) and the Abu Dhabi Fund for Development (ADFD).
This debut issuance marks an important step in the EDB’s strategy to diversify its funding sources and expand financial cooperation between Central Asia and the Middle East. The raised funds will be directed toward infrastructure and industrial projects in EDB member states, contributing to regional economic growth, integration, and resilience.
A financial bridge between Central Asia and the Gulf
This isn’t EDB’s first foray into dirham-based instruments. In April 2025, the bank successfully placed its inaugural AED-denominated bonds on the Astana International Exchange (AIX) in Kazakhstan — becoming the first supranational issuer to launch public debt in UAE dirhams.
With this latest placement in the UAE capital market, EDB is scaling up its efforts to enhance cross-border financing using national currencies and deepen cooperation with Gulf financial institutions.
“We are building long-term partnerships between Central Asia and the Middle East”
Daniyar Imangaliyev, Deputy Chairman of the Management Board of EDB, emphasized the strategic value of the placement:
“Raising funds in dirhams in the UAE capital market is a consistent step in EDB’s efforts to diversify its funding sources for more effective investments in sustainable development projects in member countries, especially following the recent bond issuance in dirhams on the Astana International Exchange in Kazakhstan.
By building strong and mutually beneficial relationships with local investors in the UAE’s rapidly developing financial market, we not only diversify our sources of financing, but also strengthen economic cooperation between Central Asia and the Middle East. This transaction perfectly aligns with our mission to support investments that contribute to the prosperity of Eurasia.”
Abu Dhabi sees potential in Central Asia’s future
His Excellency Mohammed Saif Al Suwaidi, Director General of the ADFD, highlighted the strategic dimension of the partnership:
“Strategic cooperation with the Eurasian Development Bank and First Abu Dhabi Bank confirms ADFD’s readiness to strengthen global development partnerships and leverage the UAE’s financial ecosystem to support sustainable growth beyond our borders.
Through this inaugural dirham-denominated bond issuance, we aim to support high-impact investments in Central Asia that align with our mission of promoting economic progress, enhancing resilience, and deepening regional integration through innovative development financing.”
FAB: Setting a new benchmark for regional capital markets
The deal was arranged exclusively by First Abu Dhabi Bank (FAB), which sees the issuance as a pivotal moment for the broader region.
Linos Lekkas, Head of Global Investment Banking and Markets at FAB, noted:
“FAB’s exclusive mandate to arrange the private placement of EDB’s AED-denominated bonds is a milestone for regional capital markets. This AED 200 million transaction, organized in partnership with the Abu Dhabi Fund for Development, strengthens our relationship with the EDB and demonstrates our commitment to delivering innovative financial solutions across the region.
It is the first dirham-denominated issuance by a supranational entity conducted within the UAE — setting a new standard for regional capital markets and supporting high-impact development across Central Asia.”
About the institutions involved
Eurasian Development Bank (EDB) is a multilateral development bank that finances large-scale integration-driven projects across Eurasia. Since its founding, the Bank has invested in over 305 projects totaling USD 16.5 billion, with a strong focus on transport infrastructure, green energy, digital systems, agriculture, and industry. EDB aligns its work with the UN Sustainable Development Goals (SDGs) and ESG principles. Its 2022–2026 Strategy includes three flagship megaprojects:
- Central Asia Water and Energy Complex
- Eurasian Transport Framework
- Eurasian Commodity Distribution System
Abu Dhabi Fund for Development (ADFD) was established in 1971 and plays a central role in supporting the economic and social development of emerging economies. ADFD has financed projects in more than 100 countries, across sectors such as energy, infrastructure, water, healthcare, and education — with a strong emphasis on sustainability, innovation, and inclusive growth.
First Abu Dhabi Bank (FAB) is the UAE’s largest financial institution, with assets totaling AED 1.31 trillion (USD 356 billion) and operations in 20 markets worldwide. FAB provides services in investment banking, corporate banking, and personal banking, and is listed on the Abu Dhabi Securities Exchange (ADX). The bank holds Aa3 (Moody’s), AA- (S&P), and AA- (Fitch) ratings with a stable outlook, and has a top-tier ESG profile (MSCI AA, Sustainalytics ESG Risk Rating leader).
Why this matters
This bond issuance is more than a financial transaction. It’s a strategic move that helps cement long-term economic ties between Central Asia and the Gulf. By tapping into dirham markets, EDB is not only expanding its funding toolkit but also redefining how development financing can bridge regions, currencies, and continents — all in support of sustainable growth.
