Ownership and funding

The EBRD is owned by its member/shareholder countries, the European Community and the European Investment Bank. The Bank's share capital is provided by its members. Voting power is in proportion to the number of shares.

How the EBRD is funded

With a subscribed capital totalling EUR 20 billion (EUR 5 billion paid-in and EUR 15 billion callable), the EBRD has a solid capital base. The strength of the Bank's capital and its prudent operational and financial policies are reflected in the EBRD's credit rating of AAA from Standard & Poor's, Aaa from Moody's and AAA from Fitch.

How the EBRD finances its loan operations

The EBRD finances project lending and operational needs by borrowing funds on the international capital markets.

The Bank does not directly utilise shareholders' capital to finance its loans. Instead, the AAA/Aaa/AAA ratings enable the Bank to borrow funds in the international markets by issuing bonds and other debt instruments at highly cost-effective market rates. By raising funds on competitive terms, EBRD can structure loans which best match the requirements of its clients in its countries of operations.

The Bank manages its liabilities such that it does not incur significant foreign exchange or interest rate risk in its funding operations. It interacts with major capital market participants on a daily basis in order to ascertain which market, currency or structure of debt can provide the EBRD with the most efficient cost of financing.

EBRD's securities are sold to investors, such as central banks, pension funds, insurance companies and asset managers around the world.

Treasury department

It is EBRD's Treasury department that is responsible for

• funding the Bank in the international capital markets
  
• managing liquid assets held in anticipation of disbursements and overall asset and liability management

The Treasury ensures that the Bank has a stable source of income at all times.