EDB co-underwrites KEGOC bond issue totalling KZT 36.3 billion in the trading system of KASE
Almaty, 31 August 2017. KEGOC has placed tenge-denominated 15-year bonds totalling KZT 36.3 billion in the trading system of the Kazakhstan Stock Exchange JSC (KASE). Eurasian Development Bank (EDB) is a co-underwriter of this issue. The final coupon rate is set at 11.5 percent annual.
In accordance with a decision of the KASE Listing Commission of 19 July 2017, this bond issue is listed on the KASE Official List under the Bond category, Debt Securities sector, Main market.
SkyBridge Invest is the underwriter and financial advisor to the deal.
“Participation in this issue is important for Eurasian Development Bank in terms of facilitating the development of Kazakhstan’s financial market. It is also critical for our Bank that the proceeds from the bond issue will be used to finance an infrastructure project promoting the development of Kazakhstan’s economy – the construction of a high-voltage electric transmission line running from Ekibastuz GRES the southern areas of the country,” notes Dmitry Ladikov-Roev, Managing Director for Assets and Liabilities at EDB.
As a result of trading, 24.8% of bonds by volume of mobilisation were bought by second-tier banks, 63.8% – by other institutional investors, 2.7 % – by broker/dealer companies, and 8.7% – by other legal entities, which signals that investors have high confidence in KEGOC’s activities.
The resources mobilised will help the company complete the investment project related to construction of the North-East-South 500 kV high-voltage transmission line, implemented under the New Economic Policy Programme of the Government ‘Nurly-Zhol’ (Road to the Future), in a timely manner. This project aims at enabling an improvement in the North-East-South transit capacity of the National Power Grid (NPG), ensuring reliable electricity supply and covering power shortages in East-Kazakhstan and Almaty regions, strengthening the energy independence of Kazakhstan’s NPG and enabling the development of border areas. The project cost is KZT105.5 billion, and the project period is 2012-2018.
Sholpan Ainabaeva, Chair of the Management Board of Skybridge Invest, says: “The fact that demand has exceeded supply by KZT 20 billion reflects acknowledgement of the high credit quality of the issuer and signals a revival in the market.”
Additional Information:
Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.
KEGOC is a Kazakhstan-based company providing services in power transmission, technical grid output and consumption dispatching, balancing power generation and consumption in Kazakhstan. The company was established in 1997 under the Government initiative to restructure the Kazakhstan power system management.
Skybridge Invest (SBI) is a successful investment company with a significant expertise of working in Kazakhstan’s stock market. SBI offers a wide range of services in asset management, broking, financial consulting and underwriting, and corporate financing. The company has won certain prestigious awards, such as: Best New Capital Markets Consultancy Kazakhstan 2015 (Global Banking and Finance Review Awards 2015) and Best Investment Management Company, Kazakhstan (World Finance Awards 2012).
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