The EDB and Halyk Finance announce a successful bond placement for a total of KZT 40 billion
Almaty, 28 August 2020. The Eurasian Development Bank (EDB) has successfully offered on the Kazakhstan Stock Exchange (KASE) the first issue of two-year KZT-denominated bonds with a nominal volume of KZT 40 billion that are part of its third bond programme. The underwriter and broker for the issue was Halyk Finance.
This is the EDB’s first offering on Kazakhstan’s market this year and it has confirmed that investors in Kazakhstan continue to be interested in EDB bonds.
A wide range of Kazakhstan’s investors expressed interest in the issue. A total of 18 orders were placed on KASE. The market demand from eleven investors totalled KZT 61.2 billion, exceeding the supply by 1.5 times. The subject of trading was the coupon rate, which was finally set at 11 per cent per annum. Second-tier banks accounted for 48.2 per cent of all the orders submitted, the Unified Accumulative Pension Fund 32.7 per cent, and broker/dealer organisations and their clients, including insurance companies, 19.1 per cent.
“The Bank has managed to offer bonds with a minimum premium to Kazakhstan’s government securities’ curve despite the current volatility in external markets. The EDB plans to use the funds raised from the issue to increase the percentage of Bank-financed projects in the country. There are a number of projects that are being worked on and financed, including major public-private partnership infrastructure projects,” said Nikolai Podguzov, Chairman of the EDB Management Board.
“We were delighted to work on this long-awaited issue by such a high-quality issuer whose bonds have generated significant interest from a wide range of investors. In addition to setting a new benchmark for the subsequent offerings of KZT-denominated corporate bonds on KASE, this offering has also confirmed that investors in Kazakhstan continue to be interested in the debt instruments denominated in the national currency. We are especially pleased to know that Halyk Finance has once again acted as an underwriter in yet another offering that invigorated the market and strengthened our leading position among the arrangers of Kazakhstani issuers’ bond issues,” commented Talgat Ayupov, Chairman of the Management Board of Halyk Finance.
Additional Information:
The 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. The 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.
Halyk Finance is Kazakhstan’s leading investment bank providing a full range of investment and banking services, including financial consulting and underwriting (arranging the issues and initial offerings of corporate issuers’ securities), corporate finance (including consultancy on share/participatory interest purchases and sale, and corporate debt restructuring), brokerage and trade in securities, market making, investment portfolio management, and regular research.
The EDB Media Centre:
Alexander Savelyev +7 (985) 765 23 59 (Moscow)
Azima Sapargaliyeva +7 (777) 750 00 08 (Almaty)
Sergey Gorbachev +7 (916) 727 22 00 (Moscow)
Halyk Finance:
Capital Market Division
Financial Consulting and Underwriting Department
Halyk Finance
Tel.: +7 (727) 357 31 77