The EDB offers a new tenge-denominated bond issue underwritten by Kazkommerts Securities at KASE

07 November 2018

Almaty, 7 November 2018. The Eurasian Development Bank (EDB) made another offering of its tenge-denominated bonds at Kazakhstan Stock Exchange (KASE) for a total of KZT 20 billion.

In October, the Bank arranged meetings with potential investors in Kazakhstan and, as a result, decided to make its third bond placement this year. The total face value of the issue is KZT 20 billion. The bonds will mature in four years with a coupon of 9.7% per annum. Moody’s rated the bonds at Baa1, which is also the Bank’s current international credit rating. Investors submitted four bids for a total of KZT 20 billion. Kazkommerts Securities was the financial advisor and underwriter for the issue.

This offering has confirmed stable interest in the Bank’s bonds on the part of Kazakhstan’s investors, as well as the possibility to place them in the market despite the persisting volatilities. The issue has a minimal spread on government securities, which reflects a positive trend and market environment for the placement of financial instruments by reliable issuers.

“We are pleased to see investors’ steady and significant interest in the EDB’s bonds despite the current market volatilities. It is very important that our Bank has access to tenge-denominated resources to finance our project activities. We would also like to express our gratitude to Kazkommerts Securities for their support,” Dmitry Ladikov-Roev, Managing Director for Assets and Liabilities at the EDB, said.

“The Eurasian Development Bank has made another successful offering of its bonds at KASE. From the beginning of the year, the issuer placed bonds for a total of approximately KZT 90 billion in the domestic securities market. Given the persisting volatility of the tenge and the relatively high yield on instruments denominated in foreign currencies, this confirms significant demand for the bonds of high-class issuers such as the Eurasian Development Bank, and those with the minimal spread on government securities,” Timur Salimov, Managing Director and Board Member at Kazkommerts Securities, commented.

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.

Read more about the EDB at http://eabr.org/ 

Kazkommerts Securities is one of the leading investment banks in Kazakhstan offering all types of investment and banking services, including brokerage, trade in securities, financial advice and underwriting (the arrangement of the issue and placement of debt and equity securities), corporate finance, investment portfolio management, and 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)                    

pressa@eabr.org

Kazkommerts Securities:

Investment Banking

Indira Alkenova +7 (727) 244 65 05 (ext. 58025)

ialkenova@kazks.kz

ib@kazks.kz

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