The EDB places a new tenge-denominated bond issue
Almaty, 25 February 2019. 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 February, the Bank arranged negotiations and meetings with potential investors in Kazakhstan and, as a result, decided to make its first bond placement this year. The total face value of the issue is KZT 20 billion. The bonds will mature in three years with a coupon of 9.70% per annum. Moody’s rated the bonds at Baa1, which is also the Bank’s current rating. Investors submitted eight bids for a total of KZT 25 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 offering had a minimal spread relative to government securities, which reflects a continued positive trend and a favourable market environment for the placement of financial instruments by reliable issuers.
"The results of our first bond issue in Kazakhstan this year have confirmed again that the country’s stock market can ensure access to the necessary amounts of tenge-denominated resources for companies and institutions having a sufficient credit quality. We would also like to express our gratitude to Kazkommerts Security for their support,” Dmitry Ladikov-Roev, Managing Director for Assets and Liabilities at the EDB, 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.
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)
Kazkommerts Securities:
Investment Banking
Ainura Jumadilova
+7 (727) 244 65 05 (ext. 2)