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Demand from Kazakh investors for EDB bonds remained

28.08.2020 161 просмотров

The Eurasian Development Bank and Halyk Finance placed bonds for 40 billion tenge.


The Eurasian Development Bank (EDB) has successfully placed tenge bonds of the 1st issue on the Kazakhstan Stock Exchange (KASE) within the framework of the 3rd bond program in the nominal volume of 40 billion tenge and a maturity of 2 years. JSC Halyk Finance acted as the underwriter and broker accompanying the EDB during the bond placement process.

This is the first EDB placement on the Kazakh market this year. The results of the placement testify to the continued demand on the part of Kazakh investors for EDB bonds.

A wide range of Kazakh investors showed interest in the placement. A total of 18 bids were submitted during the trades on KASE. The total aggregate market demand from 11 investors amounted to 61.2 billion tenge and exceeded supply by 1.5 times. The subject of the trade was the coupon interest rate, which, according to the results of the trades, amounted to 11% per annum. In the total volume of bids received during the auction, the share of second-tier banks amounted to 48.2%, JSC Unified Accumulative Pension Fund - 32.7%, broker-dealer organizations and their clients, including insurance companies - 19.1%.
< br> “The Bank managed to place bonds with a minimum premium to the government securities curve of the Republic of Kazakhstan, despite the observed volatility in foreign markets. The EDB plans to use the funds raised to increase the share of projects financed by the Bank in the country. Currently, a number of projects are at the stage of development and financing, among which there are large infrastructure projects based on the mechanism of public-private partnership,” said the Chairman of the EDB Board Nikolai Podguzov.

We are pleased to accompany this long-awaited issue of such a high-quality issuer, whose bonds have aroused high interest from a wide range of investors. This placement not only established a new benchmark for subsequent placements of corporate tenge bonds on KASE, but also indicates the continued interest of Kazakhstani investors in debt instruments in national currency. We are especially pleased to know that Halyk Finance has once again acted as an underwriter in yet another market revitalizing placement and strengthened our leading position in the ranking of organizers of market issues of bonds of Kazakhstani issuers,” said Talgat Ayupov, Chairman of the Board of Halyk Finance.

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