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New KZT-Denominated Bond Issued by EDB Underwritten by Kazkommerts Securities at KASE

Saturday 13 October 2018

ALMATY (EDB press service) — The Eurasian Development Bank (EDB) made another offering of its tenge-denominated bonds at Kazakhstan Stock Exchange (KASE) for a total of KZT20 bln.

In September and October 2018, EDB arranged meetings with potential investors in Kazakhstan and, as a result, decided to make its second bond placement this year. The total face value of the issue is KZT20 bln. The bonds will mature in five years with a coupon of 9.50% per annum. Moody’s rated the issue at Baa1, which is also the Bank’s current ranking. Investors submitted four bids for a total of KZT20 bln. Kazkommerts Securities was the financial advisor and underwriter for the issue.

The offering has confirmed that Kazakhstan’s investors remain interested in the Bank’s bonds and that they are in demand by the market despite the persisting volatility. The offering had a minimal spread relative to government securities, which reflects a positive trend and the existence of a market environment for the placement of financial instruments by reliable issuers.

Dmitry Ladikov-Roev, Managing Director for Assets and Liabilities at the EDB, commented:

The success of this issue confirms investors’ interest in the Bank’s bonds despite the current market volatility. This is of special importance to us as regards the EDB’s projects in Kazakhstan. We would also like to express our gratitude to Kazkommerts Security for their support.

Timur Salimov, Managing Director and Member of the Board at Kazkommerts Securities, added:

We deem it a positive sign that, despite the persisting volatility of the tenge and the relatively high yields on the instruments denominated in foreign currencies, the local stock market maintains demand for the bonds of high-quality issuers such as the Eurasian Development Bank, although with the minimal spread relative to government securities. This indicates that investors intend to fix their yields for at least five years.

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