Leasing sector on KASE: new growth tools. How businesses can raise capital and issue bonds

Annual yields up to 23% in tenge and a delinquency rate below 3% - why should private investors consider bonds from the leasing sector?
This question and prospects for raising funding were discussed at a roundtable in Almaty organized by KASE together with the KazLeasing Association of Leasing Companies of Kazakhstan. The event brought together representatives from the leasing industry, brokers and private investors at the exchange.

Alisa Karbayeva, Director of KASE’s Client Relations Office, spoke to participants about practical opportunities for entering the exchange market. In her presentation, she outlined a step-by-step listing roadmap and accelerated capital-raising tools that allow companies to place an issue on KASE in just a few days.

According to KazLeasing, the industry is currently experiencing explosive growth: over the past six years, the country's total leasing portfolio has grown by 6.6 times, reaching 3.4 trln tenge. Furthermore, reliability of bonds in this sector is underpinned by tangible assets - machinery and equipment remain the property of the lessor until the lease is fully paid off, while a 20-30% advance payment from the client mitigates risk and ensures stable coupon payments.

"Kazakhstan’s leasing sector is growing rapidly, and diversifying of funding sources is essential for scaling it up. Entry to the KASE's public capital market is a logical step toward expanding a business's resource base. For private investors, these securities offer an attractive balance of high yields and tangible collateral", emphasized Darkhan Abdykalyk, CEO of Nur Leasing LLP.

Brokers from Alatau City Invest, alongside executives from Capital Leasing Group LLP and Leasing Group JSC, shared practical experience of asset issue and securitization, while experts from the Association of Minority Shareholders (QAMS) presented the retail market's perspective.

The meeting concluded with a panel discussion on secondary market development, regulatory incentives and the prospects of portfolio tokenization via DFAs. Following the roundtable, KASE and KazLeasing began preparing a practical checklist for future issuers and a set of proposals for the regulator.