/KASE, 13.06.18/ – "Kazkommerts Securities" JSC (Subsidiary of
Kazkommertsbank JSC) (Almaty, in the header and hereinafter – "Kazkommerts
Securities" JSC), which is a member of Kazakhstan Stock Exchange (KASE),
provided to KASE the press release of the Eurasian Development Bank dated
June 13, 2018 about the following:
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The Eurasian Development Bank placed new tenge-denominated bond issues
underwritten by Kazkommerts Securities at KASE.
The Eurasian Development Bank (EDB) made three new offerings of tenge-
denominated bonds at Kazakhstan Stock Exchange (KASE) for a total of KZT
50 billion.
In May and June 2018, the Bank arranged 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 issues is KZT 50 billion. The bonds will mature in
three years with a coupon of 9.10% per annum. Moody’s rated the securities at
Baa1, which is also the Bank's current rating. Investors submitted 35 bids for
a total of more than KZT 54 billion, with the demand for bonds at the cut-off
price exceeding the total value of the offering. Kazkommerts Securities was the
financial advisor and underwriter for the issues.
This offering has confirmed Kazakhstan’s investors’ stable interest in the
Bank’s bonds, as well as the possibility to place them among an unlimited
number of market players. That said, the issues have a minimal spread relative
to government securities, suggesting that a favourable market environment
exists for reliable issuers to offer their financial instruments. The investors
that took part in the auction were Kazakhstan’s major banks, the National Bank
of the Republic of Kazakhstan, insurers, and brokers.
“The success of this issue is important to us as the demand for the Bank’s
project finance in Kazakhstan is growing. The possibility to borrow significant
funds from the market with a low spread on government securities is essential
for our investment projects. We are pleased that investors continue to
demonstrate significant interest in our bonds. We would also like to express
our gratitude to Kazkommerts Security for their support in arranging these
offerings,” Dmitry Ladikov-Roev, Managing Director for Assets and Liabilities
at the EDB, comments.
“Notably, this is the first significant domestic offering this year with a
minimal spread on government securities. Since the beginning of the year, the
National Bank of Kazakhstan’s base rate reduced by 1.25 basis points, to 9% as
at the offering date. The strong demand for high-quality bonds reflects the
market’s desire to have the yield fixed for at least three years, which is,
generally, in line with our inflation and base rate forecasts for the near
future,” Timur Salimov, Managing Director and Member of the Board at
Kazkommerts Securities, adds.
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 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 (arranging 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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[2018-06-13]