Eurasian Development Bank sells bonds KZP06Y05E904 (KZ2D00004421, EABRK111023) in the amount of KZT20.0 bn with Kazkommerts Securities (subsidiary of Kazkommertsbank) acting as underwriter

12.10.18 14:18
/KASE, October 12, 2018/ – Kazkommerts Securities (subsidiary of Kazkommertsbank) (Almaty), the financial advisor of Eurasian Development Bank, has provided KASE with the following joint press release: quote 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 September and October 2018, the Bank 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 KZT 20 billion. 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 KZT 20 billion. 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. "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," Dmitry Ladikov-Roev, Managing Director for Assets and Liabilities at the EDB, commented. "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," Timur Salimov, Managing Director and Member of the Board at Kazkommerts Securities, added. 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 about the EDB 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 (the arrangement of the issuance 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 unquote [2018-10-12]