Entrepreneurship Development Fund Damu places debut social bonds on KASE for KZT1.0 bn.

15.09.21 18:08
/KASE, September 15, 2021/ – Entrepreneurship Development Fund Damu JSC (Nur-Sultan, bonds, KASE official list), has provided KASE with the following press release dated September 15, 2020: For the first time in Kazakhstan, Entrepreneurship Development Fund Damu JSC placed a new financial instrument - social bonds registered by the Agency of the Republic of Kazakhstan for the Regulation and Development of the Financial Market at the beginning of September this year. The total amount of placed securities amounted to 1 billion tenge, maturity - 5 years, yield - 11.9%, coupon payment frequency - twice a year. The debut issue of social bonds focused on the principles of sustainable development was carried out on Kazakhstan Stock Exchange JSC (KASE) and was purchased by local institutional investors. Halyk Finance, a subsidiary of Halyk Bank of Kazakhstan, was the broker and underwriter of the deal. Funds from social bonds are planned to be used to finance small and medium-sized businesses from the most affected sectors of the economy during the COVID-19 pandemic through second-tier banks, microfinance organizations or leasing companies. This issue fully complies with the social bonds principles (SBP) of the International Capital Markets Association (ICMA), as confirmed by Expert RA Rating Agency JSC. "Bonds of Damu Fund are the first securities on Kazakhstan Stock Exchange that comply with social principles. To implement the mission of sustainable development of small and medium-sized businesses, Damu Fund plans to support the sectors of the economy most affected by the COVID-19 pandemic. This placement is an opportunity not only to attract financing in the capital market and expand the investor base, but also to introduce a new financial instrument for the market based on the principles of sustainable development," explained Gaukhar Buribayeva, Chairwoman of the Management Board of the Damu Fund - https://kase.kz/files/emitters/FRMP/frmp_reliz_150921.pdf [2021-09-15]