The Eurasian Development Bank with the support of Kazkommerts Securities has placed new bond issues in tenge.
Almaty, June 13, 2018 The Eurasian Development Bank once again successfully placed three bond issues in the trading system of Kazakhstan Stock Exchange, JSC (KASE) totaling 50 billion tenge.
In May-June of the current year, the Bank held meetings with potential investors in Kazakhstan and following the results of the meetings decided to place its bonds for the first time in this year. The total nominal volume of placed bonds with maturity of 3 years amounted to KZT 50 billion; the coupon rate at which buyers’ bids were executed amounted to 9.1 percent per annum. The rating agency Moody’s assigned the bonds with an international credit rating at the level of the current banking rating, i.e. Baa1. In the course of the bidding 35 investors submitted their proposals totaling more than 54 billion tenge, of which demand for bonds at hurdle rate exceeded the volume of the bond placement. Kazkommerts Securities, JSC was the financial consultant and underwriter, accompanying the Eurasian Development Bank in the process of listing and placement of bonds.
This placement once again showed not only the existence of a steady interest in the bonds of the Bank from Kazakhstan investors, but also the opportunity to conduct market placements of the Bank’s bonds among an unlimited number of investors. At this the placement was conducted with a minimal P&C to the government securities’ curve, that reflects the positive trend and market conditions for the placement of financial instruments by reliable issuers. The list of investors participating in the bidding included the largest banks of Kazakhstan, the National Bank of the Republic of Kazakhstan, participants in the insurance market of the RK, and some brokerage companies.
“The success of this issue is important for us in terms of financing the increasing demand from the Bank’s project activities in Kazakhstan. The opportunity to borrow resources in the market in large volumes and with a low P&C to the government securities’ curve is very important for the implementation of the EDB investment projects. We are pleased to see the continued strong interest in the Bank’s bonds from investors. We also want to thank Kazkommerts Securities for supporting in the next successful placement”, said Dmitry Ladikov-Royev, Managing Director for the EDB Assets and Liabilities.
“Noteworthy is the fact that this placement is the first significant local placement this year with a minimum premium to the government securities’ curve. Since the beginning of this year, the base rate of the NBRK has decreased by 1.25 b.p. and at the time of placement was 9%. Good demand for high-quality bonds reflects the desire of the market to fix the rate of return for at least three years, which in general reflects our expert forecasts on the movement of inflation and the base rate for the near future. I would also like to note that this transaction is a landmark for the local securities market, because it represents the largest placement of bonds of the international financial organization in Kazakhstan”, commented Timur Salimov - Managing Director, member of the Board of Kazkommerts Securities, JSC.
The Eurasian Development Bank (EDB) is an international financial institution established by Russia and Kazakhstan in January 2006 to promote the development of the market economy of the participating states, their sustainable economic growth and the expansion of mutual trade and economic ties. The authorized capital of the EDB is $ 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.
More information about EDB could be found on the site http://eabr.org/
Kazkommerts Securities, JSC is one of the leading investment banks in Kazakhstan, providing a full range of investment banking services, including brokerage services, securities trading, financial consulting and underwriting (arrangement of issuance and placement of debt and equity securities), corporate finance services, investment portfolio management and analytical services.
Kazkommerts Securities is recognized as the best investment bank of Kazakhstan in 2018
Kazkommerts Securities JSC, a participant of Halyk Group, has won the nomination “The Best Investment Bank of Kazakhstan in 2018” as a result of the 19th annual survey of Global Finance international publication. You can find this information in the April issue of Global Finance magazine.
To assess and select winners, the Global Finance editorial team engaged industry experts and used its own methodology, which takes into account such criteria as: the market share of a company, the number and total volume of transactions; the level of professional service and advising clients; the investment opportunities for structuring transactions; the efficiency of using a branch network; the required efforts to achieve objectives in the current market conditions; the use of innovative approaches; the pricing factors when initially placing securities; the dynamics of placed securities’ market price on the secondary market and the market reputation of a company being valued. A part of the analysis considered the announced or completed (from Q4 2016 to Q3 2017) transactions.
The total volume of debt securities placed by Kazkommerts Securities in 2017 amounted to 179.5 billion tenge, which provided the company with more than 59% of the market. Totally 12 issues of tenge bonds of 5 issuers were placed.
The most significant transaction of Kazkommerts Securities over the past year was the issue and placement of the Eurasian Development Bank bonds with a total volume of KZT35 bn, due to the high interest of institutional investors, as well as the market and competitive nature of the placement. For more information about Global Finance, visit https://www.gfmag.com/
KazKom Securities has taken the first place in the rating of Kazakhstan’s investment banks according to the Forbes Kazakhstan business version.
Chingiz Zhaksybek, our company’s Board Chairman, told in details to the magazine about the current situation in the stock market, about its wide possibilities and how investment bankers can help classical banks cope with excess liquidity.
“Last year we celebrated our 20 years’ jubilee in the market. We have entered the country’s largest banking group Halyk. Moreover, we have received the award “Best Investment Bank of Kazakhstan” from World Finance.
Our index of KASE “blue chips” appeared among the growing leaders throughout the world, it is over 60% in 2017 Capitalization of the stock market to GDP has grown over the past two years from 15 to 30, but there is definitely a room for improvement: in the West, this figure exceeds 100%”, - the article says.
“If we talk about our internal affairs, then after a year of work on the project, we have launched QTrader platform. This cross-platform is customized for work both from the desktop and from iOS and Android mobile versions. It is designed for both retail and corporate clients”, - Chingiz Zhaksybek communicated.
You can read about this matter and many other things in the new issue of Forbes Kazakhstan.