EBRD launches pioneering index-linked Eurobond in Kazakh tenge
Baku, Azerbaijan, Nov. 17
By Elena Kosolapova – Trend:
The European Bank for Reconstruction and Development (EBRD) launched a 34 billion tenge (240 tenge = $1) Eurobond, the bank reported.
The bank’s 34 billion tenge eurobond, issued this Monday, has a five-year maturity and pays a spread of 10 basis points per annum over the 3-month Consumer Price Index (CPI) rate.
The issue will settle on 21 November 2016, and is lead managed by Citi Global Markets Limited.
The bonds will be cleared through Euroclear and Clearstream in tenge and listed in London.
The EBRD will also apply to the Kazakhstan Stock Exchange (KASE) to seek a domestic listing for the Notes, and subsequently will request the National Bank of Kazakhstan (NBK) accept them for their repurchase operations (REPO) with domestic banks, thereby increasing their liquidity.
The EBRD is both a significant tenge lender and borrower and has taken an active part in developing local capital markets. It issued its first tenge-denominated bond in February 2009.
Follow the author on Twitter:@E_Kosolapova