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EDB organizes sovereign bonds placement of Kazakh Finance Ministry

Kazakhstan Materials 25 June 2021 16:35 (UTC +04:00)
EDB organizes sovereign bonds placement of Kazakh Finance Ministry

BAKU, Azerbaijan, June 25

By Nargiz Sadikhova – Trend:

The Eurasian Development Bank (EDB) organized the placement of sovereign bonds of Kazakh Ministry of Finance in Russian rubles on the Moscow Exchange and Astana International Exchange Limited (AIX), Trend reports citing the EDB.

The total volume of the placement was 40 billion rubles ($554.4 million) with maturities of 5, 7 and 10 years. The placement was co-organized by VTB Capital, Gazprombank, Credit Bank of Moscow, Sberbank KIB and First Heartland Securities.

The order book was opened on June 24, 2021 with the initial coupon rate target: for 5 years - at 7.55 percent per annum, for 7 years - at 7.75 percent per annum, for 10 years - at 8 percent per annum. During the bookbuilding, the coupon level for all issues was lowered twice. The final value was: for 5 years - 7.48 percent, for 7 years - 7.69 percent, for 10 years - 7.92 percent. The placement was attended by state and private banks, individuals.

"We consider the deal on the placement of sovereign bonds as a benchmark, since it fully complies with the Bank's mandate - it strengthens the process of integrating the capital markets of the EDB founding countries. It is important to note that 19.4 percent of the issue was placed on the site of Astana International Exchange (AIX), which allowed the issuer to expand the circle of investors," Nikolay Podguzov, Chairman of the Management Board of the EDB said.

Over the period from 2020 through 2021, the Bank increased its presence as an organizer of bond issues in the capital markets of the EAEU countries. This year, the EDB has successfully placed an issue of Eurobonds of Russian Railways and bonds of Samruk-Kazyna Construction in Russian rubles.

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Follow the author on Twitter: @nargiz_sadikh

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