EDB purchases bonds of Kazakh KEGOC JSC

Kazakhstan Materials 23 October 2021 10:30 (UTC +04:00)
EDB purchases bonds of Kazakh KEGOC JSC

BAKU, Azerbaijan, Oct. 23


The Eurasian Development Bank (EDB) purchased bonds of the Joint Stock Company Kazakhstan Electricity Grid Operating Company KEGOC in the amount of 14.3 billion tenge ($33.6 million), Trend reports.

Securities with a maturity of 15 years were purchased within the placement of KEGOC JSC on the Kazakhstan Stock Exchange (KASE) of the first issue of bonds of the issuer's second bond program in the total amount of 35 billion tenge ($82.3 million).

The borrowed funds are intended for the implementation of the projects “Reconstruction of 220-500 kV overhead lines of KEGOC branches”, “Strengthening the electrical network of the Western zone of the EEC of Kazakhstan”, as well as for general corporate purposes of the issuer.

Reconstruction of overhead power transmission lines will ensure reliable operation of electric grids, optimize the volume of costs for consumers of electric energy, and increase the efficiency of KEGOC.

The construction of new power grid facilities will increase the reliability of power supply to consumers in the Western zone of the Unified Electric Power System of Kazakhstan by strengthening 220 kV power grids between the regions.

“The Bank takes an active position in the implementation of investment projects in the Western region. Today, the energy sector is the second in the EDB portfolio project - 17.9 percent. In 2020, the Bank purchased KEGOC bonds for more than 8 billion tenge ($18.8 million). These projects are of great social importance. In the course of their implementation, additional jobs will be created during the construction and installation work. This, in turn, will have a positive effect on the development of the real sector of the economy, increase in employment and well-being of the population, and an increase in tax payments to budgets,” said Amangeldy Isenov, Deputy Chairman of the Management Board of the EDB.

SkyBridge Invest JSC acted as a broker during the bond issue.