Almaty, Kazakhstan, August 2, 2018—IFC,
a member of the World Bank Group, issued its first Kazakh tenge bond in
the domestic markets, raising KZT 8.6 billion—$25 million equivalent—
to create access to local-currency finance help develop local capital markets
IFC will invest the bond proceeds in KazFoodProducts,
a leading Kazakh food processing group of companies operating in grain
milling and confectionary sectors, to support the company’s expansion
plans and boost Kazakhstan's agricultural sector.
The bond was more than 2 times oversubscribed
and over 75% was allocated to private sector investors. The transaction
is the result of a collaboration between IFC, local government, the National
Bank of Kazakhstan, and market participants. Tengri Capital MB and Centras
Securities acted as the bond’s lead and co-lead arrangers respectively.
The notes will be listed on Kazakhstan Stock Exchange.
Alina Aldambergen, Chairman of Management
Board of Kazakhstan Stock Exchange, said: “The IFC bond makes an important
contribution to the development of local capital markets, attracting multiple
private-sector investors. We hope that other international and domestic
issuers will follow IFC and connect savings to Kazakhstan’s private sector
“The issuance of IFC’s tenge-denominated
bond is in line with IFC’s strategy to source long-term funding and create
access to local currency finance for private sector expansion, helping
to boost economic growth and create jobs,” said Cassandra Colbert, IFC
Regional Manager for Central Asia.
IFC issues local currency-denominated bonds
in emerging market currencies as part of its regular program of raising
funds for private sector development, and to support the development of
domestic capital markets. IFC bonds are rated triple-A by Moody’s Investors
Service and Standard & Poor’s.
Since the inception of the local currency
lending program in the early 2000s, IFC has extended more than $19.6 billion
in cumulative local currency financing to its clients globally, in more
than 50 currencies including the Chinese renminbi, Brazilian real, South
African rand, Turkish lira, Kazakh tenge, Tajik somoni, Armenian dram,
Azerbaijani manat, Georgian lari, and Russian ruble. IFC’s local currency
finance commitments are on a steep rise, surpassing $3.5 billion in FY18,
up from $500 million in 2009.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In fiscal year 2018, we delivered more
than $23 billion in long-term financing for developing countries, leveraging
the power of the private sector to end extreme poverty and boost shared
prosperity. For more information, visit www.ifc.org.
Kazakhstan Stock Exchange (KASE) is the leading
stock exchange in the Central Asian region and the only exchange in Kazakhstan
carrying out its activities in the financial market. It is a universal
trading platform for repo market instruments, foreign currencies, government
and corporate securities, bonds of international financial institutions
as well as derivatives.
KASE is the member of the World Federation
of Exchanges (WFE), the Federation of Euro-Asian Stock Exchanges (FEAS)
and other international and local professional associations. In 2015, KASE
joined the UN Sustainable Stock Exchanges initiative. KASE ranks second
among the CIS exchanges on the volume of trading in securities, and it
also ranks sixth on equity market capitalization among FEAS stock exchanges.
For more information, visit www.kase.kz.