IFC Issues its First Tenge Bond, Supporting Agribusiness in Kazakhstan
03.08.2018 09:10 "Agro Perspectiva" (Kyiv) —
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 in Kazakhstan.
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 investment needs.”
“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.
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.