The Astana International Exchange (“AIX”), after successfully establishing itself as a world-class stock exchange, is ready to move forward and find new ways of developing its business further.
At the AIX, we have built up a high-tech trading platform from scratch that offers not only expertise in its field, but also a regulatory environment that is familiar to the foreign investment community. We have a community of almost 30 trading members, including brokers operating in Kazakhstan, as well as brokers from China, Russia and Europe.
In 2021, the AIX exchange was approved as a full member of the World Federation of Exchanges (WFE), the global industry group for exchanges and CCPs, which represents over 250 market infrastructure providers, including 68 exchanges – full members of the WFE. This membership is a recognition of the AIX as a marketplace that meets the highest standards of leading global bourses and plays a vital role in developing an innovative and vibrant local capital market.
In July 2021, the AIX launched AIX Qazaq Index (AIXQI), which measures the performance of the shares of Kazakhstan linked companies. AIXQI is a market-capitalization-weighted index with a maximum weight cap. The AIX Index was comprised of Equity and GDR securities of 8 Kazakhstani and Kazakhstan linked companies traded on AIX, Kazakhstan Stock Exchange, and London Stock Exchange. In cooperation with Halyk Finance, two exchange-traded notes linked to the AIXQI index were listed on the AIX: an exchange-traded note with a passive investment approach, investing substantially all its assets in Kazakhstani equities in weights determined by AIX Qazaq Index, and an actively managed investment vehicle intended to outperform the AIXQI.
Starting from December 2021, issuers will be able to directly list on the AIX, a process for a company to become public without raising capital through the conventional initial public offering process (IPO). Unlike an IPO in which the shares would typically be sold to prospective investors at discount via bookbulding process, in the direct listing, the initial sales are conducted by the selling shareholders through the Exchange, with the prices determined based on matching buy and sell orders following the AIX Trading Rules.
In December 2021, the iX Bitcoin exchange note was issued, with the shares of ProShares Bitcoin Strategy ETF as an underlying asset – one of the largest funds tracking the performance of bitcoin futures. This is the first exchange instrument in Central Asia linked to a cryptocurrency.
AIX systematically develops a system of sustainable financing in the stock market and provides professional support to the participants in this process. We expect the ESG bond and green bond market in Kazakhstan to continuously grow on the back of global incentives for the adoption of sustainable development practices and the implementation of ESG goals among both issuers and investors.
In November 2021, Samruk-Energy JSC placed on the AIX exchange debut “green” bonds in the amount of 18.4 billion tenge maturing in 2028 with the coupon rate of 11.40%. The full amount was raised on AIX via book-building. Samruk-Energy became the first Kazakh issuer from the manufacturing sector to raise debt financing through green bonds.
Also in November 2021, the Eurasian Development Bank (EDB) listed three-year social bonds in the amount of 20 billion tenge at a coupon rate of 10.6%. The whole issue amount was raised through the AIX. The funds raised will be used for the development of the Issuer’s social projects implemented on the territory of the Republic of Kazakhstan.
AIX results as of February 1, 2022
STRATEGIC AREAS OF AIX DEVELOPMENT