A subsidiary of BI Group has successfully placed KZT 6.3bn bond on AIX

23 July 2021

Astana International Exchange (“AIX”, “Exchange”) is pleased to announce that “Megastroy Ltd” LLP (“Megastroy”), a subsidiary of one of the largest developers in Kazakhstan, BI Group, placed the first Tranche under the 20 bn KZT Bond Programme in the amount of KZT6.3 bn. The Bond is due in 2022 and bears a 15.5% p.a. coupon. Jusan Invest JSC acted as a sole lead manager of the placement.

This is the second placement of the 12-month bonds by Megastroy on AIX following their debut offering in March 2021. Both offerings were oversubscribed indicating high interest among retail and institutional investors.

Renat Bekturov, Chief Executive Officer, AIX, said:

“Another successful placement of bonds by a company from the Kazakhstani construction sector proves the case for raising capital by issuers from the real sector of the economy on the exchange. Such examples demonstrate that the terms, efficiency and conditions of financing on the organized market are attractive for business and open new opportunities for development for them.”

Almas Lepesbayev, Vice-Chairman on Finances, BI Group holding, said:

“Our first ever placement in March 2021 turned out to be the largest market transaction in the housing construction in Kazakhstan and it has received a positive response from the market and the target investor base. This time we have made a decision to register a medium term note program for the amount of KZT 20 bn with AIX to address the overall short to medium terms BI Group’s financial goals and strategy. We believe that both transactions can be treated as a huge success and another step in our path towards the international markets.”

Maxim Kabanov, Deputy Chairman of the Board, Jusan Invest, commented:

“We are glad to advise that in only three months since the debut placement of the issuer we were able to return to the market and surpass the previous success. This transaction is unique since it showed a confidence in the company of retail investors being the most demanding investor base. It was our honor to support the issuer and our client base throughout this transaction.”

Zhanna Tulekova, Head of Corporate Finance, Jusan Invest, noted:

“We are grateful to the Exchange team for the well-coordinated work in the implementation of this transaction and would like to note a significant increase in interest in AIX from potential issuers as well as investors.

Reference:

AIX was formed in 2017 within the Astana International Financial Centre development framework. AIX shareholders are AIFC, Goldman Sachs, the Shanghai stock exchange, the silk Road Fund, and NASDAQ, which also provides the AIX trading platform. The exchange operates within a regulatory environment based on the principles of English Law, thus providing a reliable investment environment. The mission of AIX is to develop an active capital market in Kazakhstan and the region by providing clear and favorable conditions for attracting financing to private and public businesses. AIX develops special segments for mining companies as well as infrastructure projects under the Belt and Road initiative. More details:www.aix.kz

The Astana International Financial Centre was created by the initiative of the First President of the Republic of Kazakhstan, Leader of the Nation, Nur-Sultan Nazarbayev as part of the “100 steps to implement five institutional reforms” national program. The Centre’s development strategy until 2025 was approved by the Management council of the AIFC during the council’s meeting on July 2, 2020. In accordance with the strategy, the vision of AIFC is in becoming the leading financial centre in the region that includes Central Asia, the Caucasus, EAEU countries, western China, Mongolia, and Eastern Europe. The mission of the AIFC is in assisting the sustainable and long-term development of the region. As the head of state Tokayev noted, “AIFC, with its unique opportunities, can act as a universal platform that connects the countries in the region. ”The strategic directions for the sustainable development of the AIFC include the development of a circular economy, financial technologies, and “digital financial centre.” https://aifc.kz/

BI Group is the largest innovative construction holding company represented in Kazakhstan and Uzbekistan markets, is the leader in the Kazakhstan construction industry and included in the world rating of developers ENR TOP 250 GLOBAL CONTRACTORS. For 26 years of work, it has earned a reputation as a reliable partner with over 200,000 clients. BI Group launched an innovative modular construction plant – Modex, which will allow 16-storey residential buildings to be built in just four months.