The Astana International Exchange (“AIX” or the “Exchange”) is pleased to present its results for 2023.
Despite the high market interest rates, 2023 has still been an extraordinary year for the AIX in terms of the number of listings, trading volume and capital raised by issuers.
Assel Mukazhanova, AIX CEO, said:
“Amid the challenging landscape and geopolitical uncertainties, 2023 proved to be an exceptional year for the AIX, marked by significant accomplishments and notable milestones. Throughout this remarkable period, a substantial array of debt instruments has been listed on the AIX, resulting in businesses attracting over $2bn. The year witnessed record-breaking trading turnover and exponential growth in investor accounts.
Our objective remains clear and steadfast — to facilitate sustainable, long-term growth in the capital market and emerge as a pillar of support during challenging times for both local and foreign companies, aiding them in achieving their business objectives. Recognizing the substantial impact our efforts have on Kazakhstan’s economy, we are keenly focused on exploring multiple opportunities in the upcoming year and managing the AIX in a manner that enables us to effectively address all challenges.”
AIX results as of 31 December 2023:
- 94 different issuers listed 150 securities on the AIX.
- Debt capital raised since inception amounts to $4.2bn and equity capital – $365m.
- Total trading turnover (stocks, bonds, ETNs, ETFs) more than tripled from $173m in 2022 to $582m in 2023. Equity trading also returned impressive results over the year, almost doubling to $130m.
- The 37 trading members include brokers from Kazakhstan, China and European countries.
- More than 1.5m investor accounts in the AIX Central Securities Depository (AIX CSD).
The most traded equity in 2023 was Polymetal International plc (“Polymetal”) increasing its trading share significantly from 2.5% to 31.1% over the year with NC KazMunayGas’ common shares which accounted for 30.7% of traded volume. Meanwhile, NAC Kazatomprom common shares and GDRs accounted for 18.2% of the total trading for the year.
As confirmation of AIX’s international status, non-residents accounted for 31% of equity trading across 2023.
The AIX Qazaq Index (securities of 10 companies doing business in Kazakhstan) rose from 948.36 to 1217.38 points in 2023, which equates to 28.37% growth.
AIX listings in 2023
AIX new listings numbered 63 (56 debt securities and 7 equity securities) in 2023, compared to only 14 securities in 2022.
$2.0bn of debt capital was raised in 2023, which is 3.5 times that raised in 2022 ($557m). The companies with debt instruments listed on the AIX represent a range of industries such as banking, mining, logistics, construction and fintech.
Issuer geography is also expanding, with companies from the UAE, Luxembourg, the UK and Cyprus joining the official AIX listing in 2023.
New products
At the end of 2022, a liquidity management tool was introduced for intra-group financing of the holding company through the issuance of bonds. In 2023, two holding companies registered their Liquidity Management Programs under which 18 bonds were issued.
In July 2023, the AIX launched a program waiving initial listing and trading admission fees on public ESG company instruments issued before December 31, 2023. The Development Bank of Kazakhstan and Jet Group Ltd. made use of the program to issue green bonds.
The Exchange also launched a new debt product in October 2023 to help small and medium-sized companies use capital markets to obtain short-term tenge financing, subject to special conditions.
Retail investors
The number of investor accounts increased 9 times in the two years from 2021 to reach 1.5m.
In 2023, Exchange Traded Notes (ETNs) traded (buy-sell) through the Tabys mobile app were worth a record $5.5m, with funds under management totaling $4.1m and active investors reaching 14.9 thousand individuals.
Redomiciliation of Polymetal International plc.
On August 7, 2023, Polymetal successfully completed its redomiciliation from Jersey to the Astana International Financial Centre (“AIFC”). Earlier in April 2023, it had approved a primary listing on the AIX, with secondary listings in London and Moscow. The Polymetal redomiciliation led to its investors and custodians holding Polymetal investor securities opening accounts with the AIX CSD through Citibank Kazakhstan, which is a member of the AIX CSD.
A result of this has been that 6 major global custodians have opened sub-accounts in the AIX CSD, which increases the exposure and access to the Kazakhstan stock market for frontier and emerging market funds.
Overseas institutional and retail investors currently hold $1.2bn of the $1.3bn of Polymetal shares held in the AIX CSD. Retail investors from about 40 countries hold accounts in the AIX CSD.
Redomiciliation has meant that Polymetal’s share of AIX equity trading more than tripled in 2023 from 14% before redomiciliation to 49% post redomiciliation.
International cooperation
AIX and the Abu Dhabi Stock Exchange (ADX) have signed an agreement for AIX to join the Tabadul Digital Exchange Hub. The Bahrain Stock Exchange, Central Asian Stock Exchange (Tajikistan) and Muscat Securities Market (Oman) are already members of Tabadul.
The Tabadul Hub is the first regional digital exchange center based on a mutual trading access model, offering a digital trading platform for regional and global member exchanges. For example, Freedom Finance Global has been recognized and onboarded as a Tabadul Hub broker from Kazakhstan in 2023, and BHM Capital (Dubai, UAE) was onboarded as an AIX trading member on January 3, 2024.
Reference:
AIX was formed in 2017 within the Astana International Financial Centre development framework. AIX shareholders are AIFC, 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. www.aix.kz
The Astana International Financial Centre (AIFC) is an independent jurisdiction that started (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/