Astana International Exchange (AIX) is pleased to announce that the Government of Kazakhstan acting through the Ministry of Finance successfully issued a 10-years benchmark Eurobond denominated in US Dollars. The Eurobonds amounting to US$1.5bn carry a coupon rate of 4.714% p.a. and have been offered on both AIX and the London Stock Exchange (LSE). The volume of orders on AIX for the Eurobonds amounted to $322m. As a result of the allocation, AIX investors have received Eurobonds worth $189.37m.
Local and international markets generated an order book in excess of US$5bln or 4x oversubscription which resulted into the final coupon rate to drop to 4.714%, equivalent to a 88 bps premium to US Treasuries, thereby setting a record low spread for 10-years sovereign debt in emerging markets.
The International organizers and bookrunners were Citibank, J.P. Morgan, Société Générale CIB. BCC Invest was mandated to lead the offering on AIX.
Assel Mukazhanova, CEO of the AIX, noted:
“We are honored to facilitate the local listing of Sovereign bonds issued by the Ministry of Finance of the Republic of Kazakhstan. A significant oversubscription from local investors underscores their strong interest and the local market’s capacity to accommodate large-scale transactions. This benchmark bond issuance not only sets a new standard but also serves as a pathway for Kazakhstani corporate issuers to access the market. It will further support the Government’s strategic objectives to diversify the foreign currency composition of its sovereign debt and broaden the investor base.”
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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. www.aifc.kz