The first RMB-denominated bond in Kazakhstan listed on AIX Belt and Road Market

20 March 2020

Astana International Exchange (“AIX”, “Exchange”) is pleased to announce that the first RMB (Chinese Yuan)  Bond, or “Falcon Bond”, of the China Construction Bank Corporation Astana Branch (CCB Astana Branch), has been listed on AIX and the Hong Kong Exchange effective from March 20, 2020. The bond, maturing in March 2022, in the amount of 1 billion CNY (about 63 bn KZT[1]), is denominated in RMB (Chinese Yuan) with an interest rate of 2.95% per annum. The RMB bond is available only for professional investors. The RMB funds raised will be used to support general corporate purposes concerning local infrastructure projects and Belt & Road Initiative projects in Kazakhstan.

AIFC Governor, Kairat Kelimbetov, noted:

The listing of China Construction Bank RMB bond is an important outcome of the Kazakhstan-China financial cooperation under the framework of the Belt & Road Initiative. It is a significant milestone and will promote the offshore RMB market development in AIFC, Kazakhstan and Central Asia.

CEO of AIX, Tim Bennett, noted:

“AIX welcomes the listing of the first RMB bond on AIX which is also the first RMB product of the AIX Belt & Road Market. This issue is an innovative model of financing Belt & Road Initiative projects which will contribute to the development of the local economy and create new job opportunities.

SEO of CCB Astana Branch, Wang Songhua said:

As the first operating institution of CCB in Central AsiaChina Construction Bank Corporation Astana Branch successfully launched the first RMB Bond, or “Falcon Bond” under the strategic cooperation framework of our two countries. CCB Astana Branch will work with AIFC and AIX on building the offshore RMB centre which implement the joint communiqué issued after bilateral talks between President Xi Jinping and President Kassym-Jomart Tokayev outlining the promotion of bilateral local currency settlement jointly by China and Kazakhstan.”

AIFC has been aiming to become the RMB clearing and settlement regional center in Kazakhstan, where the Belt & Road Initiative was first announced in 2013, as well as in the region.

AIX Belt and Road Market is the key part, where RMB securities, including bond, equities and other products can be listed and traded. AIX is expecting more RMB issuances from diversified issuers which will contribute to establish AIX as the RMB securities listing and trading center for Central Asia.

CCB Astana Branch, the first foreign commercial bank’s branch registered under AIFC jurisdiction, has been appointed as RMB clearing bank in AIFC in 2019.

[1] Based on the currency rates from National Bank of Kazakhstan for the day of listing.

Reference information:

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 common 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:

AIFC. Astana International Financial Center (AIFC) was established on the initiative of Nursultan Nazarbayev, the First President of the Republic of Kazakhstan. The constitutional law establishing AIFC was signed on December 7, 2015. The aim of AIFC is to form a leading center of international financial services. The objectives of AIFC are to assist in attracting investments into the country’s economy, create an attractive environment for investment in financial services, develop the securities market of the Republic of Kazakhstan and ensure its integration with international capital markets.

CCB. China Construction Bank Corporation is one of the “big four” banks in the People’s Republic of China. According to the 2019 S&P Global Market Intelligence report that the company was the 2nd largest bank in the world by total assets. The Company offers deposits, loans, fund management, foreign exchange, and other services to individuals, enterprises, and other clients. Leveraging its vast resources and geographic advantages in the Chinese domestic market, the Bank is committed to providing a world-wide banking and financial services platform to service the overseas banking needs of its domestic corporate and personal banking customers and the domestic banking needs of its overseas corporate and personal banking customers.

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