Kazakhstan completes placement of three bond issues totaling 40 billion rubles

Kazakhstan completes placement of three bond issues totaling 40 billion rubles

Kazakhstan completes placement of three bond issues totaling 40 billion rubles

The Ministry of Finance of Kazakhstan has fully placed bonds of the 1st, 7th and 11th series with a total volume of 40 billion rubles, the issuer said.

As noted in the reports, 19.520 million series 1 bonds, as well as 10 million series 7 and 11 bonds with a par value of 1,000 rubles each, were placed in the Russian Federation. In addition, 480 thousand series 1 bonds with a par value of RUB 1,000 each were placed outside the Russian Federation.

Earlier it was reported that the placement of the issues will take place simultaneously on the sites of the Moscow Exchange and the Astana Exchange (AIX). The placement was settled on September 23.

The collection of applications for the issues took place on September 17. The rate of the 1st coupon of 3-year bonds of the 1st series for 20 billion rubles is set at 5.40% per annum, of the 7th series with a maturity of 7 years for 10 billion rubles – 6.55% per annum and of the 11th series with a maturity of 10 years for 10 billion rubles – 7.00% per annum.

The organizers were Gazprombank, Credit Bank of Moscow, Rosbank and Kazakhstan's First Heartland Securities.

Rosbank will act as the placement agent on the Moscow Exchange.

Earlier it was reported that the Bank of Russia made a decision on registration and admission to placement and public circulation in the Russian Federation of 14 issues of bonds of Kazakhstan with a total volume of 170 billion rubles.

The volume of the 1-2nd series will be 20 billion rubles, the 3-5th, as well as the 7-9th and 11-14th series – 10 billion rubles each, the 6th and 10th series – 15 each billion rubles. The face value of one bond is 1,000 rubles.

The circulation period of the 1-4th issues is 3 years, the 5-6th – 5 years, the 7-10th – 7 years, 11-14th – 10 years.

As reported by the Ministry of Finance of Kazakhstan, the country intends to attract in 2020 to cover the budget deficit, including $ 500 million by placing treasury bonds on the Russian market.

“This year we plan to enter the Russian market, we are planning bonds for an amount equivalent to at least $ 500 million. Why to the Russian market? Because the rates are lower. At the same time, the currency risk is minimal,” Alikhan Smailov, who then held the post Minister of Finance of Kazakhstan.

For the first time at the end of last year, Interfax reported about Kazakhstan's accession to Mosbirzh in 2020, citing sources. At the same time, sources noted that the negotiations are not easy.

In 2019, after a long break, Belarus placed government bonds on the Moscow Exchange – in the amount of 10 billion rubles. In April 2020, Belarus again placed ruble 5-year government bonds in the amount of 10 billion rubles, the rate of the 1st coupon was set at 8.50% per annum.

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