ADB places bonds in Kyrgyz soms for first time – their yield is 10.5%

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The Asian Development Bank (ADB) has issued its first bonds in Kyrgyz soms in the amount of 427.5 million soms (approximately $5 mln), arranging the placement through Standard Chartered Bank, reports Economist.kg citing ADB’s press service.

The bonds have a 3-year term with a coupon rate of 10.5% and are payable in U.S. dollars. The issuance was fully subscribed by Record Currency Management and was structured as an international bond under ADB’s Global Medium-Term Note Program.

The financing fully hedges the currency risk for ADB's project to support micro and small enterprises (MSEs) in Kyrgyzstan, with no less than 40% of the funds allocated to women-owned businesses. The project is being implemented through 'Bank Kompanion,' which has a strong presence in rural areas and experience in supporting women entrepreneurs, noted the ADB.

“The first issuance of bonds in Kyrgyz soms strengthens our presence in the local currency market and helps mitigate currency risks for projects in ADB member countries,” said ADB Assistant Treasurer Jonathan Grosvenor.

This deal also advances ADB’s initiative to finance in the currencies of Central and West Asian countries, including Armenian drams, Azerbaijani manats, Georgian lari, Kazakhstani tenge, and Uzbek soms.

“We are pleased to support ADB in its first issuance of bonds in Kyrgyz soms, contributing to inclusive growth and the development of the local currency market,” commented Record Currency Management portfolio manager Renata Kreutzig on the bond issuance.

CentralasianLIGHT.org

November 7, 2024