EDB successfully placed debut AED-denominated bond in Kazakhstan
The Eurasian Development Bank (EDB) has successfully placed its debut AED-denominated bonds on the Astana International Exchange (AIX), becoming the first issuer of UAE dirham bonds in Kazakhstan, Kazinform News Agency correspondent reports.
A diversified pool of investors took part in the placement, including banks, funds, brokerage and investment companies from Kazakhstan and the UAE. Freedom Finance Global, a major local broker, acted as the lead manager for the bond placement.
The 185 million AED-denominated bond issuance (USD 50 million equivalent), with a 3-year maturity and a 6.5% coupon rate, marks a historic step in diversifying currency options for investors in the country and the Central Asian region. The transaction marks the Bank’s first tranche under the 700 million dirham programme and demonstrates the consistency of the Bank’s plans and efforts to diversify its sources and instruments of financing.
Daniyar Imangaliev, the EDB’s Deputy Chairman of the Board stated:
“We are proud to pioneer this AED-denominated bond issuance in our headquarters country – Kazakhstan, a testament to our commitment to fostering financial innovation and deepening regional capital markets. This transaction not only broadens investment opportunities but also strengthens economic linkages between our member states and key global financial hubs, especially the Gulf States region. The interest in this debut transaction from a diversified group of qualified investors underlines confidence in the creditworthiness of the EDB and the potential of the Kazakhstan market."
The bonds were placed through a book-building process on the AIX and were offered exclusively to qualified investors, whose growing interest in the UAE Dirhams is evident. As the currency is pegged to the US dollar, it eliminates exchange rate fluctuations. This allows investors operating in US Dollars to settle in the AED without the need for additional currency hedging or incurring related transaction costs.
Assel Mukazhanova, Chief Executive Officer of the AIX, noted:
“This milestone issuance represents the first AED-denominated bond in Kazakhstan, signalling a significant step toward greater currency diversification in the local capital market. It highlights the increasing appetite for new currency instruments and reinforces AIX’s commitment to serving the evolving needs of both investors and businesses. ”
Earlier, Kazinform News Agency reported that Head of State Kassym-Jomart Tokayev received Chairman of the Management Board of the Eurasian Development Bank Nikolai Podguzov.
