Kyrgyzstan Finance Ministry Sells Government Bonds worth 341.9 Million Rubles
Kyrgyzstan successfully placed government treasury bonds in two national currencies for the first time, on the markets of the Kyrgyz Republic and Russia. This significant move was reported by the Ministry of Finance, who announced that issues of state treasury bonds worth 1 billion soms and 1 billion rubles were simultaneously placed on December 22.
The primary supply of securities took place at an auction on the Kyrgyz Stock Exchange, with the storage of a global certificate in the central depository of the Kyrgyz Republic. Meanwhile, the secondary supply was presented on the Russian market thanks to the existing depository bridge.
The auction resulted in the placement of two-year bonds in the amount of 518.7 million soms with a coupon rate of 15.5 percent, and 341.9 million rubles with a coupon rate of 14.5 percent. Russian investors contributed 311,880 million rubles and 182,120 million soms, while Kyrgyz investors bought state bonds in soms for 336,575 million soms and in rubles for 30 million.
Despite the unexpected increase in the Bank of Russia’s key rate to 16 percent, the placement structure successfully attracted the investor base of both countries in both issues. More than 1,000 retail investors, as well as institutional ones, took part in the transactions on both the Russian and Kyrgyz sides.
This groundbreaking achievement is a testament to the growing economic cooperation between Kyrgyzstan and Russia, and bodes well for the future of financial investments in the region.
