Capital Leasing Group Raised $3 Million on the Stock Exchange

Demand for the company’s bonds exceeded the supply

The bond placement on KASE allows the company to support financially its leasing deals. Freedom Finance was an underwriter and bookrunner of the deal.

According to Freedom Finance representatives, Capital Leasing Group had planned to raise roughly $2.3 million initially. However, given the high demand (about $4.2 million) the company has decided to increase the issuing by 30%. 

According to Sergey Grishin, founder of Capital Leasing Group, these bonds are nominated in tenge and with an interest rate of 18% might be considered as high-yielding assets.

«The vast majority of investors who have shown their interest in our bond issuing are local players. They were attracted by the opportunity to get a high profit. We are going to use this money to finance our leasing operations,» he told Kursiv. 

The total amount of issuing was about two million bonds with a nominal value of one bond in 1000 tenge ($2.35). The maturity date under the deal is January 28, 2024, with an interest rate of 16% per annum. The warrant payment should be made twice a year.

KASE data shows that there were 224 orders for 1.321 billion tenge in total ($3.1 million). However, only 221 of them for $3 million were approved by the system. As a result, the issuer placed 1.321 million bonds by $2.32 each with a yielding rate of 18%. The share of individual investors in the deal was about 97.2% vs. just 2.8% of professional participants.

Capital Leasing Group was established in 2020. This is a fast-growing leasing company, which is one of the main actors in the Kazakhstani market. It offers small and medium-sized businesses a wide range of services in the field of financial and operational leasing.

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