The National Bank, acting as the investment portfolio manager for the Unified Accumulative Pension Fund (UAPF), invested nearly $188 million in debt securities issued by Otbasy Bank and Halyk Bank in July.
As of Aug. 1, the total amount of UAPF assets entrusted to the National Bank reached just over $41 billion. The value of the bonds is $1.8 billion, representing a 6.34% increase since the beginning of the year. These bonds make up 4.49% of the total portfolio.
According to the release on pension asset investment management,
«During the review period, $187.8 million worth of Otbasy Bank and Halyk Bank bonds were purchased, yielding a weighted annual average of 13.69%. There were no sales or redemptions of Kazakhstani bank bonds. As of the reporting date, the weighted annual average yield to maturity was 10.08%.»
In addition, in July, the National Bank acquired $588 million in U.S. Treasury bonds and $213 million in Kazakhstani government securities, bringing the total value of purchased financial instruments to $989 million.
In early August, Nurlan Abdrakhmanov, deputy head of the Agency for Regulation and Development of the Financial Market (ARDFM), stated that out of the $1 billion allocated from the UAPF to purchase bank bonds, $81 million was spent on securities from «one of the banks.» The funds were allocated to finance a major business project. Banks are expected to raise an additional $209 million in the third quarter.
In April, the National Bank reported plans to invest $1 billion of pension assets into bank bonds to boost business lending. To qualify, financial institutions must have a credit rating of «B» or higher and a minimum equity of $125 million. These institutions are also required to lend to businesses by issuing bonds at market rates with maturities of no more than seven years.
There are strict limitations on how these funds can be used. Lending for housing construction and transactions involving residential and commercial real estate — such as buying, selling and renting — is prohibited, which directly affects Otbasy Bank’s activities. Additionally, lending for wholesale and retail trade, individual loans (including mortgages and consumer loans), financial services, consulting, shopping mall operations and the refinancing of existing loans is not allowed.
