The Asian Development Bank (ADB) has issued two-year «green» international bonds on the Kazakhstan Stock Exchange (KASE), totaling approximately $14.5 million, with a weighted average coupon rate of 13.94% per annum, according to a statement from KASE.
During the subscription process, six participants submitted 10 bids to purchase ADB bonds. Demand exceeded supply by 76%. Participants expressed interest in bonds with coupon rates ranging from 13.85% to 14.1%.
The bank accepted six bids from four participants, placing bonds worth approximately $14.5 million at a coupon rate of 13.94%. Notably, 77.1% of the issued bonds were purchased by banks, while 22.9% were acquired by other institutional investors. The subscription took place on Jan. 14, with settlements finalized on Jan. 20. The ADB initially planned to float the bonds at an approximate cost of $1.80 each, but the final details of the bond pricing (whether at par, below par or above par) were not specified in the latest statement.
On Jan. 17, Kazakhstan’s National Bank decided to maintain its base rate at 15.25%. This rate is used by the regulator for lending, including to second-tier banks.
Between 1994 and 2024, the ADB financed approximately $7 billion worth of projects in Kazakhstan. One of the most notable initiatives was the bank’s contribution to the funding of the Western Europe-Western China international transit corridor, which runs through Kazakhstan.
During a meeting with ADB President Masatsugu Asakawa last November in Astana, Kazakhstan’s President Kassym-Jomart Tokayev highlighted decarbonization, reducing the economy’s carbon footprint, as a key focus of collaboration between Kazakhstan and the bank. In response, Asakawa reaffirmed ADB’s commitment to working closely with Kazakhstan, including supporting major projects to modernize infrastructure, enhance social services and strengthen the country’s investment climate.
The ADB has been actively involved in lending to energy projects. Specifically, the bank participated in an international consortium that financed the conversion of the Almaty Combined Heat and Power Plant-2 (CHP-2) from coal to natural gas. Yerlan Kirkinbayev, CEO of Almaty Electric Stations JSC, a subsidiary of Samruk-Energy that operates the Almaty CHP-2, announced in 2023 that 80% of the funding for the plant’s upgrade would be provided by a consortium including the European Bank for Reconstruction and Development (EBRD), the Development Bank of Kazakhstan (DBK), a subsidiary of Baiterek Holding, and the ADB.
