BAKU, Azerbaijan, Feb. 11
By Nargiz Sadikhova - Trend:
The Asian Development Bank (ADB) raised 8.4 billion Kazakh tenge (about $20 million) from the first gender bond issued in Kazakhstan, Trend reports citing the ADB.
Proceeds of the bond will help finance the 38 billion tenge ($90.9 million) Promoting Gender Equality in Housing Finance project that aims to expand the lending operations of the Housing and Construction Savings Bank of Kazakhstan (Otbasy Bank) and promote affordable residential mortgage loans for women borrowers in largely rural areas. The ADB loan is the first external borrowing of Otbasy Bank and is guaranteed by the Ministry of Finance of Kazakhstan.
The bond pays a 10.15 percent semi-annual coupon and features a 10-year bullet maturity, redeeming in December 2030. The bond sets a new benchmark as the longest-maturity local currency bond issued by any multilateral development bank in Kazakhstan.
Auctioned and listed on the Kazakhstan Stock Exchange, the offering was oversubscribed and sold to domestic institutional investors. The bond issue was arranged by Tengri Partners. ADB is also preparing to issue another tenge bond to finance the CAREC Corridors 1 and 6 Connector Road Reconstruction Project.
ADB has issued more than $3.2 billion in thematic bonds to support education, gender, health, and water projects as investors allocate more funds to environment, social, and governance (ESG) goals.
ADB is a regular borrower in the mainstream international bond markets but has also led issuances in developing Asian countries as part of its efforts to promote local currency bond markets as an alternative to bank lending.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members - 49 from the region.
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