BISHKEK, Kyrgyzstan, November 7. The Asian Development Bank (ADB) has issued its first-ever bonds in Kyrgyz som, raising 427.5 million som (around $5 million), Trend reports.
According to the ADB, the 3-year bond carries a 10.5 percent coupon and is denominated in Kyrgyz som, with settlement in US dollars. Standard Chartered Bank arranged the bond, while Record Currency Management fully subscribed. The ADB's Global Medium-Term Note Program issued it as an international bond.
The funds raised will fully mitigate currency risk for an ADB project aimed at supporting micro and small enterprises (MSEs), with at least 40 percent of the financing directed towards women-led or women-owned MSEs.
The project will be managed by Kompanion Bank, which has a strong presence in rural areas and extensive experience in supporting women entrepreneurs.
ADB Assistant Treasurer Jonathan Grosvenor said that the bank’s first bond in Kyrgyz som helps expand its presence in local currencies and supports its efforts to provide solutions for managing foreign exchange risk across all of ADB's developing member countries.
According to Record Currency Management Fixed Income Portfolio Manager Renata Kreuzig, the intiative fulfills the ambition of Record EM Sustainable Finance Fund to deliver affordable, local currency funding for local MSE borrowers with a positive, long-lasting impact on local communities.