Kazakhstan Stock Exchange Holds Special Trading Session for Social Bonds Offering

Strategic Insights -

The Kazakhstan Stock Exchange (KASE) hosted a special trading session for the offering of social bonds by "Otbasy bank" house construction savings bank JSC, a subsidiary of Almaty-based "Otbasy bank." The session, which took place on August 13, 2023, aimed to raise KZT 50 billion through the issuance of bonds with a coupon rate of 18% APR.

The offering was met with significant interest from institutional investors, with a total of 89 orders submitted during the session. The bid-to-ask ratio stood at 29.5%, indicating a competitive market for the bonds. The weighted average coupon rate on orders submitted was 18%, with a minimum and maximum rate of 18% and 22%, respectively.

Key Takeaways:

  • The special trading session was held on August 13, 2023, to offer social bonds with a coupon rate of 18% APR.
  • The offering aimed to raise KZT 50 billion, with a total of 101 orders submitted during the session.
  • The bid-to-ask ratio stood at 29.5%, indicating a competitive market for the bonds.
  • Institutional investors dominated the market, with a 64.5% share of the total volume of active orders.
  • The weighted average coupon rate on orders submitted was 18%, with a minimum and maximum rate of 18% and 22%, respectively.
  • The offering was executed with a 98.2% volume of orders executed, with a total of 94 orders executed out of 101 submitted.
  • The transactions were executed by the end of settlements based on the results of the trades, with institutional investors accounting for 89.3% of the total volume of placements.

Statistics:

  • Number of participants: 5
  • Number of orders submitted: 101
  • Volume of active orders: KZT 14,728.8 million
  • Bid-to-ask ratio: 29.5%
  • Weighted average coupon rate on orders submitted: 18%
  • Minimum and maximum coupon rate: 18% and 22% respectively
  • Total volume of orders executed: 98.2%
  • Number of orders executed: 94
  • Number of participants, whose orders were executed: 6
  • Number of participants' accounts: 88

Sources:

  • Kazakhstani Stock Exchange announcement, 8/13/2023
  • Data of Central Securities Depository JSC (Almaty)