Astana International Exchange (“AIX”, “Exchange”) is pleased to announce that on September 6, 2023, BI Development, one of the largest real estate developers in Kazakhstan, registered a coupon bond program. The company placed the first tranche of securities in the amount of $13.5 million due in September 2024 and 8.5 per cent s.a. coupon. The nominal value of one bond is $100.
Jusan Invest JSC and Halyk Finance JSC acted as joint bookrunners of BI Development bonds issue.
Assel Mukazhanova, CEO of the AIX, noted:
“We are pleased that BI Group has chosen the AIX as the main platform to raise financing for its subsidiaries. This is yet another successful program registered by BI Development on the AIX exchange. The placement has demonstrated strong interest of local retail investors in debt instruments of reliable Kazakh issuers.”
Ruslan Embergenov, CFO of BI Development, said:
“Since 2020, BI Development has been actively developing internationally, in particular, in the Republic of Uzbekistan. We see great potential in Uzbekistan and the funds raised are planned to be invested in new projects there. We are glad that the market participants trust BI Development and our strategy and we thank the teams of AIX, Jusan Invest and Halyk Finance for their highly efficient work.”
Timur Salimov, CEO of Jusan Invest noted:
“One of the key objectives of Jusan Invest is to develop the brokerage market in Kazakhstan and to promote retail investing. We offer our clients a variety of instruments for capital accumulation and portfolio diversification. We are proud to partner with leading issuers and believe that BI Development is a shining example of an outstanding company in its industry”.
Roman Asilbekov, deputy CEO of Halyk Finance noted:
“The successful placement of BI Development's bonds demonstrates the continued interest of Kazakh retail investors in high yield debt instruments. Halyk Finance is very pleased to cooperate with BI Development, one of the largest construction companies in Kazakhstan, and congratulates the company on the successful placement of bonds at comfortable pricing parameters in the current environment of high rates on the debt capital market. We thank BI Development for their trust and look forward to further long-term cooperation”.
The investment attractiveness of BI Group is based on its stable performance in construction and engineering in Kazakhstan for over 28 years. BI Group has a broad experience of issuing bonds since 2021, with successful repayment of liabilities.
Nurlan Ongarbayev, Director of Corporate Finance of BI Development said:
"On the first day of the issue alone half of the outstanding securities have been sold. Bonds with fixed high income and coupon payments every 6 months are an excellent alternative to traditional investments, such as deposits with interest rates of no more than 1% per annum or shares with high volatility. Our investors value not just the high yield, but also the reliability and solid reputation of BI Group, a well acknowledged brand with excellent market understanding and proven business experience".
AIX was formed in 2017 within the Astana International Financial Centre development framework. AIX shareholders are AIFC, the Shanghai stock exchange, the Silk Road Fund, and NASDAQ, which also provides the AIX trading platform. The exchange operates within a regulatory environment based on the principles of English Law, thus providing a reliable investment environment. The mission of AIX is to develop an active capital market in Kazakhstan and the region by providing clear and favorable conditions for attracting financing to private and public businesses. AIX develops special segments for mining companies as well as infrastructure projects under the Belt and Road initiative. More details: www.aix.kz
BI Development was founded in 2001 as a subsidiary organization of BI Group Holding. The main activities of BI Development are construction of housing, commercial premises, as well as service maintenance of the constructed objects.
The Astana International Financial Centre (AIFC) is an independent jurisdiction that started (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan's economy. https://aifc.kz/