(AGENPARL) – METRO MANILA mer 26 aprile 2023 MANILA, PHILIPPINES (26 April 2023) — The Asian Development Bank (ADB) has raised 15.6 billion Kazakhstan tenge (KZT) (around $34 million) from two local-currency gender bonds issued simultaneously in onshore and offshore markets.
The proceeds will be used to finance ADB’s Gender Equality in Housing Finance project that aims to expand the lending operations of Housing and Construction Savings Bank of Kazakhstan (Otbasy Bank) for affordable residential mortgage loans to women borrowers, primarily in rural areas.
Due to strong investor demand, ADB decided to tap the onshore and offshore bond markets simultaneously, in an unusual step to issue two separate bonds to finance a single project disbursement.
The KZT13.3 billion onshore bond is denominated and settled in local currency and is listed on the Kazakhstan Stock Exchange; while the KZT2.3 billion offshore bond is denominated in Kazakhstan tenge and settled in US dollars, with ADB managing the currency conversion of the proceeds. This bond is listed on the Luxembourg Stock Exchange.
Both bonds feature a 7.5-year bullet maturity, redeeming in December 2030, with the offshore issue managed by HSBC and the onshore issue by Tengri Partners.
“ADB’s local currency operations continue to grow in Kazakhstan, not only in terms of volume but also in terms of sophistication,” said ADB Treasurer Pierre Van Peteghem. “Simultaneously raising local currency funding in two market segments is not always easy, but we dedicate time and energy in our relations with investors to allow us to generate such opportunities.”
“We are delighted to partner with ADB to support their local currency lending program in Kazakhstan that delivers affordable residential mortgage loans to female professionals in rural areas of the country,” said Record Emerging Market Sustainable Finance Fund Chief Investment Officer Dmitri Tikhonov. “This transaction fulfills our ambitions to invest in sustainable local currency instruments that deliver transparent and measurable impact without the hard currency burden on local communities. We congratulate ADB on this initiative and look forward to a long-lasting partnership on currency solutions that promote greater inclusion and long-term sustainable growth.”
ADB has issued about $14 billion in thematic bonds to support education, gender, health and water projects as investors allocate more funds to environment, social, and governance goals. ADB is a regular borrower in the mainstream international bond markets but has also led issuances in developing Asian countries as part of 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.