The Asian Development Bank (ADB) has issued its first bond denominated in Kyrgyz som (KGS), raising KGS 427.5mn ($5mn) in an offering designed to support micro and small enterprises (MSEs) in the Kyrgyz Republic. The three-year bond, issued under ADB’s Global Medium-Term Note Program, carries a 10.5% coupon rate and is settled in U.S. dollars, offering investors a stable return while mitigating currency risk for ADB-funded projects.
Standard Chartered Bank arranged the bond, which was fully subscribed by Record Currency Management, marking a key step in ADB’s commitment to providing local currency financing across its developing member countries. The funds raised will support ADB’s project to expand access to affordable financing for Kyrgyz MSEs, with at least 40% earmarked for women-led or owned businesses. The project will be implemented through Kompanion Bank, a local institution with extensive experience in reaching rural areas and supporting women entrepreneurs.
ADB Assistant Treasurer Jonathan Grosvenor highlighted the significance of the bond issuance, saying, “ADB’s maiden Kyrgyz som bond further expands our local currency footprint and builds on our efforts to deliver foreign exchange risk mitigation solutions in all of ADB’s developing member countries.”
This issuance reflects ADB’s broader strategic focus on fostering local currency financing across Central and West Asia. In recent years, ADB has introduced bonds in currencies like the Armenian dram, Azerbaijani manat, Georgian lari, Kazakh tenge, and Uzbekistani sum, enhancing financial resilience and economic stability within the region.
Renata Kreuzig, Fixed Income Portfolio Manager at Record Currency Management, expressed pride in supporting ADB’s local currency initiative.
“We are delighted to partner once again with the Asian Development Bank on its inaugural Kyrgyz som-denominated note issuance that supports inclusive growth, gender equality, economic resilience, and the development of the local currency market in the Kyrgyz Republic,” she said. “The transaction 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.”
Since its establishment in 1966, ADB has aimed to build a prosperous, inclusive, resilient, and sustainable Asia-Pacific region, with a commitment to eradicating extreme poverty. This latest bond issuance represents ADB’s dedication to inclusive economic growth and gender equality, reinforcing the institution's role as a leading financial supporter in the Kyrgyz Republic and beyond.
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