BI Development, the development subsidiary of BI Group holding, is offering Kazakhstan residents the chance to invest in dollar-denominated bonds with yields up to 7.75% per annum, reports infohub.kz.
On the Kazakhstan Stock Exchange (KASE), the company will place two dollar bond issues with tenors of two and three years, totaling $9 million. The securities will be included in the listed issues category of $15 million each. The nominal value of one bond will be just $100.
The first issue matures on September 29, 2028, with a coupon rate of 7.5% per annum, amounting to $7 million. Interest will be paid semi-annually, and the nominal value per bond is $100.
The second issue matures in 2029. The three-year bonds carry an estimated rate of 7.75%, with a volume of $2 million. The price per bond is also $100.
The final coupon, i.e., the bond yield, will be determined during trading based on investor bids. The placement will take place on September 29, and bonds can be purchased through a broker.
For comparison, the maximum rate on foreign currency deposits for individuals is 1%. From October 1, for certain types of deposits, it will increase to 2.5% per annum.
Market rates for dollar bonds in Kazakhstan range from 6% to 11% per annum, depending on the issuer's reliability and the platform. However, the minimum bond price at placement is typically above $100, and such bonds are available only to professional investors.
BI Development, the largest developer of residential and commercial real estate, is part of BI Group holding. Its majority shareholder is businessman Aidyn Rakhimbayev, whose fortune Forbes estimates at $1.1 billion. The publication ranks him ninth among Kazakhstan's wealthiest businessmen.
Earlier, Freedom Finance placed three-year dollar bonds on the AIX exchange with a rate of 8.5%.