Kazakhstan Housing Company raises KZT 75 billion at 16.22 per cent

Kazakhstan Housing Company raised KZT 75bn on 29 October by placing two three-year bond issues at a coupon of 16.22 per cent, the Kazakhstan Stock Exchange said in its results of the special trading sessions.

The larger issue, KZIKb47, raised KZT 50bn. Ten participants submitted 18 orders, of which 17 stayed active, for KZT 83,950.0m, or 167.9 per cent of the offering. Bids ranged from 16.05 to 16.22 per cent with a weighted average of 16.21 per cent, and 16 orders from 9 participants were filled at 16.22 per cent.

The second issue, KZIKb48, raised KZT 25bn. Twelve participants submitted 22 orders, 19 of them active, for KZT 39,855.5m, or 159.4 per cent of the offering, the exchange said. Bids ranged from 16.15 to 16.22 per cent, the weighted average was 16.22 per cent, and 18 orders from 10 participants were filled. Across both issues active orders came to KZT 123,805.5m, about 1.65 times the KZT 75bn placed, on the Data Desk's addition. Both issues cleared at the highest coupon bid.

The buyers differed. Banks took 40.0 per cent of the KZT 50bn issue, other institutional investors 34.9 per cent, other legal entities 17.0 per cent, broker-dealers 8.1 per cent and individuals less than 0.1 per cent. In the KZT 25bn issue other legal entities took the largest share, 40.8 per cent, ahead of other institutional investors with 36.7 per cent, banks with 20.0 per cent, broker-dealers with 2.2 per cent and individuals with 0.3 per cent.

The coupon sits 47 basis points above the base rate. The National Bank of Kazakhstan cut the rate to 15.75 per cent on 23 October, with a corridor of plus or minus 1 percentage point, as annual inflation fell for a twelfth month to 9.3 per cent in September. It was the fourth cut since June, and the committee's own guidance points to a pause.

Both issues have a face value of KZT 1,000 a bond, run from 29 October 2026 to 29 October 2029 on a 30/360 basis and trade on the exchange's main board. Settlement was completed in full, the exchange said, citing the Central Securities Depository. Shares are the exchange's; the combined order total and its ratio to the amount placed are Data Desk calculations.