Kyrgyzstan plans to issue sovereign bonds worth $1.7 billion for the first time in its history. The Minister of Economy and Commerce of Kyrgyzstan Bakyt Sydykov said in an interview with the Chinese media outlet China Daily after participation in the Asian Financial Forum in Hong Kong.
According to the minister, sovereign bonds will be an important step for the country to enter the international capital market. The estimated maturity of the bonds will be about 10 years.
«We consider the international capital market as an important and promising source of financing for our country. The volume of the proposed issue is about $1.7 billion, and the estimated maturity, according to previously announced data, is about 10 years,» he noted.
The minister emphasized that preparations for the bond issue include holding information events and road shows. Some of them have already taken place in Hong Kong, which Kyrgyzstan considers a key financial center in the Asian region.
«We aim to use Hong Kong’s status as a financial centre to attract more interest from investors, as well as to expand and diversify them,» the minister concluded.
Note of 24.kg news agency
Sovereign bonds are debt securities issued by the state to borrow money from investors.
The state promises to return this money after a certain period of time (for example, after 5 or 10 years) and to pay regular interest for using it. It is as if the country took out a loan, but instead of a bank, the money is provided by investors from all over the world.
Sovereign bonds are usually used to finance important projects, such as the construction of roads, schools or hospitals, or to cover other government expenses.
