Deputy of the Parliament of Kyrgyzstan Dastan Bekeshev provided details about the initiative of the Cabinet of Ministers of Kyrgyzstan to issue sovereign bonds for $1.7 billion. He wrote about this on his Telegram channel.
According to him, the Cabinet intends to raise $1.7 billion through the issue of Eurobonds. This project will be considered at a meeting of the parliamentary committee on budget, economic and fiscal policy.
The MP listed the main conditions for the issue of sovereign bonds:
Currencies: som, offshore Chinese yuan, US dollar, euro, Hong Kong dollar, UAE dirham.
Bond face value: not less than the equivalent of $100.
Circulation period: up to 10 years.
Coupon payments: once or twice a year.
Repayment: either one-time at the end of the term, or according to the depreciation scheme.
Issue structure: determined by the issuer taking into account market conditions and investor demand.
Service costs: up to 1 percent of the issue amount from the state budget.
Dastan Bekeshev added that the money is to be used for energy, infrastructure and socially significant projects. He noted that the project lacks a clear breakdown of how the funds will be used.
Earlier, Minister of Economy and Commerce Bakyt Sydykov announced that Kyrgyzstan plans to issue sovereign bonds for the first time in its history for $1.7 billion.
