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Kyrgyzstan issues 10-year government bonds for first time

10-year government treasury bonds were issued in Kyrgyzstan for the first time, the Ministry of Finance reported.

It is noted that the first auction for the sale of bonds was held in mid-November. In total, there were securities for 300 million soms. As a result of the auction, the demand for a new type of bonds amounted to 586.52 million soms. The weighted average yield of placed bonds was fixed at 18.49 percent per annum.

Bonds were issued with the cost of one coupon of 100 soms, an interest rate of 12 percent per annum, and the frequency of coupon payments every six months. Repayment of the debt on bonds is established in the form of a one-time payment at the end of the circulation term.

«10-year bonds have been the longest in circulation state securities in Kyrgyzstan since 1993. In the future, it is planned to release them regularly. The issue of 10-year bonds was carried out within the framework of implementation of the medium-term strategy of public debt management in the Kyrgyz Republic for 2016-2018. According to it, the government will increase the share of long-term government securities,» the Finance Ministry said.

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