Bank of Asia CJSC issued the second private issue of social bonds in the Kyrgyz Republic market in 2024.
The project covers the Sustainable Development Goals (SDGs): #1 (poverty eradication), 5 (gender equality), 8 (decent work and economic growth), 10 (reducing inequality). This initiative is part of the implementation of a number of government programs of the National Development Strategy of the Kyrgyz Republic for 2018-2040, the National Development Program of the Kyrgyz Republic until 2026, the Business Development Program of the Kyrgyz Republic until 2026, contributes to the development of the stock market, increasing the volume of ESG bonds, support and business development of entrepreneurs.
The project complies with international ICMA standards. The Bank has key policies in the area of social financing, gender policy, an ESG committee, etc.
Closed (private) placement of social bonds is offered to a limited number of investors, not on the open market. Such bonds have a special social orientation and are issued to finance projects that bring public benefits, development of health care infrastructure, education, environmental programs or support of vulnerable population groups.
Features of private placement of social bonds:
– Limited range of investors (banks, insurance companies, pension funds, etc.);
– Flexibility of conditions (in terms and rates);
– Quick placement;
– Secrecy and confidentiality;
– Social focus (on poverty alleviation program, increasing access to education, building affordable housing, etc.);
– Regulation.
The purpose of social bond program of Bank of Asia CJSC is to develop entrepreneurs’ business, improve the welfare and livelihood of women, create jobs, and improve working conditions. Financed projects should have a positive socio-economic effect.
The raised resources will be used to issue loans for the development of small and medium-sized enterprises (SMEs) in manufacturing, agriculture, services and other sectors:
- Industry;
- Mining and processing of raw materials,
- Green Finance (including ESG);
- IT, E-commerce;
- Transportation and Logistics,
- and other sectors consistent with the Bank’s goals and objectives.
Parameters of social bonds
- Type of securities: registered;
- Form of issue: book-entry, in the form of records on accounts;
- Method of placement of bonds: Closed (private).
- Number of securities intended for closed (private) offering 100 000 (one hundred thousand) copies;
- Nominal value of one bond: 1 000 (one thousand) KG soms;
- Issue volume: 100 000 000 (one hundred million) KG soms;
- Placement start date – from the moment of bonds issue registration with the authorized state body;
- Placement end date – within 1 year from the start of bond placement;
- Bond circulation period: 60 (sixty) months;
- Bond yield: 11 % p.a;
- Payment of interest – quarterly.
Place and procedure for familiarization with the prospectus:
Bank of Asia CJSC
Bishkek Free Economic Zone, 303, Chyngyz Aitmatov pr., Bishkek, Kyrgyz Republic
Tel.: +996 (312) 55-00-01, Fax: +996 (312) 55-01-82,
e-mail: [email protected], website: www.bankasia.kg
Financial Company SENTI LLC
219 Chui pr., 9th floor, Bishkek, Kyrgyz Republic
(inter. Togolok Moldo)
Tel.: +996 (312) 61-45-89, 61-46-21, Fax: +996 (312) 61-00-25
e-mail: [email protected]; website: www.senti.kg