ADB Launches First Bond in Kyrgyz Som, Raising $5 Million

The Asian Development Bank (ADB) successfully issued its inaugural bond in Kyrgyzstan’s local currency, raising 427.5 million Kyrgyz som, roughly $5 million.

This bond has a 10.5% coupon rate, is issued in Kyrgyz som, and will be settled in US dollars over three years.

Record Currency Management subscribed to the entire bond, with Standard Chartered Bank as the arranger.

ADB is issuing this bond as part of its Global Medium-Term Note Program, which is classified as an international bond.

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Supporting Local MSEs with Currency Risk Mitigation

The funds raised will support a project that benefits Kyrgyzstan's micro and small enterprises (MSEs).

At least 40% of the financing will support women-led or women-owned MSEs.

The ADB issues this bond as part of its Global Medium-Term Note Program, categorising it as an international bond.

This bond enables ADB to effectively manage currency risk for the project, thus enhancing the financial resilience of local businesses.

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Expanding ADB’s local currency financing initiatives 

Jonathan Grosvenor, ADB Assistant Treasurer, said, “ADB’s maiden Kyrgyz som bond further expands our local currency footprint and builds on our efforts to deliver foreign exchange risk mitigation solutions in all of ADB’s developing member countries.”

Renata Kreuzig, Fixed Income Portfolio Manager at Record Currency Management, added, “This issuance aligns with Record EM Sustainable Finance Fund’s goal to provide accessible, local currency funding to MSE borrowers, promoting inclusive growth, gender equality, and economic resilience in the Kyrgyz Republic.”

ADB, which includes 69 member countries, 49 from the region actively pursues its mission by launching strategic initiatives such as this bond issuance.

This bond issuance aims to enhance the development of Kyrgyzstan’s local currency market and support inclusive economic progress.