09 Sep 2021
On September 8, 2021, KMF Microfinance Institution (KMF) carried out an initial placement of its bonds (MFKMb1, ISIN KZ2P00007883) in the amount of 7bn tenge at par with a yield of 13% per annum. Thus, KMF raised 7.320bn tenge. The placement was underwritten by Centras Securities JSC. During the book-building process, the total market demand fully satisfied the interest in the offer from institutional investors, such as insurance companies, mutual funds, limited liability partnerships and individuals. The number of investors was 17.
The placement cost became one of the lowest yield-wise among similar placements by issuers from the microfinance sector, and came at the level of the yield curve of issuers from the commercial banking sector. This once again confirms the reliability and sustainability of KMF business model and reflects the high confidence of the investment community in the debt obligations of the largest microfinance institution in Kazakhstan.
“The results of the first KMF placement demonstrate to all traders the great potential of our company, the advantages of the MFI’s business model focused on long-term partnerships with micro-entrepreneurs and their development. I am sure that this debut deal will mark the beginning of the effective cooperation of local investors with KMF as a fresh and efficient issuer. For us, entering the stock exchange has become a successful discovery of new funding sources that will help us further develop our model of financing entrepreneurs in Kazakhstan,” said Olga Yugay, CFO of KMF.
“We are very happy with the successful entry of a quality issuer as KMF into the stock market of Kazakhstan. The initial plan was to place bonds for 5bn tenge, but a week before the date of placement we decided to increase the volume of placement to 7bn tenge, due to high demand from investors. Our investors showed great interest in KMF’s bonds – the company’s bonds were oversubscribed.
This successful entry of KMF to KASE will allow KMF to diversify its funding base and begin its history of cooperation with the public debt capital market," said Murat Akinov, CEO of Centras Securities.