AIX introduces Commercial Papers as a new debt instrument
Astana International Exchange (“AIX”, “Exchange”) is pleased to announce the launch of a new instrument – Commercial Papers. The relevant changes have been introduced to the AIX Markets Listings Rules.
Commercial paper is a commonly used type of unsecured, short-term debt instrument issued by companies with proven creditworthiness and typically used for financing of the issuer’s short-term working capital needs (payroll, accounts payable, inventories, other operating expenses related to core activities of the issuer).
Renat Bekturov, CEO of AIX, stated:
“AIX provides the local business community with yet another quick and cost-effective way of raising working capital. When compared to other sources like bank loans and loans from other financial institutions, commercial papers can provide more funding at a lower interest rate. It is a flexible financial tool which can easily be adjusted to the needs of issuers.”
Commercial paper may be offered to professional (accredited) investors in any denomination. Given that offers are directed at Accredited Investors, it will be sold in lots of at least US$100,000. Other corporates, financial institutions, high net worth individuals, and money market funds are usually buyers of commercial paper.
Commercial paper is usually issued at a discount from par value and reflects prevailing market interest rates. Maturity on commercial paper may last several days, and range no longer than 365 days.
Reference:
AIX was formed in 2017 within the Astana International Financial Centre development framework. AIX shareholders are AIFC, Goldman Sachs, the Shanghai stock exchange, the silk Road Fund, and NASDAQ, which also provides the AIX trading platform. The exchange operates within a regulatory environment based on the principles of English Law, thus providing a reliable investment environment. The mission of AIX is to develop an active capital market in Kazakhstan and the region by providing clear and favorable conditions for attracting financing to private and public businesses. AIX develops special segments for mining companies as well as infrastructure projects under the Belt and Road initiative. More details: www.aix.kz
The Astana International Financial Centre The Astana International Financial Centre (AIFC) is an independent jurisdiction that started operations in 2018. In accordance with the Development Strategy until 2025, the key focus of the AIFC is to consolidate as a universal platform connecting the countries of the EAEU, Central Asia and the Caucasus. https://aifc.kz/
