Eurasian Development Bank placed debut AED-denominated bond in Kazakhstan
The Eurasian Development Bank (EDB) has placed its debut AED-denominated bonds on the Astana International Exchange (AIX), becoming the first issuer of UAE Dirham bonds in Kazakhstan. A diversified pool of investors took part in the placement, including banks, funds, brokerage and investment companies out of Kazakhstan and the UAE. Freedom Finance Global acted as the lead manager for the bond placement.
The 185 million AED-denominated bond with three (3)-years maturity paying coupon of 6.5% p.a. marks a historic step in diversifying currency options for investors in Kazakhstan and beyond. The transaction marks the Bank’s first tranche under the 700 million AED programme and demonstrates the consistency of the Bank’s plans and efforts to diversify its sources and instruments of financing.
The bonds were placed through a book-building process on the AIX and were offered exclusively to qualified investors, whose growing interest in the UAE Dirhams is evident. As the currency is pegged to the US dollar, it eliminates exchange rate fluctuations. This allows investors operating in US Dollars to settle in AED without the need for additional currency hedging or incurring related transaction costs.
This issuance represents the first-ever AED-denominated bond in Kazakhstan, reinforcing the EDB’s role in expanding financial market opportunities across its member states. The transaction highlights the growing investor interest in diversified currency exposures and supports the broader strategy of strengthening economic ties between Central Asia and the Middle East.
Daniyar Imangaliev, the EDB’s Deputy Chairman of the Board stated:
“We are proud to pioneer this AED-denominated bond issuance in our headquarters country – Kazakhstan, a testament to our commitment to fostering financial innovation and deepening regional capital markets. This transaction not only broadens investment opportunities but also strengthens economic linkages between our member states and key global financial hubs, especially the Gulf States region. The interest in this debut transaction from a diversified group of qualified investors underlines confidence in the creditworthiness of the EDB and the potential of the Kazakhstan market.”
Assel Mukazhanova, AIX CEО, noted:
This milestone issuance represents the first AED-denominated bond in Kazakhstan, signaling a significant step toward greater currency diversification in the local capital market. It highlights the increasing appetite for new currencies instruments and reinforces AIX’s commitment to serving the evolving needs of both investors and businesses”.
Reference:
AIX was formed in 2017 within the Astana International Financial Centre development framework. AIX shareholders are AIFC, 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. www.aix.kz
The Astana International Financial Centre (AIFC) is an independent jurisdiction that started (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/
The Eurasian Development Bank (EDB) is a multilateral development bank investing in Eurasia. For more than 18 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. By 2025, the EDB’s cumulative portfolio comprised 305 projects with a total investment of US $16.5 billion. The Bank’s portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. The Bank’s operations are guided by the UN Sustainable Development Goals and ESG principles.
