ADB Will Assist Kazakhstan to Fight Coronavirus

Asian Development Bank is ready to provide help with equipment and training

Photo: Shutterstock

On March 25, 2020, Ruslan Dalenov, head of the Kazakhstani Ministry of National Economy, met with Masatsugu Asakawa, president of the Asian Development Bank (ADB), to discuss measures on coronavirus prevention. The ADB is ready to assist Kazakhstan in the fight against the pandemic.

“ADB is committed to supporting Kazakhstan in its fight against COVID-19 and to helping limit the impact of the pandemic on its citizens. ADB’s assistance can include budget support, health sector support, and technical assistance to help maintain social cohesion and retrain the labor force toward sectors likely to emerge in the post-COVID-19 economy. ADB is also keen to revisit its portfolio and reallocate funds to better fit the government’s priority needs,” Asakawa said.

Besides the terrible impact of COVID-19 on public health, society and economy, lower oil prices are also suffocating all kinds of economic activities, trade, and employment.

At the meeting, Dalenov and Asakawa discussed possible assistance to Kazakhstan in obtaining medical equipment and employment support, as well as economic diversification in order to provide the country with more independence from commodity exports and to boost agriculture, IT sectors and E-commerce.  

As of March 25, 2020, there were reported 79 cases of new coronavirus in Kazakhstan.
 

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Uzbekistani Bank Has Placed Eurobonds On LSE for the First Time

Demand for the bank’s securities turned out to be high

Фото: Shutterstock.com

Uzbekistani joint-stock commercial bank Uzpromstroybank placed international bonds on the London Stock Exchange (LSE) for the first time on November 25, the bank’s press office says.

“JSCB Uzpromstroybank issued international bonds on the London Stock Exchange, thus becoming a participant of the international capital market. Eurobonds worth $300 million were highly regarded by the investors,” the bank’s press release says.

Demand for the bank’s securities turned out to be high. The initial interest rate for the five-year international bonds was set at 6.5%, and within one and a half hours, order volume reached $300 million, equaling the entire issue volume. By 1:05 p.m., order volume reached $1.2 billion, translating to an oversubscription by four times. At the same time, the interest rate of the bonds was lowered by 0.125% to 6.375%.

“Thanks to such high demand, the deal was sufficiently profitable and was closed at 5:00 p.m. London time with a coupon rate of 5.75%,” Uzpromstroybank’s press release noted.

International investment banks such as JP Morgan, Citigroup, Commerzbank, and Raiffeisen Bank served as financial consultants of the deal on the issue of corporate Eurobonds.

JSCB Uzpromstroybank is one of the oldest financial institutions in Uzbekistan. The bank was founded in Tashkent in 1922 as the Central Asian office of Promyshlennyi Bank. Presently the bank lends to large investment projects, basic sectors of the economy, and small and private businesses. Major shareholders of the bank are the Finance Ministry of Uzbekistan and the Fund of Reconstruction and Development of Uzbekistan (together they own 82.18% of the shares), as well as a partially government-owned company group (national holding company Uzbekneftegaz, JSC Uzbekenergo, JSC Uzkimyosanoat, and JSC Uzbekiston Temir Yullari). An unknown foreign investor owns 0.48% of the bank’s shares. Another 3.98% are owned by other entities and individuals.

In August 2018, the bank served 960,500 clients. According to the results of the third quarter of 2019, the bank’s net profit was more than 327 billion Uzbekistani som ($34.4 million). Uzpromstroybank has a credit rating of ‘BB-’ and the outlook is stable, according to the international rating agency Fitch Ratings.

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