Eurobonds are more of an image project for Kyrgyzstan, as the interest rates are high

The Ministry of Finance of Kyrgyzstan continues to work on entering the international capital market with placement of Eurobonds for up to $1.7bn. This was announced by the head of the Ministry of Finance Almaz Baketaev at a press conference, commenting on the country's plans to support the energy sector.

The preparation process takes considerable time and requires a cautious approach, he said. One of the key reasons is Kyrgyzstan's low country rating, which directly affects interest rates on bonds.

‘Today we have a low country rating, and it is because of this that interest rates will be high. The initial rate is determined at 7 per cent,’ the minister said.

He also emphasised that investors are guided by the assessments of international rating agencies such as Moody's, Fitch and S&P, which shape the perception of Kyrgyzstan in the market. For the successful placement of Eurobonds, the Ministry of Finance has been working with consulting companies such as CT Group and Open Gamer for more than two years, as well as holding meetings with potential investors.

‘Last year we held road-shows, meetings with investors on stock exchanges in China, Europe, as well as in New York and Boston. There is indeed interest in our country, and we are actively engaged in dialogue with international financial structures,’ - said the head of the Ministry of Finance.

As for the amount of the placement, the Minister explained that it is determined within the legal restrictions and the existing level of the state external debt.