Published
10/17/2025, 10:06Kyrgyzstan has allocated the proceeds from its debut Eurobond issue to strengthening financial stability and replenishing reserves. This was announced by Finance Minister Almaz Baketaev at a meeting with Moody's Managing Director David Eldrich.
According to the minister, the $700 million received has been allocated to three key areas.
Approximately 10 billion soms were used to purchase gold. A total of 29,528 ounces, or almost a tonne of gold (918.4 kilograms), was purchased. Another 24 billion soms were placed in deposit accounts and, finally, 26 billion soms were allocated in the form of budget loans at 6% per annum. The income received from placing the money is accumulated in the public debt mitigation account — it will be used to service external debt.
It should be recalled that in May this year, the debut issue of Eurobonds worth $700 million was successfully carried out. Demand for them exceeded supply threefold. We would add that government securities are placed for five years, and their coupon yield is 7.75%.
Moody's had previously upgraded its outlook on Kyrgyzstan's sovereign rating from ‘Stable’ to ‘Positive’, confirming the rating at B3 and noting the high economic growth of 11.5% in January-July.
