Red Petroleum has become the first oil trading company in Kyrgyzstan to enter the stock market. The Red Petroleum team announced about the issue of the debut bond issue today. 

The company placed bonds totalling KGS 100 million with a yield rate of 18% per annum. The circulation term of the securities will be 3 years, and the nominal value of one bond is -1 thousand KGS.

According to the company, the decision to place securities is due to the growing interest in the stock market of Kyrgyzstan and the desire to diversify sources of financing.

‘We occupy more than 50% of the fuel and lubricants market in the country, we are present in all regions and have ambitious plans. For us, entering the KASE is a strategic step that will allow us to attract additional investments and strengthen our position in the market,’ said Ulan Toyaliev, Head of Investment Department at Red Petroleum.

The company plans to use the raised funds to modernise its infrastructure and build charging stations in the regions.

Interest in the first oil trading company on the stock market did not wait long, as Maerim Askarbekova, director of financial company Senti, noted that before Red Petroleum made the final decision to enter the market, many people were already calling and asking questions. 

‘I think other oil trading companies will follow Red Petroleum, because meetings have already been held with all of them, and not once. But the Red Petroleum team were the first to mature and the first to speak. We had a similar situation with the microfinance sector, when Salym Finance was the first to come forward, although all other companies received offers, and the rest of the companies pulled up en masse after them,’ said Meerim Askarbekova. 

The company expects that the bond placement will attract the attention of not only local but also foreign investors, especially in connection with the upcoming launch of the EAEU agreement on the admission of brokers to the stock markets of the member states.

Moreover, the company plans to list on the Kyrgyz Stock Exchange in the near future, which will make their securities even more attractive.