RKFR engaged Freedom Broker as underwriter for its first currency bond issue

The Russian-Kyrgyz Development Fund is launching cooperation with Freedom Broker in the field of bond underwriting. The partnership envisages that Freedom will act as the organizer and sponsor of the fund's first currency bond loan.

The parties have agreed to cooperate in providing professional underwriting services, including setting the parameters of the issue, structuring the placement, working with investors, and promoting debt instruments on the capital market.

Given the RCF's previously announced plans to place a pilot issue of foreign currency bonds worth $20 million, the cooperation with Freedom effectively means bringing in a broker as the lead organizer and underwriter of the first loan.

The partnership is aimed at developing the domestic securities market and forming sustainable sources of long-term financing. In the context of the transition to an investment-based economic model, diversification of funding instruments is of key importance.

The use of underwriting mechanisms will increase the transparency of placements, expand the circle of potential investors, and establish market practices for the issuance of debt instruments by development institutions.