The Russian-Kyrgyz Development Fund announced a pilot bond issue worth $20 million

The Russian-Kyrgyz Development Fund has announced the launch of its first bond issue. Artem Novikov, chairman of the fund's board, spoke about plans for a pilot closed issue during a business breakfast with representatives of the financial sector.

According to him, the Fund has completed the preparation of the regulatory framework for entering the borrowing market and has worked out the key legal mechanisms for issuing debt instruments.

“A lot of work has been done to improve legislation and expand the opportunities for development funds and financial institutions to issue bonds on both domestic and foreign markets. In the near future, we will hold additional consultations with the National Bank, which will be involved in ratings and other procedures,” Novikov said.

Despite the continuing restrictions on international financial markets, the Fund, according to him, is ready for its first placement.

“Today, we are ready to announce a pilot closed issue of the first bond issue of the RKFR in the amount of $20 million. The placement will take place in the near future. The rate will be 3.5%,” said the head of the Fund.

The RCF emphasized that the pilot issue will form the basis for the creation of sustainable sources of long-term financing and will serve as a signal to other financial institutions about the possibility of attracting resources through the capital market.