Wednesday September 21 2016
News Source: Global Exchanges
Focus: Fixed Income
Type: General
Country: Kazakhstan
Link: http://www.kase.kz/files/press/en/16_09_05_Sektor_kommer_oblig_eng.pdf
On 31st August 2016, Kazakhstan Stock Exchange (KASE) approved the Rules of Securities Admission to the “commercial bonds” sector. According to these Rules, as of 5th September 2016, commercial bonds are now available on the KASE official list.
The new sector is allocated for the short-term bonds of the companies having KASE listing experience and those with securities on its official list. Any potential issuer is required to meet three basic criteria:
- To have been operating for at least three years;
- To have no defaults on any previously issued bonds within the last three years; and
- To be recognised as a larger corporate business, i.e. have an average annual income for the preceding three years of at least KZT6.36 Billion.
The commercial bonds sector, unlike the primary debt securities sector, offers simplified listing requirements, lower listing fees, and a minimum package of entry documents. The listing decision is taken by the Exchange’s Management Board.
The commercial bonds sector was opened mainly as a reaction to the new rules of the National Bank, which entered into force in July 2016, and regulate the general rules for the issue, placement and circulation of local bonds.
Click on the link above for further details.