TF International Securities Group Limited (“TF International”) together with China CITIC Bank International Limited, Citigroup Global Markets Limited and Oppenheimer & Co. Inc announced the successful assistance in the Kyrgyz Republic's issuance of a 5-year USD benchmark international bond (represented by the Cabinet of Ministers of the Kyrgyz Republic acting through the Ministry of Finance of the Kyrgyz Republic). Originally targeting an issuance size of approximately USD 500 million, the transaction saw overwhelming market demand during bookbuilding, with peak orders exceeding USD 2.1 billion (including USD 50 million underwriter's order) from over 130 investors. The final issuance size was upsized to USD 700 million with a coupon rate of 7.75%. This fully reflects the global capital market’s strong confidence in the Kyrgyz Republic’s economic development prospects and TF International’s cross-border financing capabilities.Central Asia’s Ice-Breaking Sovereign Bond Debut Pioneers New Cross-Border Financing Paradigm
This landmark transaction marks the first USD bond issuance by a Central Asian sovereign issuer in international capital markets, and represents a milestone for TF International in the field of Central Asian sovereign bond underwriting. By leveraging its global investor network and localized service strengths, TF International together with the other Global Coordinators efficiently managed cross-time-zone bookbuilding and precisely captured the optimal market window. This enabled Kyrgyz Republic’s successful debut in the international USD bond market with oversubscription, laying a solid foundation for the nation to diversify its future financing channels.
The bond issuer, the Kyrgyz Republic (rated B+ by S&P, B by Fitch, and B3 by Moody’s), will utilize the proceeds to support its national budget, with a focus on financing hydroelectric power projects and infrastructure projects. The Kyrgyz Republic, as one of the earliest countries to support and engage in the Belt and Road Initiative, has seen increasingly close economic and trade relations with China. TF International signed a memorandum of understanding with the Kyrgyz Republic Ministry of Finance earlier, becoming the first Hong Kong-based Chinese securities firm to establish an official partnership with The Kyrgyz Republic Ministry of Finance.
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Mr. Amanbaev Umutzhan Mominovich, Deputy Minister of Finance–Director of the Central Treasury, Ministry of Finance of The Kyrgyz Republic, expressed his gratitude to the Global Coordinators for the efforts and successful closing of this debut transaction. He said: "This is our first step on the international debt capital markets. We are going to maintain our presence and become a frequent issuer for further development of our country’s debt profile and meet the needs of The Kyrgyz Republic economy. This inaugural bond issuance has not only optimized the national debt structure but also raised capital at competitive rates, providing strong support for the nation's critical development projects. The oversubscription of this issuance fully demonstrates the international market's recognition of Kyrgyzstan's economic prospects and sovereign credit.
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