Bishkek (TDI): Kyrgyzstan has successfully issued its first Eurobonds on the London Stock Exchange, raising $700 million at an annual interest rate of 7.75 percent with a five-year maturity.
Kyrgyz Ministry of Finance said that that investor demand for the debut issuance surpassed the offer by a factor of three, reflecting strong global confidence in Kyrgyzstan’s economic prospects.
Over one hundred investors from the UK, the US, and different Asian nations participated in the placement.
The high demand confirms increasing confidence in the country’s macroeconomic policy, the boosting of its financial system, and the government’s commitment to transparency, fiscal discipline, and global financial integration, the Ministry said.
Former Prime Minister Akylbek Japarov highlighted in a statement the historical importance of the move. Kyrgyzstan had been the last state in Central Asia not to issue Eurobonds, he noted, and for many years such an operation appeared unattainable. The successful launch, he continued, was the result of sustained work across all levels of government, improving macroeconomic indicators, increasing investor trust, and elevating Kyrgyzstan’s sovereign credit rating.
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Japarov proposed that the $700 million raised be directed toward strategically significant sectors, including energy and mineral resources.
He particularly recommended funding the construction of a new coal-fired thermal power plant in Naryn region and a power station in Chui region. He also stressed the need to develop rare earth metal deposits in Chui and Issyk-Kul regions.
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The Eurobond issuance was a central issue at the recent Bishkek International Financial Forum, which focused on innovation, digital transformation, and sustainable development in the financial sector.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight.
