News

The first issue of the CJSC MFC Alma Credit corporate bonds

CJSC MFC Alma Credit plans to place bonds for KGS 50 000 000 with a yield of 19% per annum (effective annual rate of 19.75%).

Placement of bonds on the Stock Exchange was made on June 14, 2017. The circulation period of the issue is 2 years, dividends are paid quarterly. The nominal value of exchange-traded bonds is equal to 1000 soms.

"This is the first bond issue for MFC Alma Credit. We used the example of corporate securities of other corporate issuers that were recently placed on the market as a benchmark for the new bonds. The market situation and economic feasibility were accurately assessed before the bond issue, " commented Aibek Sulaimanov, Chairman of the Board of the CJSC MFC Alma Credit.

Investing in bonds is a relatively young stream for Kyrgyzstan, nevertheless it is becoming more popular. One of the advantages of investing in bonds in comparison with other classes of assets is the income stream that can be easily calculated. Kyrgyz people can use bonds income to finance future expenditures, investing in children education, stabilizing retirement income, or providing reliable cash flow for medical care.

As noted by Aibek Sulaimanov: "Research shows that there is a certain segment in the Kyrgyz Republic that is actively interested in the securities market who has positive attitude towards getting practical experience in this area. One of our tasks now is to motivate people to make this important transition from a passive interest in the securities market to actual buying bonds. We plan to stimulate the population to engage in individual financial planning, provide people with information on the securities market in the Kyrgyz Republic, explain the most important principles of its functioning, dispel financial myths, explain the principles of risk management and warn about common mistakes."

Bonds issue details are available here