Transcript Заголовок слайда отсутствует

CORPORATE BONDS MARKET
OF KAZAKHSTAN
Azamat Joldasbekov
President / Kazakhstan Stock Exchange (KASE)
Building Domestic Debt
Markets Conference
Budapest, May 12-14, 2003
The Most Successful Sample
of Corporate Bonds Market in CIS
Kazakhstan
2.58%
Russia
0.74%
Ukraine
0.38%
Kyrgyzstan
0.15%
Other
0.00%
Volume of corporate bonds markets in 2001, % of GDP
Source: S.Lialin (Cbonds Co. / S-Petersburg, Russia)
Why? Just Follow the Rules
• The Market Is Where the Investors Are
• Stimulate the Market With the Tax
Regime and Portfolio Investments
Regulation (0% taxes for the main types
of investors and the flexible limits of
investments in corporate securities for
institutional investors)
The National Investors
The corporate bonds market of Kazakhstan is driven by
the assets of the private accumulative pension funds
(PAPF) and the commercial banks
As for 01.01.03 the assets of the
commercial banks are equal to 7,39
USD bln, of the private accumulative
pension funds – 1,25 USD bln,
in total – 8,64 USD bln (35,94%
of GDP)
National Investors: Some Facts
• Pension reform in Kazakhstan was launched in
1998. The same year the first private
accumulative pension funds have appeared
• There is State Accumulative Pension Fund
(27,6% of total pension assets) but now it is not
authorized to invest in corporate securities
• The impact of the individual investors and
insurance companies is invisible
Foreign Portfolio Investors
There are NO foreign portfolio investors in the bonds
market of Kazakhstan: the yield is too low due to the
excess of the domestic investors appetite over the
domestic bonds supply
Yield of Kazakhstan Corporate Bonds (% p.a.)
Face Value of the Listed Bonds (USD
mln)
Trade Turnover of the Listed Bonds
(USD mln)
The Trade Volume is Lower
Than the Total Face Value
The reason is the same: the hungry national investors
prefer to keep the bonds till maturity
Ratings of Kazakhstan Borrowers
S&P
Moody's
Fitch
Kazakhstan, the Republic of
BB
Baa3
BB+
Kazakhstan Railroads
BB
Ba1
BB+
B1
BB-
Kazakhoil
Kaztransoil
BB
BB
Development Bank of Kazakhstan
BB
Baa3
BB
Kazkommertsbank
BB-
Ba1
BB
TuranAlemBank
BB-
Ba1
B+
Halyk Savings Bank of Kazakhstan
BB-
BB
What Do We Expect?
• The evolution growth of the national
corporate bonds market (up to 10% of
GDP and more)
• The growing interest of foreign portfolio
managers to Kazakhstan corporate
eurobonds
• The appearance of foreign bonds in
Kazakhstan market (cheaper cost of
borrowings)
Need to Know More?
www.kase.kz