ADB Issues First Bond Denominated in Kyrgyzstan’s Currency

The Asian Development Bank (ADB) has raised about $5 million from its first bond issued in Kyrgyzstan’s currency, the som. Arranged by Standard Chartered Bank and fully subscribed by Record Currency Management, the 3-year bond issue carries a 10.5% coupon and mitigates currency risk for an ADB project in Kyrgyzstan. The project supports micro and small enterprises (MSEs), with at least 40% of the loan channeled to women-led or owned MSEs. The project is delivered through the local Kompanion Bank, which has a strong presence in rural areas and experience supporting women entrepreneurs nationwide. ADB Assistant Treasurer Jonathan Grosvenor commented: “ADB’s maiden Kyrgyz Som bond further expands our local currency footprint and builds on our efforts to deliver foreign exchange risk mitigation solutions in all of ADB’s developing member countries.” Since Kyrgyzstan joined the ADB in 1994, the bank has committed $2.6 billion in public sector loans, grants, and technical assistance to the country.