RCS - Record PLC - Record invests in ADB's Kazakhstan Gender Bonds

RecordAnnouncement

27/04/2023 07:00

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RNS Number : 5944X  Record PLC  27 April 2023

April 27, 2023

Record PLC

Record invests in ADB's Kazakhstan Tenge Gender Bonds

Record PLC (LSE:REC), the global currency and asset manager, announces that
its Emerging Market Sustainable Finance Fund is the sole investor in the
latest offshore transaction of local currency gender bonds issued by the Asian
Development Bank ("ADB"). ADB has raised Kazakhstan tenge (KZT) 2.3 billion
(about USD 5 million) from a new issue of offshore tenge-denominated bonds,
providing funds for ADB's own local currency lending in the country as part of
its ongoing "Promoting Gender Equality in Housing Finance" project. The
project aims to expand the lending operations of Housing Construction Savings
Bank of Kazakhstan to provide affordable residential mortgage loans to female
borrowers in primarily rural areas of Kazakhstan. The transaction is
structured as a fixed rate bond paying a semi-annual coupon of 10.5%, with use
of proceeds defined under ADB's "gender bond" issuance theme for sustainable
development, maturing in December 2030 with listing in Luxembourg and arranged
by HSBC Bank plc.

ADB is committed to achieving a prosperous, inclusive, resilient, and
sustainable Asia and the Pacific, while sustaining its efforts to eradicate
extreme poverty. Kazakhstan became a member of ADB in 1994, shortly after it
achieved independence. Since then, ADB has aided Kazakhstan with sovereign and
non-sovereign financing and technical assistance. ADB is a regular bond issuer
in Kazakhstan tenge, applied to fund projects on a back-to-back basis.

The Record Emerging Market Sustainable Finance Fund is an Article 8 fund
under Regulation (EU) 2019/2088 that aims to support the development of local
currency markets in low and middle-income economies together with improved
access to long-term local currency lending. This unique investment strategy
represents a significant innovation in currency markets and a commitment to
the development of new sustainable investment products for private investors
globally, which Record expects to have broad and growing appeal for years to
come.

Dr Dmitri Tikhonov, CIO, Record, said, "We are delighted to partner with ADB
to support their local currency lending programme in Kazakhstan that delivers
affordable residential mortgage loans to female professionals in rural areas
of the country. This transaction fulfils our ambitions to invest in
sustainable local currency instruments that deliver transparent and measurable
impact without the hard currency burden on local communities. We congratulate
ADB on this initiative and look forward to a long-lasting partnership on
currency solutions that promote greater inclusion and long-term sustainable
growth."

 

"ADB's local currency operations continue to grow in Kazakhstan, not only in
terms of volume but also in terms of sophistication," said ADB Treasurer
Pierre Van Peteghem. "Although we have become increasingly active in the
Kazakhstan domestic bond market, this is our first international KZT-linked
bond since 2007. We are grateful to Record Emerging Market Sustainable Finance
Fund for their impactful support."

 

 

For further information, please contact:

 

Record
plc
Tel: +44 (0) 1753 852 222

Leslie Hill, Chief Executive Officer

Steve Cullen, Chief Finance Officer

 

Buchanan
Tel: +44 (0) 20 7466 5163

Simon
Compton                                                                     record@buchanan.uk.com

Henry Wilson

George Beale

 

 

 

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