Record invests in ADB’s Kazakhstan Tenge Gender Bonds

April 27, 2023

Record PLC

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.”