The Asian Development Bank (ADB) has raised 427.5 billion Kyrgyz som (about $5 million) from its first bond offering issued in this central Asian currency, ADB says in release.

The 3-year issue, which carries a 10.5% coupon, is denominated in Kyrgyz som and settled in US dollars.  Arranged by Standard Chartered Bank and fully subscribed by Record Currency Management, it was structured as an international bond and documented under ADB’s Global Medium-Term Note Program. 

The financing provides a full mitigation of currency risk for an ADB project, which supports micro and small enterprises (MSEs), with at least 40% of the loan to be channeled to women-led or owned MSEs. The project is delivered through Kompanion Bank, which has a strong presence in rural areas and experience in supporting women entrepreneurs.

“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,” ADB Assistant Treasurer Jonathan Grosvenor said.

Local currency finance is a strategically important deliverable for ADB, which has been increasingly active in issuing bonds and contracting derivative solutions in the currencies of Central and West Asia, with multiple funding arrangements already completed in Armenian dram, Azerbaijan manat, Georgian lari, Kazakhstan tenge, and Uzbekistan sum. 

“We are delighted to partner once again with the Asian Development Bank on its inaugural Kyrgyz som-denominated note issuance that supports inclusive growth, gender equality, economic resilience, and the development of the local currency market in the Kyrgyz Republic,” said Record Currency Management Fixed Income Portfolio Manager Renata Kreuzig. “The transaction fulfills the ambition of Record EM Sustainable Finance Fund to deliver affordable, local currency funding for local MSE borrowers with a positive, long-lasting impact on local communities.”

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.