Kyrgyz Stock Exchange

#KSE_news From January 1 to June 30, 2024, government securities in the amount of 1 billion 195.62 million soms were placed on the trading platform of the Kyrgyz Stock Exchange (KSE). Of these, the volume of GKO-12 monthly amounted to 653.26 million soms, GKO-2 summer in the amount of 542.36 million soms. Currently, the average monthly yield of GKO-12 is 11.7%, the yield of GKO-2 summer is 14%. Currently, government securities are the most attractive financial instrument on the stock market of Kyrgyzstan, arousing genuine interest from investors. Let us recall that government securities have been placed on the Exchange’s trading platform since May 2023. All over the world, government securities are considered the most reliable and liquid securities. The main purpose of issuing government securities by the state is to finance national projects, budget deficits and refinancing government debt for which payments are due. The budget annually allocates funds for servicing government securities.

#KSE_news ISSUER'S DAY II-issue of social bonds Bank of Asia On July 2, 2024, the solemn event “Issuer Day” was held at the Kyrgyz Stock Exchange on the occasion of the placement of the 2nd issue of social bonds by Bank of Asia (“Bank of Asia”). The fundamental feature of this issue of the Bank’s bonds is their private placement among institutional investors, the strategic one of which is the State Development Bank of the Kyrgyz Republic. The agreement between the Bank of Asia and the State Development Bank is an important part of the Cooperation Agreement within the framework of the Program of the State Development Bank of the Kyrgyz Republic “Targeted financing through the Kyrgyz Stock Exchange”. According to the agreements, State Development Bank of the Kyrgyz Republic acquired 80% of the total issue in the amount of 100,000,000 (one hundred million) soms. Let us recall that in November 2022, the Bank of Asia became the first bank issuing gender bonds in Kyrgyzstan. The purpose of the second issue of social bonds is to support small medium-sized businesses, women entrepreneurs, and improve the well-being of entrepreneurs. President of Kyrgyz Stock Exchange - Medet Nazaraliev: “The KSE welcomes the 2nd issue of social bonds of the Bank of Asia, which demonstrates the best practice of attracting sustainable capital, as well as institutional investors, including the State Development Bank of the Kyrgyz Republic as a strategic institutional investor of the issue. Such joint projects contribute to a significant increase in the development potential of the capital market and attract financing in socially significant areas, and as a result, contribute to the development of a system of sustainable financing in the Kyrgyz Republic.” Chairman of the Board of State Development Bank, Meder Temirbekov: “The State Development Bank of the Kyrgyz Republic is confident that investing in Bank of Asia social bonds not only contributes to the achievement of our strategic goals, but is also a contribution to the well-being of our citizens and the sustainable development of our country. We look forward to further cooperation and are confident in the successful future of our joint projects.” Chairman of the Board of Bank of Asia, Zemfira Atakishieva: “We, at Bank of Asia, are proud that our social bonds have become an important tool for supporting socially significant projects in Kyrgyzstan. Our partnership with the State Development Bank of the Kyrgyz Republic confirms our commitment to sustainable development and improving the quality of life of our citizens. We actively support the principles of ESG (environmental, social and corporate governance) and are confident that supporting these principles will become the foundation for a successful future.”

#KSE_news KSE at the 10th MINEX Central Asia Forum in Bishkek The 10th MINEX Central Asia Forum is being held in Bishkek on June 19-20, 2024. This is an annual forum that is held in Central Asian countries and is aimed at strengthening interregional and international cooperation in the field of sustainable development of mining and metallurgical production in Eurasian countries. The agenda of the 2024 forum is devoted to the prospects and scenario of sustainable development of the mining and metallurgical industry in Central Asia. The President of the Kyrgyz Stock Exchange, Medet Nazaraliev, made a presentation at the Forum session on the topic "Financing the development of sustainable supply chains of critical materials and precious metal deposits in Central Asia." The session participants discussed the prospects for international cooperation with national and international financial markets to realize the mineral resource potential in Central Asia and attract investments in exploration. "The development of the precious metals market is one of the priorities of the CFB. I believe that it is an organized stock market that will lead to saturation of the precious metals market, provide affordable raw materials and establish transparent mechanisms for making transactions. The exchange's platform will allow the precious metals market to function effectively as a mechanism for the redistribution of financial resources and contributes to an increase in investment in the economy of our country," said Medet Nazaraliev. During the discussions of the session, it was noted that despite the fact that Central Asia has a huge mineral resource potential, it is necessary to develop infrastructure, evaluate investment projects using international standards and attract investments in exploration. In addition, existing institutional and regulatory barriers that hinder domestic and international enterprises and investors should be eliminated.

#KSE_news On June 6, 2024, at the 27th St. Petersburg International Economic Forum, a Cooperation Agreement was signed between the Exchanges of five countries. The document was signed by: President of the Kyrgyz Stock Exchange Medetbek Nazaraliev, President of the St. Petersburg International Commodity Exchange Igor Artemyev, Chairman of the Board of the Belarusian Universal Commodity Exchange Alexander Osmolovsky, Chairman of the Board of the Eurasian Trading System Commodity Exchange (Kazakhstan) Kurmet Orazaev, Chairman of the Board of the Uzbek Republican Commodity and Raw Materials Exchange" Ziyoviddin Badriddinov. As part of the Agreement, an International Exchange System of Commodity Market Indicators will be created, aimed at strengthening integration processes in the course of interaction between countries, as well as increasing the economic potential and competitiveness of their commodity markets. During the signing ceremony, President of the Kyrgyz Stock Exchange Medetbek Nazaraliev emphasized the importance of the ongoing integration processes in the EAEU space, the development of which leads to such significant decisions as the creation of a common system of indicators. “I am glad to note that this partnership is extremely relevant, and we are ready to provide the most serious support in the development of a single information resource,”- added M. Nazaraliev. Medet Nazaraliev also took part in discussions at the session on the topic “EAEU EXCHANGE COMMODITY MARKET: PRICE INDICATORS AS A DRIVER OF INTEGRATION,” which takes place within the framework of the 27th St. Petersburg International Economic Forum. Let us note that the St. Petersburg International Economic Forum (SPIEF) takes place from June 5 to 8, 2024, and is an important economic event in the Russian business world. The Forum provides effective opportunities for negotiations and networking for representatives of business and financial circles. The agenda of the forum discusses current economic topics, in particular, issues of inter-exchange cooperation and increasing the competitiveness of commodity markets.

#KSE_news #gender The Kyrgyz Stock Exchange (KSE), together with the UN Sustainable Stock Exchanges Initiative, UN Women and the World Bank Group's IFC, held an online seminar on gender equality in global capital markets. The event brought together approximately 70 people who gained the knowledge and skills needed to improve gender equality and equal opportunities in their organizations. In particular, workshop participants gained knowledge about capital markets gender equality and gender pay gap indices, and learned experiences and expertise on how to get the most out of market-based gender equality indices, gender bond issuance and disclosure. It should be noted that the KSE is an active participant in the UN Sustainable Stock Exchanges initiative and attaches great importance to the promotion of equal gender opportunities in capital markets. Aida Chodulova, Vice-President of the KSE: “The Exchange’s commitment to gender equality is a good example for others on how to attract attention, and most importantly, correctly shape public consciousness regarding equality and providing equal opportunities for the future sustainable development and growth of their companies and countries. Of course, much work still needs to be done to achieve full gender equality in Kyrgyzstan. But, in general, positive changes are already taking place, and we can be sure that Kyrgyzstan will move in the right direction, supporting and respecting the rights and freedoms of every person in the country. This gives hope that the situation will continue to improve". Tiffany Grabski, Head of the UN SSE Academy: “The UN Sustainable Stock Exchanges Initiative congratulates the Kyrgyz Stock Exchange for successfully conducting gender equality training in English and Russian. We are grateful for the opportunity to work with innovative and forward-thinking capital markets leaders such as the Kyrgyz Stock Exchange to build capacity on important topics such as gender equality. The seminar brought together leading experts in this topic and provided capital market participants in Kyrgyzstan with the opportunity to expand their knowledge and create new opportunities that will contribute to the development of more sustainable and fair markets.We wish the KSE success in continuing its activities focused on sustainable development.” Ulziysuren Zhamsran, representative of UN Women in Kyrgyzstan: “Advancing gender equality in global markets is an investment in a future where every person has an equal opportunity to achieve their potential and contribute to economic development.”

#KSE_news On May 7-9, 2024, the 2024 Annual Investment Congress was held in Abu Dhabi, United Arab Emirates, in which the President of the Kyrgyz Stock Exchange, Medet Nazaraliev, took part. The event is supported by the UAE Ministry of Industry and Innovation Technology and the Abu Dhabi Department of Economic Development. The annual investment congress brought together global experts to share knowledge and experience to explore investment opportunities to support sustainable economic growth. The head of the KSE spoke at the Central Banks & Stock Exchange Market's Presidents' Roundtable. During the round table, Medet Nazaraliev spoke about the ongoing transformation processes in the stock market of Kyrgyzstan. According to him, progressive changes are currently taking place in the financial market of our republic, which became possible thanks to the ongoing effective government policy and the chosen course of the KSE to create a universal trading platform. In addition, the President of the Kyrgyz Stock Exchange, Medet Nazaraliev, as part of his participation in the Annual Investment Congress 2024, visited the Abu Dhabi Stock Exchange (“ADX”) of the United Arab Emirates. At a meeting with the Chairman of the Board of ADX, Abdullah Salem Al Nuaimi, the prospects for further mutually beneficial cooperation were discussed. In particular, the issue of joining the KSE to the Tabadul Digital Exchange Trading Center was discussed.

#KSE_news The Kyrgyz Stock Exchange held its annual general meeting of shareholders On April 26, 2024, the annual general meeting of shareholders of the Kyrgyz Stock Exchange was held. Shareholders approved the annual report for 2023 and adopted the budget for 2024. In addition, the General Meeting of Shareholders elected members of the Exchange's Board of Directors in the following composition: Elebaev Nurbek Bekkulovich Hasan Barlas Akinci – representative of the Istanbul Stock Exchange Mazhekenov Ermek Bulatovich – representative of Kazakhstan Stock Exchange JSC Beknazartegin Almaz Omuraliev Talantbek Esengulovich Asanakunov Ulanbek Isaevich Kenenbaev Arslanbek Bolotbekovich Askarbekova Meerim Zhanbolotovna Nogoibaea Anarkan Toktosunovna. According to the final report of the KSE, last year there was an increase in trading volume; in 2023, the total trading volume in all trading modes amounted to 28.9 billion soms, exceeding the 2022 figure by 62.35% (17.8 billion soms). Let us recall that in 2023, the Ministry of Finance of the Kyrgyz Republic became one of the key shareholders of the KSE with an ownership interest of 33.34% in the authorized capital.

#KSE_news Vice-President of the Kyrgyz Stock Exchange Aida Chodulova took part in events under the auspices of the International Association of Exchanges (IAEx ) Vice-President of the Kyrgyz Stock Exchange Aida Chodulova took part in events under the auspices of the International Association of Exchanges (IAEx ), which took place on April 18-19, 2024 in Samarkand, Uzbekistan. During the general annual meeting of IAEx members, reviews of the activities and current performance of the association's member exchanges were discussed. Each Exchange representative had the opportunity to talk about their activities, long-term objectives and plans for the future.

#KSE_news The KSE and the Chamber of Commerce and Industry of the Kyrgyz Republic held a business meeting on the topic “Tools for attracting investments in the stock market of Kyrgyzstan” On April 16, 2024, the Chamber of Commerce and Industry of the Kyrgyz Republic (CCI KR) and the Kyrgyz Stock Exchange (KSE) organized a business meeting for entrepreneurs-members of the Chamber on the topic “Tools for attracting investments in the stock market of Kyrgyzstan.” The purpose of the event is to inform the business community about existing stock market opportunities that help attract funds for the expansion and growth of business activities.  It should be noted that in recent years the country's stock market has seen growth in all indicators. Thanks to government support, the Kyrgyz Stock Exchange launched: the government securities market, the precious metals market, the commodity sector, the sustainable development sector, etc. In his welcoming speech, Medet Nazaraliev, President of the KSE, emphasized that for sustainable development, companies need to expand their sources of attracting investment, and today the stock market makes it possible to attract investment through the issuance of shares and bonds, create a public history and increase reputation and recognition. "Using the financial instruments offered on the KSE platform, businesses can increase their capital, the Exchange offers you real opportunities to raise additional funds for business development. Currently, KSE is expanding its boundaries, and our task is to discuss with businesses possible ways of co-operation," said M. Nazaraliev. According to Avazbek Kerimbayev, Vice-President of the Chamber of Commerce and Industry of the Kyrgyz Republic, one of the priority tasks of the Chamber is to bring useful information about current economic events to the members of the Chamber. "Today the business community in order to keep up with the times needs to be aware of useful information on investments. Together with our partner KSE, we intend to intensify our information campaign to inform domestic entrepreneurs about the favourable opportunities of the stock market. This is the first business meeting organised by CCI KR and KSE, further, we intend to hold similar events in the regions of Kyrgyzstan", - said A.Kerimbayev

#KSE_news #Listing Securities of OJSC "Manas International Airport" were transferred to "A" category Securities of OJSC "Manas International Airport" were transferred to the category "A" (the highest) from the category "B" (next to the highest) of the Official List of the Kyrgyz Stock Exchange ( KSE)*. Moving to the category "A" indicates the compliance of OJSC "Manas International Airport" with a number of the highest requirements of the KSE listing. In particular, the requirements are made to the period of existence of the issuing company, the size of equity capital and profitability. It is obligatory to have audited financial statements for the previous financial year, to have net profit for the reporting year or for the sum of three years, to have a market-maker** of securities on the KSE. Securities in category "A" have minimal risks and high investment quality.   OJSC "Manas International Airport" has been listed on the KSE since July 2008 and today is one of the successful and dynamically developing companies of Kyrgyzstan, which has won the trust of citizens, the constant business interest of partners, and increased attractiveness for domestic and foreign investors. Today only state securities are in the "A" category and OJSC "Manas International Airport" is the first company that moved to the highest listing category. Major shareholders of OJSC "Manas International Airport" are the State Agency for State Property Management under the Cabinet of Ministers of the Kyrgyz Republic - 79.0533% and Social Fund of the Kyrgyz Republic - 8.4635%. The Total: number of shareholders as of 31.12.2023 is about 2456 shareholders. For the last three years, the net profit of the consolidated budget of OJSC "Manas International Airport" amounted to 4.0 billion KGS in 2021, 5.3 billion KGS in 2022 and 6.0 billion KGS in 2023. As of 2 April 2023, the price of one share was 850.00 soms, for the last 3 years the price of shares of OJSC "Manas International Airport" has risen from 311.00 soms to 850.00 soms per one share, the increase was almost 2.7 times. The capitalisation of the company increased from 8.67 billion soms to 23.69 billion soms.   Note: * The official list of the Exchange consists of four categories: - category “A”, which is the highest; - category “B”, next to the highest; - category “C”, starting category. - “SPAC” category, special category.   ** Market maker is a trading participant who undertakes obligations to maintain prices, demand, supply and (or) trading volume in financial instruments. Their main task is to create supply and demand. Key responsibilities of market makers typically include the following: keep quotes within a certain range; provide liquidity; prevent price gaps; maintain trading volumes on the exchange.