As of January 16, 2020, it will be possible to carry out a private placement of non-sovereign bonds in Kazakhstan, i.e., it shall be possible to offer bonds to a limited number of investors.¹

In principle, an issuer of non-sovereign bonds has had the right to offer bonds to particular investors in Kazakhstan prior to these amendments (e.g., by means of subscription carried out on a stock exchange). However, it is reasonable to expect that the new concept of private placement will entail less burdensome requirements for issuance.

In particular, the conditions for the issue of non-sovereign bonds for private placement should be specified by a private memorandum. The requirements as to the content of such a memorandum will be set out in a resolution of the Agency of the Republic of Kazakhstan for Financial Market Regulation and Development. As at the date of this publication, the draft of the said resolution is not publicly available.

It should also be noted that the non-sovereign bonds may be privately placed only among qualified investors, whose number should not exceed 50.

For the avoidance of doubt, the privately placed non-sovereign bonds may be included in the official list of the Kazakhstan Stock Exchange.

We will be monitoring the situation and keep you posted on any significant developments.

1. The Law of the Republic of Kazakhstan “On Introducing Changes and Amendments to Certain Legislative Acts of the Republic of Kazakhstan on Recovery of Economic Growth” No 399-VI dated 2 January 2021.↩