Lizing Group Raises 85 Million Tenge on KASE at 22% Yield

In a specialized KASE auction, the leasing company raised 85 million tenge by placing commercial bonds at a 22% annual rate with a six-month maturity. The placement took place on the exchange's alternative platform, designed for smaller and not always rated issuers, which explains the high yield compared to quasi-sovereign issues. For leasing companies, such short-term, higher-cost borrowing is a common tool for replenishing working capital to fund new lease agreements. Investors considering such bonds should weigh the elevated credit risk of small issuers against the notably higher rate compared to bonds from large quasi-state entities. Such placements also reflect growing interest from Kazakhstan's non-bank financial sector in KASE's debt market as an alternative to bank lending.