IDF Eurasia in Kazakhstan to place dollar bonds on AIX

IDF Eurasia group continues to systematically implement its strategy to expand its presence in the stock markets.

The company is preparing to place two-year dollar bonds on Astana International Exchange (AIX) on September 29, 2020. The Issuer is microfinance institution — OnlineKazFinance (part of IDF Eurasia). The issue volume is $7 million with a coupon rate of 9% per annum. The nominal value of one security is $100, and payments are made on a quarterly basis. The placement’s underwriter is Freedom Finance.

MFI OnlineKazFinance LLP has been operating in the Kazakhstan market for 4 years (Moneyman and Solva brands), being the first and only microfinance company in the country that provides loans to individuals and SMEs 100% online.

The income of MFI OnlineKazFinance amounted to 5.7 billion tenge at financial year-end 2019, which is three times higher than in 2018. Net profit amounted to 1.4 billion tenge (a year earlier — a loss of 142 million tenge).

At the end of Q1 2020, the company’s revenues increased to 3 billion tenge, showing a four-fold increase in annual terms. At the same time, the profit approximated to the results for the whole of 2019, amounting to 1.179 billion tenge only in the first half of 2020.

As of July 1, 2020, the loan portfolio of OnlineKazFinance amounted to 29 billion tenge, this figure is more than 5 times higher than in 2018.

Earlier in August 2020, MFI OnlineKazFinance LLP also successfully placed bonds on the Kazakhstan Stock Exchange (KASE), becoming the first microfinance company in Kazakhstan to issue debt securities. The maximum issue volume was 4 billion tenge, and almost 2 billion tenge of securities were placed during the first day of trading.