Akimats Turn To Stock Exchange To Fund Housing Projects

The akimats of Shymkent, Atyrau region, and Karaganda region borrowed funds through bonds on the Kazakhstan Stock Exchange to finance housing projects, Orda.kz reports.

KASE held trading for the placement of akimat bonds.

Shymkent raised the most, placing bonds worth almost 20.4 billion tenge. Atyrau region borrowed 5 billion tenge, while Karaganda region raised nearly 3.9 billion tenge.

All securities were issued at an annual rate of 4.25% and will mature in March 2028.

The exchange said the akimats are raising funds for housing projects. The money is expected to go toward the construction, purchase, and buyout of housing, as well as financing apartments in shared construction projects.

Such bonds allow akimats to receive money in advance. First, they raise funds on the stock exchange, then direct them to construction or housing purchases. The debt is repaid later through apartment sales, housing program payments, or budget revenues.

If the projects do not pay off or sales are weaker than planned, the akimats will have to repay the debt from their local budgets.

Original author: Alexander Zhdanov

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