Kazakhstan’s Aluminium Smelter (Kazakhstansky Elektrolizny Zavod or KEZ), a subsidiary of Eurasian Resources Group (ERG) and a primary aluminium producer, is set to issue three-year bonds worth up to $100 million, ERG has announced.
ERG confirmed the upcoming issue of guaranteed coupon bonds, also for a three-year term, totalling up to $100 million. This marks a first for the Kazakhstani securities market: a non-government bond issue, regulated by local law, backed by Development Bank of Kazakhstan JSC as guarantor. The bonds will be listed on the Kazakhstan Stock Exchange (KASE) by KEZ, which is part of ERG and holds the distinction of being the sole producer of high-grade primary aluminium in the country.
The bonds are denominated in US dollars and will be placed on the KASE platform. The total offering is capped at $100 million, with each bond having a par value of $1,000. They will have a three-year maturity period with coupon payments made every six months. The principal amount is due as a single bullet payment at the end of the term. This bond issue has secured an investment-grade credit rating of Baa1 from Moody’s, the international rating agency.
Shukhrat Ibragimov, Chairman of the Board and Chief Executive Officer of ERG, commented on the development: “Eurasian Resources Group is launching its first public debt instrument in the company’s long history. This expands our financing options, aligning with our long-term business growth and capacity expansion programme. I’m pleased to acknowledge the seamless and successful collaboration between the ERG and Development Bank of Kazakhstan JSC teams, which has resulted in a non-government bond, regulated by local legislation, receiving an international investment rating for the first time in Kazakhstan. This unlocks further opportunities for Kazakhstani companies to attract financing and creates a new segment within the stock market.”
The Development Bank of Kazakhstan has provided an irrevocable guarantee for the bonds, with the Central Securities Depository acting as the settlement agent for the issue.
Kazakhstan’s Aluminium Smelter commenced primary aluminium production in 2007, yielding 11,000 tonnes that year. Its initial phase had a capacity of 125,000 tonnes. A second phase, with similar capacity, was launched in 2010. In 2024, KEZ produced 264,500 tonnes of aluminium.
Separately, Kazchrome, another multinational company within Eurasian Resources Group (ERG), is planning to delist its shares from the KASE due to low liquidity and no plans for further share placements, ERG previously informed Kursiv.
The ultimate owners of ERG are the Ministry of Finance of the Republic of Kazakhstan (40%), the heirs of Alexander Mashkevich and the Ibragimov family (each holding 20.7%), and Patokh Chodiev (18.6%). The group’s founders – Alexander Mashkevich, Patokh Chodiev, and Alijan Ibragimov – became Kazakhstan’s first dollar billionaires in 2005, according to Forbes, each with a net worth of $1 billion. Alijan Ibragimov’s stake is now held by his wife, Mukadaskhan Ibragimova, and their four sons (Dostan, Davron, Shukhrat, and Furkhat), who collectively rank seventh on Forbes’ list of the wealthiest Kazakhstani individuals, with a combined fortune of $2.06 billion.
