ASTANA – Eurasian Resources Group (ERG) announced the issuance of guaranteed coupon bonds worth up to US$100 million with a three-year maturity. This marks the first time non-government bonds regulated by Kazakhstan’s laws have been issued on the Kazakhstan Stock Exchange (KASE) with a guarantee from the Development Bank of Kazakhstan, reported ERG press service on June 2.
Photo credit: erg.kz
The offer includes up to 100,000 bonds with a nominal value of US$1,000 each. Investors will receive interest payments twice a year, while the principal will be repaid in full at the end of the three-year term. Moody’s Investors Service has assigned these bonds an investment-grade credit rating of Baa1.
The bonds are placed by Kazakhstan Aluminium Smelter (KAS), which is part of ERG and the country’s sole producer of primary high-grade aluminum. This issuance represents a significant step for ERG in strengthening its presence in the organized debt capital markets. The Central Securities Depository acts as the settlement agent for the issuance.
ERG’s CEO Shukhrat Ibragimov highlighted the cooperation with the Development Bank as key to opening new financing opportunities.
“This is ERG’s first public debt instrument in the company’s history. It expands our financing options and supports our long-term growth and capacity expansion plans,” he added.
KAS operates in Pavlodar and has been producing aluminum for 17 years, meeting international standards. The plant supplies aluminum to over 20 countries across Kazakhstan, Europe and Asia. Since launching the first stage in 2007, production has steadily increased, reaching 264,500 tons in 2024. In March 2025, KAS produced its fourth million tons of primary aluminum.
The funds raised will finance KAS’s operating expenses and prepay supplies of raw materials and electricity from domestic producers, supporting aluminum production and exports. The enterprise maintains a localization level exceeding 90% Kazakh content and supports over 2,000 jobs.
