The Kazakhstan Stock Exchange (KASE) expanded its instrument lineup for retail and institutional investors. Two issues of corporate Islamic “al-Wakala” sukuk securities entered the platform’s trading lists.
What happened
Asia Mineral Resource SPC Ltd, a company supplying electricity to Kazakhstan’s industrial enterprises for over a decade, issued the papers. According to the Telegram channel Finmentor, investors have two investment options with different currencies and terms.
The first issue is denominated in US dollars. The papers mature in November 2028, with a projected annual yield set at 11%.
The second issue is in tenge, maturing in March 2029. This instrument offers investors a projected annual yield of 24%.
Payments to bondholders for both issues will occur quarterly. The issuer will direct the raised funds to modernize operational processes and expand electricity supply volumes.
Country and market
For the Central Asian financial market, this confirms Kazakhstan’s status as the main regional hub for Islamic finance. While neighboring countries, including Uzbekistan, are still developing the regulatory framework to launch a sukuk market, Kazakhstani platforms already provide ready-made corporate instruments compliant with Sharia principles.
The country is building a comprehensive infrastructure for such investments. Finteqstan previously reported that broker Halyk Finance added Sharia investment screening to its app from local fintech Ailat; now, new targeted assets for such portfolios are appearing on the exchange.
Why it matters
Sukuk structurally differ from classic bonds. Under Sharia law, investors cannot receive a fixed loan interest. Instead, they become co-owners of the underlying asset and receive a share of the profits from the issuer’s real commercial activity—in this case, electricity supplies.
The open-market debut of high-yield Islamic papers tests the real appetite of retail investors for ethical financial instruments.
Adding these assets to KASE solves two problems. The exchange opens access to capital from conservative Middle Eastern investors, while local users get a legal portfolio diversification instrument tied to the real economy.
What’s next
The success of the Asia Mineral Resource placement will serve as an indicator for other corporate players. If the issues show high liquidity on the secondary market and the stated yield is paid without disruption, other Kazakhstani real-sector companies may start using sukuk as a viable alternative to bank loans and standard bonds.