BCC Invest: Kazakh Bond Market Is Becoming a Real Alternative to Bank Loans

How Kazakh Mid-Sized Firms Are Reaching the Bond Market

Bonds are moving from an exotic, state-only instrument to a practical source of funding for Kazakhstan's mid-sized companies, according to BCC Invest, an investment company active on the Kazakh capital market. In an interview with Forbes Kazakhstan, Amanat Iskakov, managing director for corporate business, said a growing number of SMEs and real-economy firms are using listings on KASE and AIX to raise finance.

BCC Invest reported arranging placements worth about 306.9 billion tenge in 2025 and more than 122.3 billion tenge in the first five months of 2026. Its client list spans financial institutions such as KMF Bank and Home Credit Bank (a subsidiary of Forte Bank), companies like AK Altynalmas and Kazakhstan Electrolysis Plant, as well as mid-sized issuers including BI Development, Monolit Group, Kazakhstan Utility Systems and the logistics company Rokos Logistics.

The shift is being driven by the rising cost of bank credit. With the National Bank's base rate near 16.75-17.00% and annual inflation around 10.4%, business loans are often priced at 18-22%, and banks usually require liquid collateral. Bond issuance, by contrast, offers financing without collateral and without diluting owners' equity. Exchanges have also lowered the entry barrier: KASE and AIX introduced SME-oriented listing segments, digital procedures, and the KASE SME Qadam program, which compensates part of the cost of a financial consultant.

According to BCC Invest, a debut bond issue can now be prepared in roughly two to four months, compared with what the firm describes as a slower, more requirements-heavy process a few years ago. The market is not a universal fix for every company, the interview acknowledges, but for financially stable businesses it is increasingly a genuine alternative to bank loans and a way to refinance existing debt.

Why Costlier Bank Credit and Friendlier Exchanges Are Driving Issuance

Note: The figures and deal descriptions below are as presented by BCC Invest in the interview and were not independently verified for this article.

Why Higher Bank Rates Are Pushing Firms Onto the Exchange

BCC Invest's main argument is a cost comparison. Bank lending for businesses commonly runs at 18-22% a year, while Kazakhstan Utility Systems' debut AIX issue carried a 19% annual coupon paid semi-annually, and high-yield issues are being placed at 21-24.5%. When a bond coupon is no more expensive than a bank loan — and requires no collateral — the trade-off changes for creditworthy mid-sized borrowers. That comparison explains why the firm sees bond issuance as a realistic alternative rather than an emergency option.

The Exchanges Are Building an On-Ramp for Mid-Sized Issuers

The market access story rests on specific infrastructure. KASE and AIX have created listing segments scaled to company size, eased disclosure requirements and digitised interaction between participants. The KASE SME Qadam program, developed with BCC Invest's participation, goes further by compensating part of the financial consultant fee. The practical effect can be seen in the cases cited: Rokos Logistics raised an 800 million tenge three-year bond on KASE in February 2026 through a simplified SME route, and MFO MOST placed 1.66 billion tenge on KASE the same month, with 64% of the issue bought within five trading days.

BCC Invest Is Making a Strategic Bet on the SME Segment

The interview shows a deliberate portfolio shift. BCC Invest is best known for large mandates, including underwriting Kaspi.kz's $650 million Eurobond on the LSE and AIX and involvement in Kazakhstan's sovereign Eurobonds. But the firm says its recent book is tilting toward middle-market and real-economy companies, a segment it expects to be the main source of capital market growth over the next few years. This is a commercial calculation as much as a market observation: more SME issuers mean a larger advisory and underwriting pipeline.

Retail Investors Are Supplying the Demand Side

Issuance is meeting growing demand from domestic investors. With deposits yielding less than high-yield bonds — market issues are cited with yields of 21-24.5% — retail investors have moved into the asset class, helped by broker apps that make bond purchases as simple as opening a deposit. The result is a wider investor base for issuers and, for BCC Invest, a more liquid aftermarket. The same yields, however, signal that investors are pricing real credit risk into smaller and financial-sector issuers.

What Kazakh Companies Should Check Before Issuing Bonds

For finance directors and owners of Kazakh companies considering a bond issue, the interview points to several concrete checks.

• Compare total cost, not just coupon: bank business lending is running at 18-22%, so a bond issue with a coupon in the 19% range — as Kazakhstan Utility Systems paid on its 17 billion tenge AIX debut — can be competitive once collateral savings are counted. Add consultant fees, listing expenses and future disclosure costs to the comparison.
• Test eligibility for KASE SME Qadam before budgeting: the program compensates part of financial consultant costs and targets companies with at least two years of operating history, audited financial statements, a transparent ownership structure and no significant regulatory or judicial risks.
• Set a realistic timeline: debut issues are taking from several weeks to 2-4 months from documentation to listing, not the long, burdensome process associated with premium listings a few years ago.
• Use bonds to refinance existing debt: replacing several bank loans with a single bond issue can cut collateral demands and diversify funding sources, but the company must be ready for ongoing disclosure and the discipline of a fixed payment schedule.
• Time the issue to investor appetite: MFO MOST's 1.66 billion tenge placement on KASE in February 2026 was 64% subscribed within five trading days, but weaker credits face high-yield pricing of 21-24.5%, which erodes the cost advantage and leaves little room for error.