Astana, 22 October. Alif Moliya, part of the Alif fintech group, has placed Islamic bonds — sukuk — on the AIX exchange of the Astana International Financial Centre, becoming the first issuer from Uzbekistan on the platform; the underwriter was Teniz Capital Investment Banking, and the money raised will go to developing financial services in Uzbekistan, Forbes.kz reports.
Alif is one of Uzbekistan's five largest fintech companies, with a portfolio of more than $200m, 9 million users, more than 12,000 points of sale and about 25% of the instalment market. The group's parent is the British holding company Alif Capital Holdings; the group has more than 11.5 million users and 1,540 employees in Tajikistan, Uzbekistan and Pakistan, and assets of $528m. For Alif this is its first public entry into the debt capital market. Sukuk are bonds structured under the rules of Islamic law: the holder receives not interest on a debt but income from an asset or transaction in whose risk they share.
The paper has a two-year term, but a buyback option after one year effectively makes it a one-year instrument. "This is the first public issue, and it makes sense to offer better terms first to make a name for yourself and build a credit history," says financier and Islamic finance expert Adlet Aliyev; he calls AIX the best venue in the region thanks to AIFC law and access to international investors. "Imagine: an entrepreneur from Tajikistan develops a business in Uzbekistan and raises capital in Kazakhstan," says Zukhursho Rakhmatulloev, co-founder of Alif Capital Holdings. Forbes.kz does not give the size or rate of the issue.
For Teniz Capital this is its third sukuk issue on AIX. "We see AIX gradually becoming an entry point to the capital market not only for Kazakh companies but also for issuers from neighbouring countries," says Assel Tolegen, director of the investment bank's corporate finance department. Madina Tukulova, head of Islamic finance at the AIFC, called the deal a practical example of Central Asian financial integration.
What it means: An Uzbek company has for the first time raised money on a Kazakh exchange, and with Islamic bonds: AIX is starting to work as a regional venue rather than only a Kazakh one.
Who benefits: Alif gets access to international investors and a credit history on the public market; the AIFC and Teniz Capital get confirmation of their regional role. Investors, according to the deal's participants, get a short instrument on favourable terms and a new tool for diversification.
Background: The AIFC believes Kazakhstan can become a regional hub for Islamic finance: according to Tukulova, there is interest in Islamic home finance, investment and savings products, but a real market needs accessible products, competitive terms and financial literacy.
List of sources used: Forbes.kz, Forbes Kazakhstan
Artificial intelligence was used in preparing this material.
