The initiative, which is partnership with National Bank of Kazakhstan will allow government securities, including short-term notes of the national bank to be cleared with the aim of expanding the access of foreign investors to the Kazakh stock market and subsequently increase liquidity.
According to Clearstream, the rollout of the settlement system for government bonds through clearing house will enlarge the country’s long-term funding sources, reduce the cost of borrowing for the government, and will positively impact the yield curve formation and development of the Kazakhstan stock market.
Philip Brown, co-CEO of Clearstream Banking, said: “This cooperation is in line with our broader strategy in the Commonwealth of Independent States and Central Asian region.”
“For more than 20 years, we have enabled emerging capital markets in the region to connect to international investors, increasing their investment appeal by providing a low-risk, efficient post-trade environment.”
“This strategy has already proven successful in Armenia and Georgia and we are convinced that we will be able to provide the same benefits to the Kazakh capital markets.”