Citi launches Kazakhstan bond-linked Global Depository Note program

By Wendy Van Sickle

Columbus, Ohio, Dec. 14 – Citibank’s issuer services business launched a Global Depositary Note (GDN) program in connection with the Republic of Kazakhstan’s outstanding domestic sovereign bonds, according to a press release.

During the recent official visit of Kazakhstan president Nursultan Nazarbayev to the United Kingdom, the ministry of finance of Kazakhstan and Citi signed a memorandum of cooperation on the commercialization of the GDN program, according to the release.

GDNs are a debt security version of the traditional equity-based depositary receipt (DR) structure, facilitating cross-border access to local debt securities for broker-dealers and institutional investors, namely in the United States to qualified institutional buyers and outside the United States to non-U.S. residents.

GDNs represent particular local debt securities, replicating the characteristics of the respective local bonds while trading in U.S. dollar terms and settling in Euroclear, Clearstream and the Depository Trust Co.

“Citi’s GDN product is conducive to our objective of further developing the national bond market,” said minister of finance Bakhyt Sultanov in the release. “We are glad to support initiatives that promote increased diversification of the investor base for our domestic debt securities.”

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