docs/bond-mechanics.md

1# Bond servicing mechanics in Kazakhstan (government bonds on KASE)
2
3Collected 2026-10-06. Status per item: **checked** = read in the source by Claude; **agent** = reported by the
4research agent with a quote, not re-read. Bond parameters are in `bond-params.md`; sources S1-S8 are listed at the end.
5
6## 1. Coupon payment day (S5, article 8, paragraph 6; checked)
7
8On the payment day the Central Securities Depository (CSD):
91. Compiles the list of holders entitled to the coupon "по состоянию на 09:00 алматинского времени указанного дня"
10   (as of 09:00 Almaty time that day).
112. Does NOT suspend registration of secondary-market trades, but pays only the holders on that list.
123. Calculates the coupon amount for each holder on the list.
134. By 17:00 Almaty time transfers the money received from the issuer to the holders' bank accounts.
14
15There is no separate record date: KASE shows "–" in the record-date column (S1, agent). The record moment is
1609:00 on the payment day.
17
18## 2. Redemption day (S5, article 10, paragraph 6; checked)
19
20On the redemption day the CSD:
211. Stops registering trades in the issue.
222. Compiles the holder list as of 09:00 Almaty time.
233. Calculates the face value due to each holder.
244. By 17:00 pays the face value and writes the bonds off ("списывает ГКО") the holders' sub-accounts.
25
26The write-off is the equivalent of the listing's "burn, retire, lock, or otherwise mark the tokens as redeemed".
27
28## 3. Supporting rules
29
30| Rule | Source | Status |
31|---|---|---|
32| Issuer must credit the full amount to the CSD by 16:00 on the payment day | S5 art.8 p.7 | agent |
33| CSD notifies the issuer no later than 3 working days before payment | S5 art.8 p.3 | agent |
34| A holder is a person on whose account the bonds sit at the moment the list is compiled | S6 art.159 p.3 | agent |
35| Payment falling on a non-working day moves to the next working day (coupon and redemption) | S3 p.14, p.15 | checked |
36| Interest accrues from the first day of circulation to the day before maturity | S3 p.14 | checked |
37| The last coupon is paid on the redemption day | S3 p.14 | checked |
38| Redemption at par on the first day after the end of circulation | S3 p.15 | checked |
39| MEOKAM coupon: `S = N*C*180/360`, twice a year, 30/360 | S3 p.32-34 | checked |
40| MEUKAM coupon: `S = N*C`, once a year, 30/360 | S3 p.41-43 | checked |
41| Issuer may buy back all or part of an issue at market price on the secondary market and redeem it | S3 p.16 | agent |
42| Exchange for a new issue only with holders' consent | S3 p.17 | agent |
43| Ministry of Finance bonds are excluded from the CSD paying-agent rules for other issuers | S7 art.2 p.1(1) | agent |
44| Corporate bonds: holder list as of the date and time in the issuer's request | S7 art.9 p.3 | agent |
45| The CSD rulebook governs depository servicing of government securities | S8 p.32 | agent |
46
47Regular coupon amounts are fixed per period (rate x face / frequency), so the day count does not change them.
48The day count matters for broken periods.
49
50## 4. Facts that constrain the design
51
52- **Coupon day:** trading continues after the 09:00 list is taken. Entitlement therefore depends on each holder's
53  balance at 09:00, not at the moment the payment is executed.
54- **Redemption day:** trading stops, so balances are frozen from 09:00 until write-off.
55- **Settlement:** payment to holders happens on the same day, before 17:00.
56
57## 5. Not found
58
59- The holiday calendar. 06.03.2027 and 06.03.2032 are Saturdays and 06.03.2033 is a Sunday, but KASE shows payment on
60  Tuesday 09.03.2027 and 09.03.2032, which skips Monday 08.03 (agent). No source yet explains this.
61- Rounding of the coupon per holder.
62- Extra interest for a delayed payment.
63- The issue decision and the first-auction notice for MUM108_0015.
64
65## Sources
66
67- **S1** KASE security page MUM108_0015: <https://kase.kz/ru/investors/gsecs/MUM108_0015>
68- **S2** KASE news 1549814 (auction terms): <https://kase.kz/ru/information/news/show/1549814>
69- **S3** Government Decree No. 473 of 27.06.2025, amended 14.07.2026 (No. 615):
70  <https://adilet.zan.kz/rus/docs/P2500000473> (read on the mirror <https://zakon.uchet.kz/rus/docs/P2500000473>)
71- **S5** CSD «Правила обслуживания и погашения ГКО» (approved 02.11.2012, in force from 16.01.2017):
72  <https://backend.kcsd.kz/storage/documents/files/rules-gov-securities-5-ru-6a8c2c9aa90b4.pdf>
73- **S6** CSD rules on registrar and depository activity (special part), art.159-160:
74  <https://backend.kcsd.kz/storage/documents/files/rules-particularpart-depositary-registrar-10ru-6a6c40435e8ac.pdf>
75- **S7** CSD rules on paying-agent services:
76  <https://backend.kcsd.kz/storage/documents/files/rules-payment-3ru-6973702da8134.pdf>
77- **S8** National Bank Board Resolution No. 307 of 29.11.2018, p.32: <https://adilet.zan.kz/rus/docs/V1800017920>