Tsesna Capital, a subsidiary of Tsesna Bank, is one of Kazakhstan’s largest investment and brokerage companies by market capitalization and is determined to take the top spot in its industry in the country and in Central Asia.
For Chairman of the Management Board Samat Balkenov, the company’s future has grown very bright because Kazakhstan is positioning itself as a regional financial hub.
“There are two ways in which we provide our clients value. We have traditional products that involve brokerage, asset management and underwriting on the local stock exchange. We also have innovative products that involve selected investment banking products and services adopted for local needs,” Balkenov explained.
While Kazakhstan’s financial sector experienced severe blows in the wake of the commodities bust, the industry appears to have left behind those challenging years.
“Tsesna Capital increased its market share due mainly to an expanding middle class that has taken advantage of our new financial products that were non-existent in this market before. These include ratings advisory, investor relations, debt IR and best practices in liabilities management,” Balkenov said.
As part of the Eurasian Economic Union, Kazakhstan is an attractive area for growth, especially in the fields of M&A, corporate finance advisory and fixed income deals. Due to its central location in the region, Kazakhstan is an ideal center for regional expansion for Russian retailers. Also, the country has rated higher than Russia in ease of doing business.
Investors are also looking forward to next year’s launch of the Astana International Financial Center, which will adopt Western-style regimes and regulations.
“The opening of the Astana International Financial Center is good news for local players like Tsesna Capital. The largest privatizations in Kazakhstan will happen mainly in the form of IPOs through the AIFC. As one of the largest brokerage companies, we will be among the limited number of local brokers who will be rendering brokerage services worldwide,” Balkenov said.
The opening of the AIFC will provide more growth opportunities for local financial players and has already generated much interest from the Shanghai Stock Exchange and NASDAQ. The expected involvement of the world’s largest stock markets will definitely raise Kazakhstan’s profile as an important financial hub in the region.
The Japanese are also welcome to invest in Kazakhstan’s thriving economy through private equity infusions, either as passive investors or active investors that contribute their expertise in manufacturing and technology.
