Export with a Spanish Accent

Teniz Capital Investment Banking, together with the UK-based investment bank Neftan Limited, held negotiations with the government of El Salvador regarding the financing of real estate construction backed by sovereign guarantees under the national social housing program. This Latin American country is distinguished by the fact that its state reserves are formed in cryptocurrency. A key topic of discussion was the development of an efficient financial mechanism to support the implementation of the government project aimed at constructing approximately 4,000 apartments for socially vulnerable citizens.

According to Assel Tolegen, Director of the Corporate Finance Department at Teniz Capital Investment Banking: «We see significant potential in collaborating with the government of El Salvador. The use of market-based capital-raising instruments under sovereign guarantees will accelerate the implementation of the social housing program and set a new standard for similar projects across Latin America».

The construction of social housing has been commissioned by Fonovito, a state-owned company reporting to the Ministry of Housing. The transaction is planned to have a 100% sovereign guarantee. Investment bankers note that the preliminary structure of the deal envisages launching a credit line through the issuance of notes, ensuring transparency, flexible terms and strong attractiveness for international investors.

During the visit to El Salvador, representatives of Teniz Capital and Neftan Ltd held meetings with officials from key government ministries — including Ernesto Castro Aldana, President of the Legislative Assembly, Michelle Sol, Minister of Housing, and Acting Minister of Finance Jerson Posada — as well as with potential developers who expressed interest in participating in the project.

According to Assel Tolegen, the estimated value of the project is €250 million. For a small and densely populated country with limited resources, this is a substantial sum — hence the decision to engage foreign investment banks to finance the project.

Teniz Capital Investment Banking already has international experience in working with financial institutions. In 2024, the company acted as the underwriter of the first bond issuance of the Black Sea Trade and Development Bank on the Astana International Exchange, amounting to $100 million — one of the largest international placements on the Kazakh exchange. This financial institution was established by 11 member states of the Black Sea Economic Cooperation to finance major infrastructure projects. «Such projects have become exemplary for the development of cross-border transactions and have demonstrated the bank’s expertise in structuring international debt instruments», — Assel Tolegen notes.

In October 2025, Teniz Capital Investment Banking acted as one of the local bookrunners in placing sovereign bonds of the Ministry of Finance of Kazakhstan. The funds were raised at a historic low yield of 4,412% per annum, which is very close to the yields on U.S. Treasury securities. The oversubscription was ensured by the coordinated efforts of the bookrunner syndicate, which included Standard Chartered Bank that attracted the largest volumes of capital from Asian and Middle Eastern investors.

The Latin American case could carry strategic importance for Kazakhstan. Kazakh investment banks have accumulated strong experience in placing sovereign and quasi-sovereign debt instruments on international markets. However, the current development of global capital markets shows growing interest from governments and corporates in diversifying funding instruments and adopting more flexible deal structures. Countries are increasingly open to new financial technologies and innovation. For Kazakh investment banks, such transactions may provide practical experience of working in emerging markets.