Kazakhstan has made a comeback to the international capital market, issuing $1.5bn in eurobonds for the first time since 2015. The bonds, with a 10-year maturity, were priced at a coupon rate of 4.714%.
This issuance follows a one-day virtual roadshow, targeting countries with high investment ratings. The roadshow attracted over 100 investors from key financial hubs, including the U.S., UK, continental Europe, Asia, and the Middle East. The interest demonstrated Kazakhstan's strong reputation as a high-quality issuer in the global market.
A key factor in the bond's success was the recent upgrade of Kazakhstan's sovereign rating by Moody's to Baa1 with a stable outlook. This positive rating, coupled with the government's strategic timing, helped secure favorable issuance conditions. Demand for the bond surged, with the order book reaching almost $6bn, allowing the Ministry of Finance to set the yield at 4.714%, with a narrow spread of 88 basis points over U.S. Treasury bonds.
The spread of 88 basis points is among the lowest for emerging markets, surpassing several countries with stronger “A” ratings, including Saudi Arabia, Chile, and Poland. This reflects strong investor confidence in Kazakhstan’s economic policies and financial stability.
The bond issuance is expected to bolster Kazakhstan’s financial resilience and provide a benchmark for other national and corporate issuers seeking to enter international capital markets. The eurobonds are listed on both the London Stock Exchange and the Astana International Financial Centre Exchange.
Citi, JPMorgan, and Societe Generale acted as the international lead managers for the deal, while BCC Invest was the local organizer.
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