ASTANA – Kazakhstan has issued a $1.5 billion 10-year bond with a coupon rate of 4.714%, marking its first return to the U.S. dollar-denominated eurobond market since 2015, the Finance Ministry’s press service reported on Oct. 4.
Photo credit: gov.kz
The transaction followed a one-day virtual roadshow, accessible only to countries with high investment ratings, attracting over 100 investors from the United States, the United Kingdom, continental Europe, Asia, and the Middle East. This strong interest reflected investor confidence in Kazakhstan as a reliable and high-quality issuer on the international capital market, bolstered by Moody’s recent upgrade of the country’s sovereign rating to Baa1 (stable outlook).
The bond achieved a spread of 88 basis points over U.S. Treasury bonds, one of the lowest for emerging markets. This premium is below the secondary levels of several countries with an A rating, such as Saudi Arabia, Chile, and Poland, highlighting Kazakhstan’s growing credibility on the international stage.
“This eurobond issuance will strengthen the country’s financial stability and support its economic growth. In addition, the favorable placement conditions will create a benchmark for other issuers from Kazakhstan, both quasi-governmental and corporate, to enter international capital markets,” reads the press statement.
The eurobonds were listed on the London Stock Exchange and the Astana International Financial Centre Exchange.
