Astana (TDI): Kazakhstan has made a comeback to the international capital market, successfully raising $1.5 billion through the issuance of Eurobonds for the first time since 2015.
The 10-year Eurobonds were priced at a coupon rate of 4.714%, following a one-day virtual roadshow that targeted investors from countries with high investment ratings.
The roadshow saw participation from over 100 investors across major financial hubs, including the United States, United Kingdom, continental Europe, Asia, and the Middle East, underscoring Kazakhstan’s strong standing as a quality issuer in the global market.
A critical factor behind the success of this issuance was the recent upgrade of Kazakhstan’s sovereign credit rating by Moody’s to Baa1 with a stable outlook.
This positive rating, coupled with favorable market conditions, allowed the Kazakh Ministry of Finance to secure an attractive yield of 4.714%.
The bond garnered robust interest, with the order book swelling to nearly $6 billion, enabling the ministry to narrow the spread to 88 basis points over U.S. Treasury bonds.
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This spread is among the lowest for emerging markets, even outperforming several higher-rated nations such as Saudi Arabia, Chile, and Poland.
The strong investor demand reflects rising confidence in Kazakhstan’s economic policies and financial stability.
Kazakhstan’s return to the eurobond market is expected to strengthen its financial position while setting a benchmark for other national and corporate issuers planning to access international markets.
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The bonds 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 issuance, with BCC Invest serving as the local organiser.
