Kazakhstan Successfully Issues $1.5 Billion in Eurobonds
Kazakhstan has successfully 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.
The transaction was executed following a one-day virtual roadshow that was exclusively available to countries with high investment ratings, successfully engaging over 100 investors from the United States, United Kingdom, continental Europe, Asia, and the Middle East. Such significant interest serves as a testament to the strong investor confidence in Kazakhstan as a credible and high-quality issuer within the international capital market, particularly in light of Moody’s recent upgrade of the country’s sovereign rating to Baa1 (stable outlook).
The bond was issued with a spread of 88 basis points over U.S. Treasury bonds, which is among the lowest rates for emerging markets. Notably, this premium is lower than the secondary levels observed in several “A”-rated countries, such as Saudi Arabia, Chile, and Poland, thereby underscoring Kazakhstan’s enhanced credibility on the global 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.(Source:astanatimes)
