The Ministry of Finance of Kazakhstan will borrow $1.9 billion in the open market in June to cover the deficit of the state budget. This is a 53% increase over May when the government issued bonds for $1.2 billion, according to the Association of the Financiers of Kazakhstan (AFK), citing official data published at the Kazakhstan Stock Exchange (KASE).
Most of the offerings in June will include bonds with a maturity of one year, three years, five years and six years for $225 million each. An additional $202 million will be raised with the help of eight-year maturity bonds and $180 million through two-, four- and seven-year maturity.
The ministry plans that the peak of offerings will take place on June 18 ($540 million); $517 million bonds will be placed on June 4; $495 million bonds on June 11 and $405 million on June 25. All these offerings will be conducted through auctions. No details about coupon rates and cut-off prices were provided. The average public securities yield rate was about 10.74% to 12.25% in May.
The AKF also pointed out that the administration of the Pavlodar region placed two-year maturity bonds at a 0.35% interest rate for $3.1 million on June 3.
As of late May 2024, there were $56 billion worth of public securities on KASE, a 3% increase over the month. The amount of public debt traded has increased by 53.2% to $1.7 billion. According to the national law on the state budget in 2024, its deficit shouldn’t exceed $7.8 billion or 2.6% of the GDP. The non-oil deficit is going to reach $19.5 billion; it will be offset by oil and gas revenue. The state budget is expected to be financed at the level of $7.8 billion this year.
