Kazakhstan’s Ministry of Finance wants to place government stocks (GS) worth approximately $13.20 billion on the stock market. This is a 32.7% increase over the 2023 plan (approximately $9.94 billion) and a 23.2% increase over the funds raised in 2024 (approximately $10.71 billion), according to the agency’s website.
According to the plan, the ministry is going to conduct 55 emissions, part of which will be an additional placement within those previously delivered. The maturity terms of the GSs range between one and 15 years. Remarkably, for stock with a 10-year maturity, it is planned to raise about $956 million. Once this happens, it will be the largest placement this year.
In 2024, the agency planned to raise $9.92 billion, marking a 5% increase year-on-year. However, according to the Kazakhstan Stock Exchange (KASE), the Ministry of Finance managed to raise just $10.71 billion. Thirty-eight new emissions were placed with an average yield varied between 10.74% and 13.5%.
In Kazakhstan, government stocks may be issued by the Ministry of Finance and the National Bank. As of Dec. 1 (the most recent data available), the volume of short-term notes in circulation amounted to $871.6 million, reflecting a 9.1% month-on-month decline and a 62% drop year-on-year. This decrease is associated with the regulator’s switching to deposit auctions while relying on deposits by credit organizations. Last year, the National Bank’s share in note trading on the secondary market accounted for 45.6%, or $1.67 billion of the total volume.
Furthermore, the Ministry of Finance issued Eurobonds worth $1.5 billion last year, marking the first dollar-denominated bonds since 2015. The funds raised were supposed to be used for supporting national programs.
The last Eurobond emission by Kazakhstan’s Ministry of Finance was placed on KASE in September 2019, with trading commencing in May 2020. These seven-year bonds were issued in euros with a current interest rate of 0.6% per annum.
According to the National Bank, Kazakhstan’s external debt stood at $165.8 billion as of Oct. 1, 2024, reflecting a $2.3 billion increase compared to the beginning of last year. Long-term external debt (exceeding one year) accounts for 87.2% of the entire debt structure. As of Oct. 1, government debt amounted to roughly $58.54 billion, or 22.6% of GDP, according to the Ministry of Finance. The volume of government debt traded on KASE reached approximately $51.82 billion, marking a 13.2% increase compared to 2023.
