Kazakhstan has issued panda bonds on the Chinese stock market for the first time, Kazakhstan’s Ministry of Finance reported.
The issuance of yuan-denominated bonds was completed on May 26, 2026. The issue size amounted to 3.4 billion yuan (roughly $500 million). The bonds have a three-year maturity and a coupon rate of 1.9% per annum.
According to the Ministry of Finance, during bookbuilding, demand for the bonds was twice the supply. The ministry believes this proves the trust of Chinese institutional investors in Kazakhstan’s macroeconomic indicators, including sustainable economic growth and low government debt.
Kazakhstan set a record by issuing bonds on the Chinese stock market at the lowest rate among BBB-rated countries and at a level comparable to AA-rated sovereign issuers.
The panda bond issuance also served to establish a benchmark for future offerings by quasi-public and corporate issuers.
The panda bonds will be listed on the Beijing Financial Assets Exchange and the Astana International Exchange. The Ministry of Finance said the listing is expected to further strengthen financial cooperation between Kazakhstan and China.
The issuance was part of the approved external public borrowing program. At the same time, government debt stands at 20% of GDP, given the 32% limit. The ministry noted that this is one of the lowest levels globally.
