Kazakhstan’s Ministry of Finance is taking orders for two yuan-denominated bond issues, according to the Finmentor Telegram channel. Kazakhstan had already raised 3.4 billion yuan through its debut sovereign panda bond issue in China earlier this year.
According to economist Arman Batayev, the Astana International Exchange (AIX) is collecting orders for two bond issues denominated in Chinese yuan. The total planned issuance amounts to 6.6 billion yuan (approximately $983 million).
The first issue is worth 5 billion yuan ($745 million) and matures on Sept. 7, 2029. The target yield for the three-year bonds is 1.8% to 1.9% per annum.
The second issue, worth 1.6 billion yuan, has a five-year maturity, with the bonds due in 2031. The target yield is 1.9% to 2.2% per annum. Interest is expected to be paid annually. The yield parameters are preliminary, and the final rates have yet to be determined. The order book is open from 11 a.m. to 2 p.m. Astana time.
In May, the Ministry of Finance issued Kazakhstan’s debut sovereign panda bonds on China’s domestic bond market. The issue totaled 3.4 billion yuan (about $500 million), with a three-year maturity and a 1.9% annual coupon rate. This issue was the only foreign currency-denominated government bond issued in eight months.
According to experts, loans in Chinese currency are important for Kazakhstan due to the low cost of debt and the need to finance large projects undertaken by Kazakh companies in partnership with Chinese partners.
