Today, September 7 of this year, the Ministry of Finance of the Republic of Kazakhstan successfully completed its second issuance of sovereign Panda bonds on the Chinese stock market, in a total volume of RMB 6.6 billion. The Panda bonds were placed in two tranches: a 3-year tranche at a coupon rate of 1.82% per annum in the amount of RMB 5 billion, and a 5-year tranche at a coupon rate of 1.95% per annum in the amount of RMB 1.6 billion.

Kazakhstan has once again secured financing in the Chinese market on terms comparable to those available to countries with higher "A" category credit ratings. The strong investor interest reflects a positive assessment of the economic and structural reforms being pursued in Kazakhstan, aimed at diversifying and strengthening the resilience of the economy.

The issuance follows the upgrade of Kazakhstan's sovereign credit rating by S&P from "BBB-" to "BBB" with a "Stable" outlook, reflecting sustainable growth prospects and a low level of government debt, which stands at 20.9% of GDP. External government debt stands at 4.5% of GDP, one of the lowest levels in the world.

The placement took place against the background of further strengthening of a comprehensive strategic partnership between Kazakhstan and China. The partnership has acquired an unprecedentedly high level, covering almost all key areas - from trade and investment to energy, transport, industrial cooperation and digitalization. Deepening cooperation in the capital markets, including through the entry of Kazakhstani issuers into the Chinese market, serves as a practical reflection of this course.

The placement took place against the backdrop of the further strengthening of the comprehensive strategic partnership between Kazakhstan and China. The partnership has reached an unprecedentedly high level, encompassing virtually all key areas — from trade and investment to energy, transport, industrial cooperation, and digitalization. The deepening of cooperation in capital markets, including through the entry of Kazakhstani issuers into the Chinese market, serves as a practical reflection of this course.

The steady expansion of Kazakhstan's presence in international capital markets contributes to broadening funding sources, diversifying the debt portfolio, and building sustainable access to a diverse range of investors. The Ministry of Finance will continue to pursue a balanced approach to sovereign borrowing, taking into account market conditions and the objectives of effective public debt management. This placement of three-year and five-year tranches further contributes to the development of Kazakhstan's sovereign yield curve in Chinese renminbi and establishes a benchmark for future issuances by Kazakhstani quasi-sovereign and corporate issuers.

China International Capital Corporation Limited (CICC) acted as Lead Global Coordinator for the issuance. China Construction Bank Limited (CCB), Industrial and Commercial Bank of China Limited (ICBC), The Export-Import Bank of China, and Bank of China Limited (BOC) served as Joint Lead Managers. Teniz Capital Investment Banking JSC acted as local manager for the transaction.

Source : https://www.gov.kz/memleket/entities/minfin/press/news/details/1287189?lang=ru