Kazakhstan returns to Eurobond market after almost 10 years

Kazakhstan has returned to the Eurobond market for the first time since 2015, issuing a $1.5 billion 10-year bond with a coupon rate of 4.714%, Report informs via the Kazakh Ministry of Finance.

The Eurobonds are listed on the London Stock Exchange and the Astana International Financial Centre Exchange.

Citi, JPMorgan, and Societe Generale acted as international organizers, joint lead managers, and bookrunners for the deal, while JSC "BCC Invest" served as the Kazakhstani organizer.

"The deal was preceded by a one-day virtual roadshow, which is only available to countries with high investment ratings. The total order book showed steady growth, reaching nearly $6 billion, which allowed setting the coupon rate and yield at 4.714%, with a premium to US Treasury bonds of 88 basis points," the statement says.

The ministry notes that this Eurobond issue will strengthen the country's financial stability and support its economic growth.

"Moreover, the favorable placement conditions will create a benchmark for other Kazakhstani issuers, both quasi-governmental and corporate, to enter international capital markets," reads the report.