Kazakhstan set to revive stalled Eurobond issue

By bne IntelliNews March 3, 2014

bne -

The Kazakh government is set to issue a sovereign Eurobond this year, after putting off a plan to raise $1bn last year. Should it go ahead, it would be Astana's first foray onto the international markets for 13 years.

Finance Minister Bakhyt Sultanov said the issue will take place in 2014, although he offered no details on any specific timing, according to a statement published on the finance ministry's website on February 28.

"This year, in order to reduce pressure on the liquidity of the domestic market, we plan to issue Eurobonds on foreign markets," Sultanov announced at a cabinet meeting the previous day. "This will be the first issue of Eurobonds in the last 13 years. It will form the benchmark for Kazakh companies attracting outside capital and will reduce the cost of borrowing."

Kazakhstan's last sovereign Eurobond issue was in 2000, when the country raised $350m. Those bonds were redeemed in 2007.

At the same time, Astana is keen to keep a lid on credit growth in the economy, with unsecured retail lending in particular looking a risk to a banking sector only just getting back to its feet after the government was forced to bail it out in 2009. "[I]n order to ensure economic security," Sultanov added, "we have worked out measures to monitor and regulate the process of debt management in the quasi-public sector."

While the sovereign has not been in international markets for many years, state-owned organisations have been raising funds recently. Oil and gas company KazMunaiGas borrowed $3bn in a substantially over-subscribed two-part bond issue in April, while agricultural holding KazAgro issued $1bn worth of Eurobonds in May.

The Kazakh government had previously announced in May that it was planning a $1bn sovereign Eurobond. "We are going to the external markets not for money but for credit, for loans, for benchmarks and in order to make ourselves present in this market," then-finance minister Bolat Zhamishev told a European Bank for Reconstruction and Development (EBRD) meeting in Istanbul.

Related Articles

Retail trade slows in Kazakhstan amid economic uncertainty

Naubet Bisenov in Almaty - A free-floating exchange regime for Kazakhstan’s currency, the tenge, is taking its toll on retail trade as the cost of imports rise. While prices have not changed ... more

bne:Chart - Russia begins to steady the ship according to latest Despair Index

Henry Kirby in London - Ukraine and Russia’s latest “Despair Index” scores suggest that the two struggling economies could finally be turning the corner, following nearly two years of steady ... more

New Kazakh central bank governor re-adopts free floating regime

bne IntelliNews -   The National Bank of Kazakhstan, the central bank, has re-adopted a free-floating exchange regime under the new governor, Daniyar Akishev, who has ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss