The Republic of Kazakhstan successfully completes second issuance of sovereign panda bonds

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 backdrop of the further strengthenin...