The issuance comes after a one-day virtual roadshow, limited to investors from countries with high investment ratings. The roadshow garnered significant attention, with consultations held with over 100 investors from the U.S., the UK, continental Europe, Asia, and the Middle East. The high level of participation underscored robust investor confidence in Kazakhstan’s financial policies and stability as a reliable issuer in the international capital markets.

A key factor contributing to the successful issuance was Kazakhstan’s recent credit rating upgrade by Moody’s to Baa1 with a stable outlook, the highest sovereign rating the country has ever achieved. This upgrade reflects Kazakhstan’s continued progress in economic and financial reforms, providing a strong foundation for its re-entry into the global bond market.

Kazakhstan’s Ministry of Finance reported that the transaction achieved optimal parameters in terms of both volume and pricing. The order book steadily grew throughout the day, reaching almost $6 billion—four times the amount initially sought—allowing the coupon rate and yield to be set at 4.714%. The spread over U.S. Treasury bonds was a mere 88 basis points, one of the lowest ever recorded for emerging markets issuing 10-year sovereign bonds.

To put this in context, Kazakhstan’s spread is lower than the secondary market levels of several “A” rated countries, including Saudi Arabia, Chile, and Poland, highlighting international investors’ high confidence in Kazakhstan’s economic management, financial outlook, and social stability.

In addition to signaling strong investor interest, the issuance of these eurobonds will play a critical role in supporting Kazakhstan’s financial stability and fueling its economic growth. The favorable terms of the placement also set a benchmark for other Kazakhstani issuers, both quasi-governmental and corporate, looking to enter international capital markets.

The bonds are dual-listed on the London Stock Exchange (LSE) and the Astana International Exchange (AIX), reinforcing Kazakhstan’s ambitions to position the Astana International Financial Centre (AIFC) as a key player in the global financial market. Citi, JPMorgan, and Societe Generale acted as international joint lead managers and bookrunners, while BCC Invest JSC served as the local organizer for the deal.

This eurobond issuance not only strengthens Kazakhstan’s financial outlook but also signals its growing prominence as a high-quality, trusted issuer in the global financial community.