BAKU, Azerbaijan, September 8. Kazakhstan’s
Ministry of Finance placed its second sovereign panda bond issue on
the Chinese stock market on September 7, raising a total of 6.6
billion yuan (about $983.4 million), the ministry said.


The panda bonds were placed in two tranches: three-year bonds
worth 5 billion yuan (about $745 million) at an annual yield of
1.82%, and five-year bonds worth 1.6 billion yuan (about $238.4
million) at an annual yield of 1.95%.


"Kazakhstan has once again raised financing on the Chinese
market on terms comparable to those of countries with higher 'A'
category credit ratings. The high level of investor interest
reflects a positive assessment of the economic and structural
reforms being implemented in Kazakhstan aimed at diversifying and
increasing the resilience of the economy," the ministry said.


The issue followed S&P's upgrade of Kazakhstan's sovereign
credit rating from BBB- to BBB with a stable outlook, reflecting
sustainable economic growth prospects and a low level of public
debt, which stands at 20.9% of GDP.


At the same time, external public debt accounts for 4.5% of GDP,
one of the lowest levels globally, according to the ministry.







"The placement took place against the backdrop of further
strengthening of interstate relations between Kazakhstan and China.
The consistent policy pursued by the leaders of the two countries
contributes to deepening the comprehensive strategic partnership,
including in trade, investment and financial spheres. The entry of
Kazakh issuers into the Chinese market is a practical reflection of
this policy," the ministry said.


The three-year and five-year tranches will further contribute to
the formation of Kazakhstan's sovereign yield curve in Chinese yuan
and create a benchmark for subsequent issuances by Kazakh
quasi-sovereign and corporate borrowers, the ministry noted.


China International Capital Corporation Limited (CICC) acted as
the lead arranger of the issue. 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) acted
as joint lead arrangers. Teniz Capital Investment Banking served as
the local transaction manager.