KazMunayGas Considers Issuing Yuan-Denominated Bonds — Bloomberg

Kazakhstan’s national oil and gas company, KazMunayGas, is exploring the possibility of issuing yuan-denominated bonds, known as panda and dim sum bonds, Orda.kz reports.

According to Bloomberg, the company sees these instruments as a potentially more cost-effective way to attract foreign investment. KMG Chairman Askhat Khasenov said both types of bonds are under review.

Panda bonds are issued by foreign companies and traded on China’s domestic market, while dim sum bonds are yuan-denominated securities issued and traded outside mainland China, typically in Hong Kong.

KMG is considering both.

Khasenov noted that each option “offers good conditions,” and the proceeds could be converted into U.S. dollars.

Bloomberg reports that China’s debt market has recently gained popularity among foreign borrowers due to lower financing costs.

The push for wider international use of the yuan has intensified amid ongoing trade tensions with the U.S. Recent issuers include Nestlé, and Kyrgyzstan has announced plans to raise up to $696 million through dim sum bonds.

A final decision by KazMunayGas will depend on a comprehensive price analysis.

Original Author: Nikita Drobny