Samruk-Kazyna Raises 3 Billion Yuan on AIX in Record-Low Panda Bond Deal

Samruk-Kazyna has placed a debut issue of panda bonds worth 3 billion yuan, or 208 billion tenge, on the Astana International Exchange, Orda.kz reports. The yield was 2.18%, the lowest ever for issuers from Central Asia.

The bonds have a three-year maturity. AIX said the placement was the first by a Kazakh issuer in China’s domestic debt market. The exchange said the deal reflected growing investor confidence in Kazakhstan and its credit rating.

Bank of China acted as the lead underwriter and bookrunner. China Construction Bank and Deutsche Bank’s China branch also took part in organizing the issue. On the Kazakh side, Teniz Capital served as underwriter and bookrunner.

AIX said the issue drew strong demand from institutional investors, although it did not specify the countries they came from.

In early April, Uzbekistan’s Finance Ministry placed bonds worth 12.2 trillion soums, or $1 billion, on international markets. That was the largest issue in Central and Eastern Europe, the Middle East and Africa in the past 15 years. The yield was 12.25%, lower than on Uzbekistan’s comparable recent issues.

Original author: Alexey Afonsky

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