Yuan Instead of Dollars? KazMunayGas Draws Record Demand in Asia

KazMunayGas has priced a 3.5 billion yuan ($520 million) bond sale in Asia after investor orders exceeded 25 billion yuan, more than seven times the amount offered. The bonds are scheduled to settle on September 2, Orda.kz reports.

The issue is divided into two unsecured tranches:

• 1.5 billion yuan in five-year bonds with a 2.3% coupon and a 2.45% yield;
• two billion yuan in 10-year bonds with a 2.8% coupon and a 2.98% yield.

Moody’s assigned the bonds a Baa1 investment-grade rating, the same as KMG’s own rating, indicating moderate credit risk, according to a KASE document.

The securities are Dim Sum bonds — yuan-denominated debt issued outside mainland China. KMG plans to list them on the Hong Kong Stock Exchange and the Astana International Exchange.

KMG first entered the Dim Sum market in October 2025, raising 1.25 billion yuan. The new issue is almost three times larger and includes the company’s first 10-year yuan borrowing.

Before collecting orders, KMG held a two-day roadshow in Hong Kong and met Asian banks, insurers, hedge funds and sovereign investment funds. The company said the order book was the largest ever for a Dim Sum issue by a company outside China and Hong Kong.

Strong demand allowed KMG to secure its lowest-ever borrowing costs in the Eurobond market. The company plans to use the money for its investment program but has not disclosed which projects will receive funding.

Borrowing in yuan does not mean KMG is abandoning the dollar. As Orda.kz previously explained, Kazakh companies are turning to Chinese currency mainly because of lower interest rates, growing trade with China and demand from Asian investors.

Original author: Alexander Zhdanov

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