Bookbuilding for Kazakhstan's dollar-denominated Eurobonds reaches nearly $6 bln amid solid demand

ASTANA. Oct 4 (Interfax) - Kazakhstan has successfully issued 10-year U.S. dollar-denominated Eurobonds totaling $1.5 billion at a coupon rate of 4.714%, the country's Finance Ministry said.

"The Republic of Kazakhstan has successfully returned to the U.S. dollar Eurobond market, issuing a $1.5 billion bond maturing in 10 years at a coupon rate of 4.714%. Overall bookbuilding has shown robust demand, reaching nearly $6 billion, allowing us to set the coupon rate and yield at 4.714%, with a spread of 88 basis points over U.S. Treasury bonds," according to the statement on Friday.

The Finance Ministry described the spread as "record-breaking for emerging markets."

A one-day virtual roadshow was conducted before the issuance, available only to countries with high investment ratings. Consultations were held with over 100 investors from the U.S., UK, continental Europe, Asia, and the Middle East during this time.

The Eurobonds are listed on the London Stock Exchange and the Astana International Exchange (AIX) of the Astana International Financial Centre (AIFC).

Citi, JPMorgan, and Societe Generale were international joint lead managers and bookrunners for the transaction, with BCC Invest acting as the Kazakhstan-based organizer.

Kazakhstan's Finance Ministry earlier announced the start of the bookbuilding process for the $1.5 billion U.S. dollar Eurobonds. The face value of each bond is $200,000, with the indicative coupon rate initially set at 4.87%, totaling 7,500 bonds issued.

Settlement is on October 7-8, 2024.

The funds raised will be allocated to strengthen Kazakhstan's position in global markets and financing state development programs.