Kazakhstan delays Eurobond offering amid market uncertainty

ASTANA. May 29 (Interfax) - Kazakhstan's Finance Ministry has not yet finalized terms for a planned Eurobond offering and continues monitoring market conditions, Deputy Finance Minister Dauren Temirbekov told Interfax.

"Not yet, no details available," Temirbekov said. "We expect to have more clarity in June-July. Preparations are underway, but market conditions must be favorable before we proceed with roadshows and final terms."

The Finance Ministry told Interfax that budget deficit financing primarily came from domestic markets "to support local capital development, mitigate currency risks and provide liquid investment instruments."

"The Finance Ministry continuously assesses international capital markets and will only proceed with foreign issuance under favorable conditions," it said.

Kazakhstan was considering issuing Eurobonds in July to cover the budget deficit.

Kazakhstan placed $1.5 billion in 10-year 4.714% bonds in October 2024. The premium or spread between these and U.S. Treasuries was 88 basis points, which the Kazakh Finance Ministry said was a "record for emerging countries." The issue was four times oversubscribed.

The government projects a 2025 budget deficit of 2.7% of GDP.