Kazakhstan to offer two tranches of Eurobonds worth at least $1 bln in total

ASTANA. June 24 (Interfax) - Kazakhstan's Finance Ministry will offer two tranches of Eurobonds worth at least $500 million each, says a statement filed with the Astana International Exchange (AIX).

The country will issue 12-year Eurobonds for a minimum of $500 million at 5.625%, along with seven-year Eurobonds for an equal amount at 5.25% annual yield.

The order book will be open on Tuesday from 14:00 to 18:00 Astana time.

The planned offering is potentially 69% below the $2.5 billion figure previously indicated by Finance Minister Madi Takiyev.

It emerged on June 23 that Kazakhstan would place seven-year and 12-year tranches of dollar-denominated Eurobonds on three exchanges - the London Stock Exchange (LSE), the Astana International Exchange (AIX) and the Kazakhstan Stock Exchange (KASE).

Citi, JP Morgan, and Societe Generale are acting as global coordinators, and Halyk Finance and Teniz Capital as joint lead managers.

Kazakhstan placed $1.5 billion in 10-year 4.714% bonds in October 2024, the last time it tapped the international bond market. 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.