KazMunayGas issues 3.5 billion yuan Dim Sum bonds, first 10-year from Central Asia

September 1, 2026 at 10:00 AM2 min

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KazMunayGas issued 3.5 billion yuan ($520.3 million) in Dim Sum bonds, including the first 10-year tranche by a Central Asian company. The order book closed on Aug. 26 with over 25 billion yuan ($3.7 billion) in investor orders, more than seven times the issue size. The bonds are scheduled to be placed on Sept. 2.

Key Facts

KazMunayGas issued 3.5 billion yuan ($520.3 million) in Dim Sum bonds in two tranches: 1.5 billion yuan five-year bonds at 2.3% coupon and 2 billion yuan 10-year bonds at 2.8% coupon.
Investor orders exceeded 25 billion yuan ($3.7 billion), more than seven times the announced issue size, marking the largest order book for Dim Sum issues by issuers outside mainland China and Hong Kong.
Moody's assigned the bonds a Baa1 credit rating, matching KazMunayGas's rating.
The 10-year tranche is the first Dim Sum bond of that maturity issued by a company from Kazakhstan and Central Asia.
The bonds are scheduled to be placed on Sept. 2, with proceeds earmarked for KazMunayGas's investment program.

Bond Structure

The issue consists of two tranches: five-year bonds worth 1.5 billion yuan ($223 million) with a 2.3% annual coupon and a 2.45% yield, and 10-year bonds totaling 2 billion yuan ($297.3 million) with a 2.8% coupon and a 2.98% yield. KazMunayGas closed the order book on Aug. 26, and the bonds are scheduled to be placed on Sept. 2. Moody's assigned the bonds a Baa1 credit rating, matching KazMunayGas's rating. Proceeds from the issue are earmarked for KazMunayGas's investment program.

Investor Demand

Investor orders exceeded 25 billion yuan ($3.7 billion) at the peak, more than seven times the announced issue size. According to KazMunayGas, this was the largest order book in the history of Dim Sum issues by issuers outside mainland China and Hong Kong. Investors included banks, insurance companies, hedge funds, and sovereign investment funds. A two-day roadshow in Hong Kong preceded the issue.

Regional Benchmark

Financial analyst Andrei Chebotaryov said KazMunayGas became the first company in Kazakhstan and Central Asia to issue 10-year Dim Sum bonds, creating a long-term benchmark for yuan-denominated borrowing in the region. Chebotaryov wrote on his Telegram channel on Aug. 28 that a 10-year benchmark was formed for the first time in the region, opening a long-term yuan borrowing market that did not exist before. The deal provides a reference point for other Kazakh issuers considering yuan financing and broadens access to Asian capital markets, potentially reducing reliance on dollar financing, according to Chebotaryov and Energy Monitor.