Kazakhstan places second sovereign panda bond issue worth 6.6 billion yuan

September 7, 2026 at 04:52 PM2 min

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Kazakhstan's Ministry of Finance placed its second sovereign panda bond issue on the Chinese market on September 7, raising 6.6 billion yuan. The bonds were issued in two tranches: 5 billion yuan at 1.82% for three years and 1.6 billion yuan at 1.95% for five years. The placement follows S&P's upgrade of Kazakhstan's sovereign rating to BBB with a stable outlook.

Key Facts

Kazakhstan placed 6.6 billion yuan in panda bonds on September 7, 2026.
The three-year tranche of 5 billion yuan carries a coupon of 1.82%.
The five-year tranche of 1.6 billion yuan carries a coupon of 1.95%.
S&P upgraded Kazakhstan's sovereign credit rating from BBB- to BBB with a stable outlook.
Kazakhstan's external government debt is 4.5% of GDP, one of the lowest in the world.

Bond Placement Details

The Ministry of Finance placed the bonds in two tranches on the Chinese bond market. The three-year bonds total 5 billion yuan at 1.82% per annum. The five-year bonds total 1.6 billion yuan at 1.95% per annum. China International Capital Corporation Limited acted as lead underwriter. Joint lead underwriters included China Construction Bank, ICBC, Export-Import Bank of China, and Bank of China.

Credit Rating and Debt Metrics

S&P upgraded Kazakhstan's sovereign rating from BBB- to BBB with a stable outlook. The upgrade reflects sustainable economic growth prospects and low government debt of 20.9% of GDP. External government debt stands at 4.5% of GDP, among the lowest globally. Kazakhstan attracted financing on terms comparable to countries with higher A-category credit ratings.

Strategic Partnership with China

The placement occurred amid further strengthening of the comprehensive strategic partnership between Kazakhstan and China. The partnership covers trade, investment, energy, transport, industrial cooperation, and digitalization. Deepening capital market cooperation, including Kazakh issuers entering the Chinese market, reflects this course. The issuance helps build Kazakhstan's sovereign yield curve in Chinese yuan and sets a benchmark for future quasi-sovereign and corporate issuers.