Kazakhstan gets maximum 8% weight in JPMorgan frontier bond index

September 15, 2026 at 03:52 PM2 min

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Kazakhstan will receive the maximum 8% country weight in JPMorgan's new GBI-EM Edge index for frontier market government bonds, set to launch by the end of September. The index will cover 26 countries with nearly $330 billion in eligible bonds. Foreign investors have already increased their holdings of Kazakh government securities to KZT 2.5 trillion by the end of June.

Key Facts

Kazakhstan will receive the maximum 8% country weight in JPMorgan's GBI-EM Edge index, equal to Vietnam, Pakistan, and Bangladesh.
The index will cover 26 countries with nearly $330 billion in bonds eligible for inclusion.
Non-resident holdings of Kazakh government securities reached KZT 2.5 trillion ($5.4 billion) by the end of June, up 28.3% in the first half of the year.
Real yields on Kazakh government securities ranged from 5.7% to 7.4% in the first half of the year, according to the AFK.

Index Composition

JPMorgan plans to launch the GBI-EM Edge index by the end of September. The index is designed for frontier markets, relatively less accessible markets outside JPMorgan's main emerging market benchmark. Kazakhstan will receive the maximum 8% country weight, the same as Vietnam, Pakistan, and Bangladesh. Other major components will include Egypt, Morocco, Nigeria, and Sri Lanka.

Foreign Investment Trends

Foreign investors began actively buying Kazakhstan's government debt even before JPMorgan's decision. According to the Analytical Center of the Association of Financiers of Kazakhstan (AFK), non-resident holdings of government securities reached KZT 2.5 trillion, or about $5.4 billion, by the end of June. During the first half of the year, their portfolio grew by 28.3%, while the share of non-residents in the government securities market increased from 6.2% to 6.9%. In June alone, foreign investors added KZT 185.1 billion, or about $400 million.

Yield Attractiveness

Kazakhstan has maintained a high base rate to combat inflation, which has kept yields on government bonds high. According to AFK, real yields on government securities ranged from 5.7% to 7.4% in the first half of the year. The association's analysts also linked strong demand to expectations of a gradual reduction in the base rate. The tenge strengthened by 2% in the first half of the year, benefiting foreign bondholders.