Falling oil prices and fears of an imminent currency devaluation failed to dampen demand for Kazakhstan’s first international sovereign bond for more than 14 years in October.
The $2.5 billion dual-tranche bond attracted more than $11 billion of orders and priced at the lowest levels ever achieved by a CIS sovereign, with 10-year and 30-year yields set at 4.07% and 5.12% respectively.
Analysts say the deal’s success is partly due to Kazakhstan’s strong economic fundamentals – GDP grew at 6% last year and is forecast to expand by a further 4% this year, while public sector debt amounts to barely 12% of GDP – and partly to the lack of activity elsewhere in the region.
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