Best central Asian sovereign:Kazakhstan
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Best central Asian sovereign:Kazakhstan

Kazakhstan launched its comeback deal in September 1999. A Wve-year $200 million issue demonstrated that Kazakhstan, despite being rated single-B and a neighbour to troublesome Russia, does have access to the international markets. The bond was, in fact, the Wrst issue from the Commonwealth of Independent States following the Russian crisis of August 1998.


The sovereign achieved this even though 1999 was not a particularly good year for Kazakhstan's economy. Its number one export market, Russia, had hit trouble and oil prices were then at their lowest levels for 12 years. Meanwhile it had proved impossible to proceed smoothly with restructuring of the domestic economy. Privatization of state assets had been delayed. And the country's prospects for borrowing in the international markets had suVered when it was downgraded by Standard&Poor's in September 1998 (from BB- to B+), and by Moody's in February 1999 (from Ba3 to B).



Yet in September 1999 investors' conWdence in Kazakhstan's economic fundamentals and in its ability to work through these problems had improved. ABN Amro, which lead-managed the bond with Deutsche Bank, highlighted Kazakhstan's outstanding performance in meeting the IMF's stated targets, reducing its economic links with Russia, attracting foreign direct investment, and proving its future commitment to reform, explains Reid Payne, head of emerging markets syndicate at ABN Amro.




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