Central Asia

The Development Bank of Kazakhstan (DBK) has released price guidance for its second tenge Eurobond in five months.

Kazmunaygas’ (KMG) $3.25bn bond on Tuesday proved to be a beneficiary of the latest round of US sanctions against Russia sanctions, as investors sought a new oil play away from the volatility surrounding assets from the proscribed state.

Kazakhstan’s national oil company Kazmunaygas, rated Baa3/BB-/BBB-, has released initial price guidance for its dollar senior unsecured triple tranche 2025, 2030 and 2048 issue.

The Eurasian Development Bank has embarked on a roadshow for a three to five year tenge denominated Eurobond.

Nostrum Oil & Gas, the Kazakh independent oil and gas company listed in London, nipped into a busy bond market on Thursday to raise $400m to complete the refinancing of its bonds due 2019.

RusHydro, the Russian hydroelectric power generator, issued the first local currency Eurobond of 2018 with a three year note on Thursday. Bond bankers said that internationally cleared local currency bonds would gain increasing traction this year.

Kazakhstan is preparing to open up its local markets to foreign investors, having this week inked a memorandum of interest with Euroclear. After a big year for EM local currency issuance in 2017, investors and bankers are excited about the possibility of easier access to Kazakh local markets, writes Virginia Furness.

Making Kazakh domestic assets Euroclearable is a laudable aim. But in its treatment of international investors, the country needs to be aspire to similarly high standards if it is to succeed in opening up capital markets.

Kazakhstan is a step closer improving foreign investor access to its domestic market and has signed a memorandum of interest with Euroclear, which will allow the settlement provider to clear bonds denominated in tenge.

China has relaxed access to the onshore renminbi (CNY) foreign exchange market for overseas banks based in Cambodia, Kazakhstan, Mongolia and Thailand, all countries that fall under the Belt and Road initiative, GlobalRMB has learned.

A planned Eurobond from Tengri Bank, Kazakhstan’s 24th largest lender, failed to appear in the public market on Friday, when it had been expected to be priced.

Kazakhstan’s 24th largest lender Tengri Bank was asking investors this week to extend financing amounting to over 50% of its total assets. The bemused buy-side is not exactly piling in.