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Kazakhstan Fund Eyes Yuan Bonds
2 Apr
Summary
- Kazakhstan's sovereign wealth fund plans debut panda bond sale.
- The fund may raise up to 3 billion yuan ($435 million) in China.
- China's onshore market is an attractive funding source for developing economies.
Kazakhstan's sovereign wealth fund, Samruk-Kazyna, is gearing up for its inaugural panda bond sale, with issuance possible as soon as this month. The fund could aim to secure as much as 3 billion yuan, equivalent to $435 million, from China's onshore market. This market is becoming increasingly attractive for developing nations, supported by substantial liquidity and currency stability, according to the New Development Bank.
Samruk-Kazyna holds investment-grade ratings from all three major credit agencies, with Fitch Ratings affirming its strong position. The fund manages critical national companies, representing a significant portion of Kazakhstan's economic wealth and averaging 34% of the nation's GDP. Despite global concerns affecting emerging assets, Kazakhstan's status as a major oil producer positions it well to attract investors interested in energy-linked investments outside the Middle East.
