Kazakhstan wealth fund raises 3b yuan with dim sum bond in Hong Kong
Kazakhstan's sovereign wealth fund Samruk-Kazyna JSC has raised 3 billion yuan (HK$3.53 billion) through its debut offshore dim sum bond issuance in Hong Kong. The two-tranche bond, listed on the Hong Kong and Astana exchanges, was more than three times oversubscribed, highlighting strong investor d
Kazakhstan's sovereign wealth fund Samruk-Kazyna JSC has completed bookbuilding and priced its debut offshore dim sum bond issuance in Hong Kong, raising a total of 3 billion yuan (HK$3.53 billion), the fund said.
The issuance comprises two tranches with tenors of three and five years which have been admitted for trading on the Hong Kong Stock Exchange (HKEX) and Astana International Exchange (AIX). The three-year bonds, amounting to 2 billion yuan, have an annual coupon of 2.15 per cent, while the five-year bonds, amounting to 1 billion yuan, carry a 2.3 per cent annual coupon.
Demand was more than three times oversubscribed, underscoring strong interest from international investors in the fund's credit profile and Kazakhstani issuers in the offshore yuan market, the fund said.
The transaction involved Citi, Guotai Junan International, Standard Chartered Bank, Bank of China, China CITIC Bank International and ICBC (Asia).
The proceeds will be used to finance investment projects undertaken by Samruk-Kazyna JSC, it said. The offshore yuan-dominated bond issuance marks another step in the fund's strategy to diversify its funding sources and broaden its international investor base, including by accessing liquidity in the offshore yuan market, one of the fastest-growing segments of the international debt market, it added.
A spokesperson of Hong Kong's Belt and Road Office said on social media that the deal is a solid testimony to Hong Kong as the Belt and Road Initiative's 'super value‑adder' and a global hub for yuan internationalization. It also represents the outcomes of the 'hub‑to‑hub' cooperation. Together with issuances by the Development Bank of Kazakhstan and KazMunayGas during the 11th Belt and Road Forum, Kazakh institutions have raised more than 10 billion yuan via dim sum bonds since the Chief Executive's visit to Central Asia earlier this year, marking a new historic milestone.