Kazakhstan taps into investors to raise capital

Michael Bow
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KAZAKHSTAN will return to the international bond markets after nearly 15 years to raise cash from investors.

The central Asian country, known for its eye-catching capital Astana, has man­dated Citigroup HSBC and JP Mor­gan to raise the cash from the international investment community,

The three banks will hold a series of meetings throughout next week, kicking off in London on Monday to solicit interest for the bonds.

The roadshow will move on to New York, Boston, and San Francisco before wrapping up in Los Angeles on Friday.

It is the first cash raised in dollars by the Republic of Kazakhstan since 2000 and underscores the healthy level of demand for high yielding frontier market investments from fund managers.

Other frontier countries coming to the bond market in recent years have included Rwanda, Mongolia, Jordan and Zambia.

Kazakstan, which saw economic growth decline five per cent in 2012 before growing six per cent in 2013, is rated Baa2 by Moody's and BBB+ by Standard & Poor’s.

Potential investors have been warned about the threat of the Russia-Ukraine conflict causing further instability in the region.