Kazakhstan Sets New Benchmark with Record Eurobond Issuance

Kazakhstan has once again drawn significant attention from global investors with its impressive five-year Eurobond issuance in October 2025. The country successfully raised $1.5 billion at a historically low yield of 4.412%, just 85 basis points above U.S. Treasuries. This issuance saw orders soaring to nearly $4.4 billion, almost tripling the offering, with strong interest from Europe, the U.S., and Asia.

Achieving the lowest yield in its history, Kazakhstan's bond was priced more competitively than those of higher-rated countries like Poland and Qatar. The Finance Ministry attributes this success to investor confidence in Kazakhstan's economic policies and fiscal reforms. The nation's strong budgetary measures in 2025 have enhanced perceptions of its policy discipline, allowing it to secure funding at favorable rates.

Earlier in June, Kazakhstan had already made waves with a $2.5 billion dual-tranche Eurobond, featuring a 7-year note at 5.0% and a 12-year note at 5.5%. The overwhelming demand from international investors underscored Kazakhstan’s strong market appeal, reflecting its low debt levels and reform-driven economic strategy.

Kazakhstan's fiscal strength is backed by substantial reserves and a robust credit rating. Fitch Ratings maintains a 'BBB' rating with a Stable Outlook, noting Kazakhstan's low government debt and significant foreign assets. Meanwhile, S&P Global Ratings has upgraded its outlook to Positive, citing effective deficit reduction and institutional reforms.

In contrast, Uzbekistan's February 2025 sovereign issue raised $1.5 billion across multiple currencies but at higher yields, reflecting its emerging status. Despite this, Uzbekistan's strong demand and Fitch’s upgrade to 'BB' highlight ongoing economic reforms and growth.

Kyrgyzstan made its debut in May 2025 with a $700 million Eurobond, priced at 7.75%. The issue was well-received, attracting substantial interest despite its higher-risk profile, marking a successful entry into international markets.

Kazakhstan remains Central Asia’s leading sovereign borrower, with Uzbekistan and Kyrgyzstan also making significant strides. These developments signal a more diversified and resilient financial environment in the region, as these nations continue to enhance investor confidence and access global capital markets.