The Development Bank of Kazakhstan (DBK) has issued RMB3.7 billion in bonds to finance investment projects outside the country’s raw materials sector. According to the bank’s announcement, investor orders exceeded RMB25 billion, allowing it to improve pricing from its initial guidance, DKNews.kz reports.
DBK, a subsidiary of Kazakhstan’s Baiterek holding company, raised the funds through five- and ten-year tranches. The securities are listed on the Astana International Exchange (AIX) and the Hong Kong Stock Exchange.
Terms of the bond offering
The issue comprises two tranches with different maturities and coupon rates:
| Maturity | Issue size | Annual coupon |
|---|---|---|
| Five years | RMB2 billion | 2.25% |
| Ten years | RMB1.7 billion | 2.75% |
BCC Invest acted as the sole local manager for the Development Bank of Kazakhstan’s two-tranche offshore renminbi (CNH) bond offering, totalling RMB3.7 billion. The company helped arrange the placement alongside international financial institutions.
AIX independently confirmed the total issue size, maturities and coupon rates.
“Dim sum” bonds are denominated in Chinese yuan and issued outside mainland China. They allow borrowers such as DBK to raise funds in the Chinese currency from international investors.
The coupon is the interest paid to bondholders. These rates apply to DBK’s own borrowing and do not determine the interest rates that businesses will pay on loans financed with the proceeds.
Strong demand helped improve pricing
Investor orders exceeded RMB25 billion against an issue size of RMB3.7 billion. DBK said demand enabled it to improve pricing by 50–55 basis points from initial guidance, equivalent to 0.50–0.55 percentage points.
The offering attracted investors from Kazakhstan, other Asian markets, Europe and the Middle East.
DBK described the transaction as the largest yuan-denominated bond issue by an issuer from the Commonwealth of Independent States (CIS). It also reported a record-low interest rate for issuers from the region in the dim sum market. Both comparisons are the issuing bank’s assessments.
Proceeds earmarked for industry and infrastructure
Marat Yelibayev, Chairman of DBK’s Management Board, linked the transaction to the bank’s efforts to diversify its funding sources:
“The successful placement of bonds in Chinese yuan reflects the international investment community’s strong confidence in DBK’s financial stability and Kazakhstan’s economic potential. Record demand, exceeding the offering by almost seven times, together with the lowest interest rates, confirms the soundness of our strategic approach to diversifying funding sources. The funds raised will enable us to expand long-term lending support for major projects in manufacturing and infrastructure,” Yelibayev said.
According to DBK, the bank financed 77 projects worth KZT2.3 trillion in 2025. Proceeds from the new bond issue will support investment projects in non-resource sectors, although the announcement does not identify individual borrowers, loan amounts or disbursement dates.
DBK’s parent company is also pursuing investment partnerships to fund projects in Kazakhstan. Our earlier report, available in Russian, explains Baiterek’s plans with Chinese partners for an investment fund targeting up to US$200 million, with at least 70% of its investments intended for Kazakhstan.
