Azernews.Az

By Bloomberg

Kazakhstan plans to sell dollar bonds on Tuesday, the first among developing nations to benefit from the calming effect of Greece’s deal with creditors.

The central Asian country looks to sell 10-year bonds at an initial guidance of about 300 basis points over Treasuries and 30-year notes at about 350 basis points over Treasuries, according to a person familiar with the matter who asked not to be identified because they’re not authorized to speak publicly.

Rated BBB+ by Fitch Ratings, the third-lowest investment grade, Kazakhstan comes back to the international market after raising $2.5 billion in 10-year and 30-year bonds last October. Kazakhstan plans to sell more than $2 billion in Eurobonds to finance the budget, Interfax cited Economy Minister Erbolat Dosayev as saying on June 24.

“The issuance window is opening and the Kazakhstan deal will be a test of primary-market appetite,” Mark Baker, who helps oversee $1.5 billion in emerging-market debt at Standard Life Investments Ltd. in London, said by e-mail. “I expect demand for both tranches to be strong as the government seems willing to pay up for the certainty of getting the deal done.”

Greek Prime Minister Alexis Tsipras faces two days of parliamentary maneuvering in Athens to secure approval for a package of austerity measures he agreed with European creditors Monday. The bill, to be voted on Wednesday, is a precondition for creditors to begin talks on a new loan of as much as 86 billion euros ($94 billion).

The yield on Kazakh dollar bonds due in 2024 traded at 4.78 percent, 89 basis points below this year’s high on Jan. 6.