Jambyl and East Kazakhstan Regions Raise 5.1 Billion Tenge via KASE Bond Placement

The Kazakhstan Stock Exchange hosted specialised bond placement auctions on June 23 for two regional government bodies. Jambyl Oblast placed bonds worth 3 billion tenge, carrying a semi-annual coupon of 4.25% per annum with maturity in April 2028. East Kazakhstan Oblast raised the remaining 2.1 billion tenge under similar terms. Municipal bonds are traditionally regarded as a conservative instrument for investors seeking stable fixed income with minimal credit risk. However, the 4.25% annual coupon rate is significantly below the yield on central government MEUКАМ bonds, making them less attractive purely on yield grounds. Investors should factor in the rate differential when constructing a fixed-income portfolio.