The firm noted that this is the first dim sum bond issuance by a Central Asian sovereign wealth fund.
Under what framework was this bond issued?
According to Squire Patton Boggs, Samruk-Kazyna established a USD 1.5 billion medium-term note (MTN) programme under Rule 144A and Regulation S. This dim sum bond issuance represents the debut drawdown under the programme, comprising CNY 2 billion of notes maturing in 2029 with a 2.15% coupon and CNY 1 billion of notes maturing in 2031 with a 2.30% coupon.
On which exchanges can the notes be listed?
The law firm stated that the programme provides a platform for notes to be admitted to trading on the London Stock Exchange's International Securities Market and listed on the Hong Kong Stock Exchange (HKEX), Kazakhstan Stock Exchange (KASE), and Astana International Exchange (AIX). The notes from this issuance are listed on HKEX and AIX, with settlement handled through the Central Moneymarkets Unit (CMU) of the Hong Kong Monetary Authority.
What will the proceeds be used for?
In an announcement on 16 October, Samruk-Kazyna stated that proceeds will be used to finance the fund's investment projects. The fund described the issuance as a step toward diversifying funding sources and expanding its international investor base.
FAQ
Why are there two different figures for oversubscription?
Samruk-Kazyna's 16 October notice stated demand exceeded the issue volume by more than three times, whereas Squire Patton Boggs' 2 November release cited total orders exceeding CNY 8.4 billion, or approximately 2.8 times. Because the calculation methodologies differ, both statements are presented side by side.
What role did Squire Patton Boggs play in the transaction?
The firm acted as legal counsel to the issuer under English law, US law, Hong Kong law, the laws of the Republic of Kazakhstan, and the regulations of the Astana International Financial Centre (AIFC).
Through which system is the issuance settled?
The transaction is settled through the Central Moneymarkets Unit (CMU) of the Hong Kong Monetary Authority.
Rules related to this news
Which institutions participated in the transaction with Samruk-Kazyna?
According to Samruk-Kazyna's release, participating institutions included Citi, Guotai Junan International, Standard Chartered Bank, Bank of China, CNCBI (China CITIC Bank International), and ICBC (Asia).
Is this news related to China?
Yes. The bonds are denominated in offshore RMB and listed on the Hong Kong Stock Exchange, with several Chinese banks and securities firms participating in the transaction.
Related reading
- Previous article in series: Samruk-Kazyna opens order book for offshore RMB dim sum bonds
- Pricing results: Samruk-Kazyna debut dim sum bonds priced
- More industry and policy updates: Kazakhstan investment and project news
Sources
- Squire Patton Boggs, 2 November: https://www.squirepattonboggs.com/news/squire-patton-boggs-advises-samruk-kazyna-on-establishment-of-mtn-programme/
- Samruk-Kazyna (sk.kz), 16 October: https://sk.kz/press-center/news/79536/
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