Kazakhstan Drops 20-Year Dollar Addiction With First Euro Bond
Kazakhstan is joining a raft of emerging-market borrowers rushing to sell bonds in euros as the gap widens between interest rates in Europe and the U.S.
After favoring dollar debt sales over the past two decades, Central Asia’s biggest energy producer is switching currencies as the European Central Bank vows not to tighten borrowing costs until at least next summer. The Finance Ministry began a week-long roadshow on Monday for a benchmark-sized 10-year note, according to a person familiar who asked not to be identified because the information is private.
“Euros make a lot of sense, the ECB will remain dovish in contrast to the Fed,” said Richard Segal, a senior analyst at Manulife Asset management in London.
Citigroup Inc., Societe Generale SA and BCC Invest are organizing investor meetings for the Kazakh sale in Paris, Frankfurt, Amsterdam and London.