The decision by Kazakhstan’s sovereign wealth fund, Samruk-Kazyna, to sell 3 billion yuan (US$440 million) in China’s interbank market comes as global investors are looking for safe havens amid geopolitical uncertainties such as the Iran war.
The three-year bond was priced at a “record-low” annual yield of 2.18 per cent, the fund said in a news release issued on Monday, noting that reflected the high level of confidence among Chinese institutional investors.
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Samruk-Kazyna, which managed an estimated US$88 billion in assets at the end of last year, is Kazakhstan’s largest state-owned asset management institution.
“This is an important step in our integration into global capital markets – our first entry into China’s domestic market,” the fund’s chairman, Nurlan Zhakupov, said at the listing ceremony at the Astana International Exchange.
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He said the issuance “marked an important milestone in strengthening the strategic partnership between Kazakhstan and China”.