Central Asia

China’s FX reserves rise for the fourth consecutive month in May, a Chinese securities regulator says the country will start allowing foreign investors to trade commodities futures onshore, and Ford Motor’s onshore financial arm issues RMB-denominated bonds.

In this week’s round-up, the Hong Kong Exchange’s USDCNH futures record their second best trading volume on Wednesday, renminbi deposits in Hong Kong increase by 4.1% in April, and China and Germany agree to co-operate on trade and finance.

Risk appetite propelled CEEMEA into a bullish second quarter with nearly $16bn of bonds printed in Easter week. Saudi Arabia led the charge with a $9bn sukuk, but demand for duration played into the hands of KazMunayGas which raised $1.25bn of 30 year debt.

Two large emerging market corporates were out with multi-tranche deals on Tuesday, Kazakhstan’s state owned oil company and Abu Dhabi sovereign investment fund Mubadala.

KazMunayGas is preparing to bring the first deal from the Caucus region this year and will be hoping the red hot market stays warm enough to drive its funding costs down.

The European Bank for Reconstruction and Development has priced the first non-domestic Kazakh tenge inflation-linked bond, raising the equivalent of $99m on Monday.

Lenders in the $260m syndicated loan for Kaz Minerals have agreed to waive the net debt to Ebitda covenant in the deal for another year as lower copper prices weigh on earnings for the Kazakh mining firm.

Kazakhstan is looking to lure foreign capital to offset the impact of falling commodity prices and low growth. The flotation of Air Astana for up to $1bn may attract investors who have steered clear of the central Asia economy

Kazakhstan

Kazakhstani crude oil company Tengizchevroil (TCO) pulled in pricing 50bp from initial guidance on Wednesday to print its $1bn 2026s only 10bp over the Kazakhstan sovereign, according to a bookrunner on the deal.

Kazakhstani crude oil company Tengizchevroil (TCO) has released price guidance for its $1bn 10 year bond at 300bp over US Treasuries, a level that one analyst called fair.

Lead managers on the bond for Kazakhstani crude oil company Tengizchevroil (TCO) on Tuesday confirmed that the deal would be a $1bn 10 year note.