Kyrgyzstan plans to debut a yuan-denominated bond in 2027 as the nation continues expanding its banking system and regional transport hub status. According to National Bank Chairman Almaz Baketaev, the government raised $700 million with its first eurobond sale in 2025 and is ready to tap new international markets. "We tried the western market, and now it is probably time to look east," Baketaev said in Bishkek. A bond in Chinese currency would likely be cheaper. The government is working with adviser Oppenheimer & Co. Inc. on a deal for the Hong Kong or Shanghai exchange.
Kyrgyzstan recorded 11% growth last year and its GDP has nearly tripled in dollar terms since 2020, with expectations to almost double by 2030. What sets the nation apart is growth fueled by expanding trade, construction, higher government spending, and remittances rather than a commodities boom. Inflation remains high at 12%, prompting the central bank to tighten policy.
The banking industry is booming, with assets rising 50% last year to $14 billion from $9.4 billion. The government used debut bond proceeds to capitalize Eldik Bank OJSC, the largest lender. As a service-oriented economy with trade and logistics at its core, Kyrgyzstan intends to strengthen its role as a transit hub along a modern Silk Road corridor, including the China-Kyrgyzstan-Uzbekistan railway project.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing