Kazakhstan is preparing to issue yuan bonds worth $2 billion to strengthen ties with China

Kazakhstan will place yuan-denominated bonds worth up to $2 billion this year to finance joint projects with China and strengthen trade and investment ties, Deputy Prime Minister Serik Zhumangarin said.

According to him, funds are needed for new plants, from corn processing to metallurgy and energy, and borrowing in yuan will be cheaper than alternatives.

State-owned companies in Kazakhstan are already actively issuing debt securities in Chinese currency. The authorities expect that the transition to the yuan will confirm the country's reputation as a reliable borrower.