BI Group, one of Kazakhstan’s largest property developers, is considering a debut eurobond along with local debt sales this year as it seeks to expand business at home and abroad.

“We are considering raising up to $500 million on local and international markets this year,” Aidyn Rakhimbayev, a co-founder and board chairman, said in an interview in the capital, Astana. The timing of any eurobond sale will depend on market conditions, he said.

Kazakh companies from the energy and financial sectors have borrowed on the international debt markets, while the sovereign has investment-grade ratings from all three major agencies. Now BI’s plans point to how private companies in the nation of 20 million people are starting to look at sales of foreign bonds amid a high interest-rate environment at home.

Central Asia’s biggest economy saw accelerated construction growth last year, with the industry posting a nearly 16% increase as prices also jumped, according to the Bureau of National Statistics. New residential property alone grew 5.1% last year to 20 million square meters.

BI Group's Construction Spree

Kazakh developer increased residential building

Source: Cushman & Wakefield

BI Development, the Kazakh unit of the group, has a BB long-term credit score at Fitch Ratings, two steps below investment grade. The company focuses on the construction and sale of modern residential apartments in Kazakhstan’s major urban centers and has established a “strong reputation” as a leading developer, Fitch said in August.

BI Group is also looking at attracting financing via real estate investment trusts and partnership models, Rakhimbayev said.

Still, residential property price growth in the oil producing nation is expected to continue at a more moderate pace due to a number of local legislation changes, according to a January report from Halyk Finance.

BI Group may benefit, though, from its presence on other markets. The company is a leader among the peers from the Middle East and former Soviet republics by size of property put into operation, according to a Feb. 9 report from Cushman & Wakefield, a commercial real estate services firm. It also has projects in Miami and Dubai, as well as in neighboring Uzbekistan and Azerbaijan, according to its website.

“The funds would be used to develop projects and grow our business both internationally and in Kazakhstan,” Rakhimbayev said.