The board of Kazakhstan's sovereign wealth fund Samruk-Kazyna has approved the issuance of onshore renminbi bonds to diversify its funding channels, according to a press release from the issuer.
A timeline for the deal was not disclosed.
A source aware of the matter said banks had been selected for the Panda bond transaction, without disclosing further details.
A number of Central Asian issuers are known to be eyeing onshore and offshore renminbi bonds to take advantage of favourable rates and the region's tighter relationship with China.
In late August, the Development Bank of Kazakhstan raised Rmb2bn (US$279m) from 3.35% three-year Dim Sum bonds.
Kazakh state-owned oil company KazMunayGas earlier this year said it was exploring both Panda and Dim Sum bonds to access cheaper funding.