Having secured entree to Europe's corporate-bond and loan markets, over the last two years the leading Kazakh banks have skipped the time-consuming structured route. But that doesn't preclude the occasional trip, as evidenced by news that the country's largest commercial bank, Kazkommertsbank, is coming to market with a $300 million bond backed by diversified payment rights. What's more, a peer, rumored to be Bank TuranAlem, is apparently following suit within the next several months.

In the case of Kazkommertsbank, monoline insurer appetite and the bank's desire to diversify funding and stretch out its debt profile have created the right economics for a DPR transaction, according to sources. But the jury is still out on whether those, or other, factors can build a more lasting marketplace of Kazakh DPR deals.

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