Kazakhstan’s largest bank issues $750M Eurobond

May 05. Central Asia Newswire

Kazakhstan’s largest bank issues $750M EurobondKazakhstan’s largest lender, Kazkommertsbank, announced Thursday it is launching a $750 million Eurobond issue after postponing the move for six months.

The bank, which trades in London and Kazakhstan, said the Eurobond is part of a program to issue debt up to $2 billion that has been authorized by U.K. financial authorities.

The bonds will have a maturity of up to seven years.

News of the issue was announced on the website of the Kazakhstan Stock Exchange kase.kz by one of the organizers of the transaction and a subsidiary of the lender Kazkommerts Securities, the Reuters news agency reported Thursday.

Only last week a top official at Kazkommertsbank said the lender was still evaluating pricing conditions and gave no clue to the bank’s intentions.

“As we have said in the past, for us the priority is the price. We cannot rule out a new Eurobond issue this year,” Reuters cited managing director Sergey Mokroussov as saying in Almaty on March 31.

The lender put launch plans on hold in early November owing to what it said were unfavorable market conditions only days after announcing the debt issuance plans.

The country’s largest lender expects a rise in 2011 net earnings of five to 10 percent.