KazMunayGas raises a $1 bl syndicated loan

August 3. Interfax-Kazakhstan. Almaty

KazMunayGas raises a $1 bl syndicated loanNational Company KazMunayGas has successfully completed the syndication of a $1 billion term loan facility, the company says in today’s press release.

The loan agreement was signed on July 15, 2011.

The deal was fully underwritten and arranged by the Bank of Tokyo-Mitsubishi UFJ, Ltd., ING Bank N.V., Natixis and The Royal Bank of Scotland plc, the press release says.

“The marketing strategy developed by KMG and underwriters attracted 9 banks in total and resulted in successful transaction viewed as a benchmark for corporate borrowers in Kazakhstan. JSC Citibank Kazakhstan, Sumitomo Mitsui Banking Corporation and UniCredit Bank Austria AG joined the facility during the Senior phase as Mandated Lead Arrangers. General Syndication took place in June with the following banks subsequently joining the transaction: Bank of America Merrill Lynch acted as Lead Arranger, Siemens Bank GmbH, Intesa Sanpaolo S.p.A and Mega International Commercial Bank, London Branch as Arrangers, UBS and Export Import Bank of the Republic of China as Lead Manager,” the press release reads.

According to KazMunayGas, the facility is unsecured, has a term of 5 years and an interest rate of LIBOR +2.10%.

The funds will be used for the general corporate purposes of KMG including repayment of existing debt, the company says.

The facility is KMG’s first syndicated loan facility since 2008, the press release says.

National Company KazMunayGas JSC is a national operator for exploration, production, processing and transportation of hydrocarbons. The company represents the state interests in the oil and gas sector of Kazakhstan. KazMunayGas is wholly owned by Samruk-Kazyna National Welfare Fund.