Kazakh state rail firm issues $800 mln eurobond

Jul 4. Reuters. ALMATY

Kazakh state rail firm issues $800 mln eurobondKazakh state railway monopoly Kazakhstan Temir Zholy has successfully issued a 30-year, $800-million eurobond on the London and Kazakhstan stock exchanges, the company said on Wednesday.

The heavily oversubscribed issue bearing an annual coupon of 6.95 percent was launched on July 2 following a roadshow for U.S. and European investors, the company said in a statement.

More than 250 investors submitted bids worth a total of $5.2 billion, it said.

“This issue by Kazakhstan Temir Zholy has the lowest yield among corporate issuers of 30-year securities in the Commonwealth of Independent States,” Temir Zholy said.

“This financing was drawn to implement the investment programme of Kazakhstan Temir Zholy.”

A company official told Reuters the cash from the issue would be used to renew existing rolling-stock and build new railways.

http://www.reuters.com/article/2012/07/04/kazakhstan-railways-eurobond-idUSL6E8I44IN20120704

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