National Company KazMunaiGas (Kazakhstan) successfully offered two issues of bonds to the total amount of $3.0 bn

May 2. KASE

National Company KazMunaiGas (Kazakhstan) successfully offered two issues of bonds to the total amount of $3.0 bnNational Company KazMunaiGas (Astana), bonds of which are officially listed on Kazakhstan Stock Exchange (KASE), provided to KASE the following press release of May 2, 2013:

JSC «National Company «KazMunayGas» (KMG) announces a successful completion of the placement of 10-year and 30-year Eurobond issues in the total amount of $3 billion under its existing Global Medium Term Note Programme of up to $10.5 billion. The size of the global order book for the purchase of the company’s Eurobonds reached $14 billion. Orders were received from more than 350 investors, with investors from Kazakhstan acquiring Eurobonds in the amount of $265 million or 8.8% of the total amount.

Out of the total amount, $2 billion is KMG’s debut Eurobonds with a 30-year tenor and annual yield to maturity of 5.8%; $1 billion issue is Eurobonds with 10-year tenor and annual yield to maturity of 4.45%. Terms of the issues are only indicative because the coupon rates are the lowest among all corporate issuers from Kazakhstan with the similar tenors (4.4% per annum for a 10-year issue and 5.75% per annum for a 30-year issue). Moreover, the new 30-year Eurobond issue is the largest in terms of size among the non-sovereign issuers from CEEMEA.

Eurobonds were assigned with ratings of BBB (Fitch) / BBB- (Standart&Poors) / Baa3 (Moody’s).

Proceeds from the issues will be used for general corporate purposes, including the repayment of the existing loans. These issues set new price parameters in the Kazakhstan market for corporate issuers, which shows the investors willingness to work with Kazakhstan issuers and provides evidence for the fact that the KMG management earned respect and trust from the international financial community.

Bank of America Merrill Lynch, Barclays, and JSC «Halyk Finance» acted as the Joint Lead Managers of the issues, while Bank of America Merrill Lynch and Barclays acted as international bookrunners, and JSC «Halyk Finance» acted as Kazakhstan bookrunner. JSC «Visor Capital» acted as Kazakhstan Lead Manager.