Kazakhstan’s KazMunaiGas Places $2.75B Eurobonds

KazMunaiGas Close To IPO Move As It Trims Debt Pile

The Kazakh National Oil and Gas Company KazMunaiGas (KMG) successfully placed 5, 10 and 30-year Eurobond issuances with a total volume of $2.75 billion, the company said in a message April 20.

The placement was completed under the $10.5 billion Global Medium Term Notes Program, established by KMG and its finance subsidiary, KazMunaiGaz Finance Sub BV.

The Eurobonds were issued in three series – comprising $500 million 3.875 percent notes due 2022; $1 billion 4.75 percent notes due 2027; and $1.25 billion 5.75 percent notes due 2047.

The company noted that the transaction was accompanied by significant demand from international investors, with orders exceeding $6.5 billion, which allowed KMG to reach the target volume of the issuance at attractive price levels.

“The issuance parameters set new yield benchmarks for KMG and other corporate issuers in Kazakhstan, namely, achieving annual yields of 3.95 percent for Eurobonds in a principal amount of $500 million with a 5-year maturity, 4.875 percent for Eurobonds in a principal amount of $1 billion with a 10-year maturity and 5.875 percent for Eurobonds in a principal amount of $1.25 billion with a 30-year maturity,” KMG said.

This transaction is the largest corporate issuance of Eurobonds from the CIS region since 2014.

About KazMunaiGas

The Company exercises centralized management of the State shareholding in gas-and-oil enterprises and guides their production, commercial, financial and investment activities. Besides, the activity of the Company’s head office is focused on the following directions:
– exploration and oil production on new sites and fields;
– marketing of oil and oil products on the domestic and international markets;
– investment activity in Kazakhstan and, in future, abroad;
– attraction of credit resources to fund own investment programs and capital investments in subsidiaries and affiliates.

KMG is a 100 percent government-owned national oil company with stakes in essentially all of Kazakhstan’s oil-related assets and priority access to new assets.