Kazakh KazMunayGas company completes deal on Eurobonds worth $3 bln
Kazakhstan, Astana, May 2 / Trend D. Mukhtarov /
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, KMG said today.
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, the statement said.
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, the statement said.
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, the statement said.
Kazatomprom is Kazakhstan's national operator for the export of uranium and its compounds, rare metals, nuclear fuel for power plants, special equipment, technologies and double-use materials.
Sovereign Wealth Fund Samruk-Kazyna joint-stock company has 100 percent of KazMunaiGas's shares.