Kazakh KazAgro places 600 million euro Eurobond offering
Baku, Azerbaijan, May 19
By Elena Kosolapova - Trend:
Kazakh KazAgro National Management Holding successfully issued a 600 million euro eurobond offering for 5 years term and coupon rate of 3.255 percent in the international bond market, the holding reported on May 19.
This transaction has become the second bond deal by KazAgro in the international capital markets, and the first EUR trade out of Kazakhstan since 2007.
The first Eurobond deal was executed in May 2013, when KazAgro successfully placed its debut Eurobonds in the amount of $ 1 billion for a term of 10 years and coupon rate of 4.625 percent.
Citi, HSBC and The Royal Bank of Scotland acted as Joint Lead Managers and Joint Bookrunners for the offering while Tsesna Capital was offering the securities to investors in the Kazakhstan domestic market.
The final orderbook for the offer amounted 2.7 billion euros with participation of over 240 accounts, most of which were invested in the agricultural sector of Kazakhstan for the first time.
This Eurobond offering has become the first EUR-denominated Eurobond deal out of Kazakhstan since 2007 and in the CIS since February 2014. This issue presented the lowest cost of borrowing among Kazakhstan issuers and one of the lowest coupons among EUR trades out of the CIS.
"The funds from this Eurobond deal will be directed again to the state-approved long-term priority projects under the program for the development of the agriculture sector in Kazakhstan for 2013 - 2020 years "Agribusiness - 2020"," Chairman of the Management Board of KazAgro Dulat Aitzhanov said.
Of the issued Eurobonds, 38 percent was allocated in Germany and Austria, 32 percent in the UK and 23 percent in other Europe.
Kazakh National Management Holding Kazagro implements a state policy on development of agro-industrial complex.
The holding includes JSC Kazagrogarant, JSC Kazagromarketing, JSC Food Contract Corporation, JSC Kazagroproduct, JSC Kazagrofinance, JSC Agrarian Credit Corporation and JSC Fund of Financial Support of Agriculture.