Kazakhstan's Samruk-Kazyna places five-year debut Eurobonds

Kazakhstan Materials 25 October 2021 11:49 (UTC +04:00)
Kazakhstan's Samruk-Kazyna places five-year debut Eurobonds

BAKU, Azerbaijan, Oct. 25


Samruk-Kazyna JSC has successfully placed a five-year debut issue of Eurobonds in the amount of $500 million with a coupon of two percent per annum, Trend reports with reference to the JSC.

As a result, the lowest coupon rate and a significantly narrow spread to sovereign Eurobonds among the US dollar-denominated issues from the CIS countries were achieved.

The pricing of the issue followed a roadshow with the participation of international investors held by the Samruk-Kazyna team in the format of video conferences held on October 18-20.

During the book-building, the total demand for the bonds exceeded the initial supply by almost three times, which made it possible to reduce the final range for the deal to 2.3 percent +/-5 basis points (WPIR), and soon close the deal with profitability of 2.25 percent (reoffer yield).

The final order book has included many of the global leading investors, including funds and asset managers from the US, Europe and the UK. More than 70 international investors took part in the placement.

In order to support and develop the local bond market and preserve the yield on Eurobonds within the country, priority in allocations was given to investors in Kazakhstan who took part in the placement through the Kazakhstan stock exchanges - KASE and AIX.

The issue is also expected to be listed on the LSE. The deal was arranged by international banks - Citi, MUFG, UBS and VTB Capital, acting as joint lead managers and bookrunners, together with Kazakh managers - First Heartland Securities JSC and Freedom Finance JSC.