Largest Kazak oil & gas company completes $1.5B benchmark eurobond issuance

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KazMunaiGas (KMG), Kazakhstan’s largest oil and gas company, completed on Nov. 7 a dual tranche $1.5 billion benchmark eurobond issuance with a final yield of 4.95 percent for a $500 million 10.5-year tranche, and 6.10 percent for a $1 billion 30-year tranche.

“The Regulation S/Rule 144A 10.5-year senior bond tranche carries a 4.875 percent coupon rate per annum, with 30-year tranche paying a 6.000 percent coupon rate per annum,” a message from KMG press service said Nov. 10.

The offering is rated BBB (Fitch), Baa3 (Moody’s) and BBB- (Standard & Poor’s), according to the message.

The Citigroup Global Markets Limited, Credit Suisse Securities (Europe) Limited, Deutsche Bank AG (London) and UBS AG (London) acted as joint bookrunners and joint lead managers.

The Skybridge Invest JSC and Kazkommerts Securities JSC acted as Kazakhstan bookrunners and Kazakhstan lead managers.

This bond offering represents the largest corporate eurobond deal in CIS in 2014. Following roadshow sessions in London, Munich, Boston, New York and Los-Angeles, the KMG received orders from over 300 institutional investors.

“We are very pleased to have completed this eurobond transaction in the current volatile market conditions,” Ardak Kassymbek, the KMG Managing Director for Economics and Finance said, commenting on the bond issuance.

“The bond issue will help us optimize our average cost of funding and debt profile. I would like to thank my colleagues and our advisors and congratulate them on the successful completion of the deal,” Kassymbek added.


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