KazMunayGas Completes Eurobond Issuance

KazMunayGas, the largest Oil & Gas company in Kazakhstan, is listing new bonds on both the London stock exchange (LSE) and Kazakhstan stock exchange (KASE).

‘On 7 November 2014 … KazMunayGas… completed a dual tranche US$1.5 billion benchmark eurobond issuance with a final yield of 4.95% for a US$500 million 10.5-year tranche and 6.10% for a US$1 billion 30-year tranche. The Regulation S / Rule 144A 10.5-year senior bond tranche carries a 4.875% coupon rate per annum, with 30-year tranche paying a 6.000% coupon rate per annum,’ reads a note released on Monday.  

In May, Kazakhstan strengthened its ties with Russia and Belarus. The three countries signed a treaty to foster integration, guaranteeing the free movement of goods, services, capital and work force. 

“We are very pleased to have completed this eurobond transaction in the current volatile market conditions. 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,” Ardak Kassymbek, the company's Managing director for economics and finance commented.