KazMunaiGas closes $3 billion deals

KazMunaiGas National Company has successfully closed the deals on placement of 10-year and 30-year Eurobonds raising $3 billion, Tengrinews.kz reports citing the company’s press-service. “The total placement includes $2 billion worth of debut Eurobonds with 30-year tenor and annual yield to maturity of 5.8 percent and $1 billion worth of Eurobonds with 10-year tenor and annual yield of maturity of 4.45 percent,” the company writes. The coupon rates are the lowest among Kazakhstan’s corporate issuers with the similar tenors. The debut issue of 30-year Eurobonds is the largest among non-sovereign issuers of CEEMEA countries (Central and Eastern Europe, the Middle East and Africa). According to the company, the global order book for purchase of KMG Eurobonds made around $14 billion from over 350 investors. Kazakhstan investors purchased Eurobonds worth $264 billion, i.e. 8.8 percent of the total volume. Fitch rated KMG Eurobonds BBB, Standart & Poors assigned them a rating of BBB- and Moody’s of Baa3. The company says that funds raised from the deals will be used for general corporate purposes, including refinancing of old debts.