Kazakhtelecom plans to issue bonds in 2001

/IRBIS, Dec.19, 00/ - REUTERS informs, with the reference to the president of the biggest communication company of Kazakhstan - Kazakhtelecom, Aben Bektasov, that the company plans to issue bonds on domestic market in 2001. However, no exact figures on the issue and purposes of the issue were not given. He said that it should be approved by the bank shareholders on December 22 meeting. He says that the company is trying to diversify its financial liabilities and the bonds issue will allow it to get access to more cheap financing, with the pension funds being the major buyers whose total assets exceeded $740 mln as of December 1. It was said that bond interest is comparable to that of bank lending rates, and it is more beneficial to borrow on this market. The agency notes that several Kazakhstani companies and banks have already offered bonds at 11-12% APR on average. The company president said that his company was continuing talks with the European bank for reconstruction and development (EBRD) on his possible participation in the company's authorized capital. It was said that the bank suggested the country to buy 15% of the company shares from investors and 15% from the state for $70 mln. It is possible that the EBRD loan can be converted into the company common shares, which then will circulate at one of the stock exchanges. Mr. Bektasov said the company was going to be profitable this year, but he did give any figures. As the Kazakhstan Stock Exchange informs, last year Kazakhtelecom's net loss equaled KZT1.3 bln. Previous two years the company was not profitable, is said. As a service company we grow along with the economy and have encouraging results, he said. The government of Kazakhstan is said to be the major shareholder of Kazakhtelecom, owning 50% stake, the second shareholder - the company affiliated with the Kazkommertsbank, that owns 30% stake, and the rest 10% of common and 10% of preferred shares are in free circulation on the stock market, is said.