KTZh issued eurobonds with total amount of $800 m. (broadened version)

/INTERFAX-KAZAKHSTAN, Astana, May 10, 06/ - The National railway company Kazakhstan temir zholy (KTZh) maintained the debut issue of its eurobonds with total amount of $800 m. "Offering date - April 28 of 2006. Pricing was held on April 28 (...) and, since from May 2 our bonds have been already quoted and traded on Kazakhstan stock exchange," - managing director of KTZh on finance Zhannat Satubaldina informed on Wednesday at press conference in Astana. According to her information, given securities were offered by two trenches: in volume of $450 m. with circulation term 5 years at interest rate 6.5% APR and in volume of $350 m. with circulation term 10 years at interest rate 7.0%. Zh. Satubaldina explained some lead-time with publishing of information about issue of eurobonds that the previous days were days off, which were at the end of April and the beginning of May. The managing director of KTZh stressed, that "for the first time among issuers of the republic rating of our securities issues from rating agency Moody's had been assigned with upper rating than sovereign rating." As it is known, Standard & Poor's assigned to the bonds issue rating "ВВ+", Moody's and Fitch - expected rating "Baa1" and "ВВВ", correspondingly. According to her data, the eurobonds issue was produced by Kazakhstan Temir Zholy Finance B.V. (Netherlands) under guarantee of KTZh and its daughter companies - Kazzheldortrans and Lokomotiv. ABN Amro Bank NV and Citigroup Global Market Ltd were organizers of the offering. The chairman of KTZh noted, "the bonds passed listing on Singapore stock exchange and were offered according to the rules Regulation S, in compliance with which the offering took place among investors of Europe and Asia." She informed, that last year before eurobonds issue, KTZh purchased so- called bridge-borrowings at $200 m., which were purposed for buying of 4.5 th. of freight stocks, and in March of the previous years the National company maintained such borrowings at $100 m. "Saying in other words, $300 m. will be matured at the cost of eurobonds," - stressed Zh. Satubaldina. According to her words, the rest of $500 m. will be directed at financing of the investments projects of KTZh: increasing of admitted capacity, expanding and constructing of new rail ways, renewing of rolling-stocks, electrification of railway sectors. [2006-05-10]