Halyk bank (Kazakhstan) links issue of eurobonds with elections in Russia

/IRBIS, Feb.14, 00/ - REUTERS informs, with the reference to the chairman of the board Karim Masimov, that Halyk savings bank of Kazakhstan plans to offer eurobonds in spring of this year, but the final decision will be made after the presidential elections in Russia. "Now we have all prerequisites to go into the market of eurobonds in April- May of this year. At least, we set such task for ourselves", said Masimov - "I can give certain answers only after Russian elections". The chairman said Russia and Kazakhstan were placed in the same zone of risk by institutional investors and elections in Russia on March 26 might have a significant impact on the issue. He did not give the amount of issue for this year. In 1998 the bank planned to launch $100 mln eurobond issue, but later it postponed this project due to Asian and Russian crises. Masimov believes price terms are favorable so far. "Prices for sovereign debts are sharply falling, and if you take a closer look, they came close to that of spring 1998 for Kazakhstani eurobonds. Therefore, there are all prerequisites for the issue", he added. This is one of the biggest banks and was partially privatized. Share of the state decreased down to 50% plus one share in two years. Two portfolio investors have 24.9% (Delta) and (Asia Invest) 16.8% shares of the bank. Remaining shares are among private depositors. Authorized capital of the bank is currently at KZT3.66 bln.