Offering of euronotes of the fourth issue was the most important event in April - National Bank of Kazakhstan
/IRBIS, May 12, 00/ - In published press-release of the National Bank the offering of euronotes of the fourth issue (XS0111078183, May 11, 00 - May 11, 07, $350 mln, coupon 11.125% APR, discount 98.347%, S&P - "B+", IBCA - "BB-") by the government on April 17 of current year on international market was named "the most important event in April".
The National bank gave quite interesting offering data.
In particular, it is said that "restructuring of domestic currency debt of the Ministry of finance was carried out with unqualified success". It is AVMEKAM (KZ55L0804A42, Apr.12, 99 - Apr.08, 04, $244.1 mln, coupon 6.14% APR), that were exchanged completely to new euronotes, as it is implied from the information of the National Bank. Due to this demand 62% of euronotes were placed.
The National Bank also informs that "the yield of bonds practically equaled 491 basis points in the mid of Friday, though earlier it was assumed to be at 11.475% or 500 basis points over the U.S. T-bills".
Opinions of the experts, regarding the new Kazakhstani euroloan, published by the National Bank are also interesting (following are the quotes): - placement of previously suspended issue was a confirmation of Kazakhstan's unique position on international bond market;
- indispensable advantage of Kazakhstan are: high oil prices, macroeconomic and budgetary stability, as well as expectations of an increase in credit ratings;
- Kazakhstan has opened again a new market of the countries with transfer economies: it is the first state that entered international capital market after the time when this market was unstable (some transactions were postponed - Qatar, Philippines, Costa-Rica etc.);
- the most lengthy issue of international bonds of Kazakhstan has successfully stretched the graph of sovereign debt in dollars and opened the way to local banks and corporations to international financial markets;
- tough prices were set on eurobonds, along with the highest prices the most foreign investors are willing to pay for the securities of such grade.