Kazkommertsbank could issue 5-year eurobonds in 2001

/IRBIS, July 16, 01/ - According to REUTERS, the largest private bank of Kazakhstan, Kazkommertsbank plans to issue five-year eurobonds for approximately $150-200m. The bank's representative noted that the market is too volatile so no exact date was given. The bank will probably float bonds till end of 2001. The current bank's need is more longer money and five-year eurobonds meet such requirement. In May 2001, Kazkommertsbank redeemed three-year eurobonds for $100m. In last year, the bank postponed second emission of eurobonds due to unfavorable financial market conditions. The banks' representative also gave comments on probable merger between Kazkommertsbank and Halyk Bank. He considered that potential investors would positively appraise the move. The managing director of the bank noted "...it will create more confidence of foreign investors - to see the large bank more developed, and diversified." Besides Kazkommertsbank, there is Kazakhstan investors consortium to bid for Halyk Bank. The consortium unites two banks (CenterCredit and Temirbank) and several companies. In case of eurobonds floatation, Kazkommertsbank sees acceptable level of yield at 8.67%. The level fixed for five-year eurobonds (%150m) of KazTransOil, national pipeline operator. The conditions and emission parameter will be close to those set for KazTransOil. The raised funds will be directed to middle-scale business development as large-scale business experiences excessive liquidity. At the same time, the bank does not rush to go to the international markets as the need is not critical. In the bank's opinion, the domestic funds including capital amnesty money will be sufficient.