Halyk Finance successfully organizes Kazakhstan’s first ever issue of ruble bonds RU000A0JZS34 of KTZ Finance

09.06.17, 17:56
/KASE, June 9, 2017/ – Halyk Finance (Almaty), an organizer and a seller of the subscription to international bonds RU000A0JZS34 of KTZ Finance, issued under a guarantee (surety) of National Company Kazakhstan Temir Zholy (Astana), has provided a press release dated June 9, 2017 to Kazakhstan Stock Exchange (KASE) as follows: quote On June 8, National Company Kazakhstan Temir Zholy (KTZh) successfully placed (through KTZ Finance) its debut 5-year RUB international bond issue with a total nominal value of RUB15 bn (about $264 m) and a dual listing on MOEX and KASE. The initially announced benchmark for the coupon rate was determined 8.85%- 9.15% per annum. The orders were collected simultaneously on MOEX and KASE, and three hours past the collection the total order book exceeded RUB27 bn, which significantly reduced the coupon rate benchmark to 8.75%-9.00% per annum. The final benchmark was set at 8.75% per annum, which corresponds to the yield to maturity at the same level. This unique innovative deal is truly successful, becoming Kazakhstan’s first ever issue of bonds in the Russian market and the CIS’s first ever corporate issue of the foreign issuer in the Russian market. The impressive interest of investors during the collection of orders was the result of trust in KTZ as a high-quality issuer with a strong credit history, as well as the thorough and painstaking work carried out by KTZ and the organizers of the deal, one of which was Halyk Finance. "We are very pleased to note the fact that KTZ once again chooses Halyk Finance as an organizer of their deals, which become breakthrough and unique not only for the company itself, but for the entire domestic securities market." Let me remind you that the debut deal to issue and place KTZ KZT bonds with a maturity of 10 years for a total of KZT50 bn in April 2016, for which Halyk Finance acted as a Single Financial Consultant and Underwriter, was recognized as a winner of a prestigious award The Best Sub-Sovereign Bond in EMEA according to EMEA Finance. In addition, earlier in June 2014, KTZ successfully placed 2 tranches of debut Eurobonds in Swiss francs. This deal, for which Halyk Finance also acted as a joint organizer, was Kazakhstan’s first ever public bond issue in Swiss francs, and KTZ became Kazakhstan’s first ever issuer going Swiss," Chairman of the Management Board of Halyk Finance Arnat Abzhanov said, adding that "the latest deal is not only an excellent continuation of the credit history of the company with a very low-cost financing under the current market conditions, but it also opens new opportunities for all other Kazakhstan issuers by diversifying their funding base and using the Russian market as an alternative and very attractive platform for debt capital raising." Sanzhar Ospanov Financial Counseling and Underwriting of Halyk Finance JSC www.halykfinance.kz Tel .: + 7 (727) 357 31 77 PR of Halyk Bank of Kazakhstan JSC www.halykbank.kz Tel. +7 (727) 259 08 16 unquote [2017-06-09]