SkyBridge Invest announces successful placement of KazTransGas Eurobonds at face value of USD750.0 mln

KASE, September 21, 2017/ – SkyBridge Invest (Almaty), the lead manager in Kazakhstan for KazTransGas (Astana) Eurobonds issue, has provided Kazakhstan Stock Exchange (KASE) with the following press release: quote On September 19, 2017 KazTransGas successfully sold USD-denominated Eurobonds with a 10-year maturity and a total face value of $750 mln, listed on the Irish Stock Exchange and Kazakhstan Stock Exchange (KASE). The deal was a long-awaited debut of KazTransGas on both the Kazakh and international capital markets. Investors showed great interest in this offering; the global order book exceeded the supply several times; the maximum amount of orders reached USD3.4 bn. Also, the offering provoked great interest with Kazakh investors, who submitted orders for purchase of Eurobonds in the amount of over USD100 mln during trading on KASE. In the course of the transaction the YTM was reduced from the initial 4.7% to the range of 4.5-4.6%, and afterwards to the historical minimum of 4.4%, which became the resulting offering rate. For comparison, in March of this year OJSC Gazprom sold 10-year USD-denominated Eurobonds, with a total face value of $750 mln at a yield rate of 4.95%, which by 55 bps (basis points) exceeds the rate on KazTransGas's Eurobonds. On the whole, it can be said that KazTransGas sold its Eurobonds virtually within the yield curve of its parent company NC KazMunayGas that witnesses of an ideal timing for offering of debt obligations under favorable terms on the international capital market. This issue became the second successful Eurobonds offering from Kazakhstan in 2017. We remind you that earlier NC KazMunayGas carried out a successful offering in April of this year. Citigroup Global Markets Limited, ING Bank N.V., London Branch, VTB Capital plc, acted as joint lead managers and joint book-runners; SkyBridge Invest was the lead manager in Kazakhstan on KASE. The company intends to spend the raised funds on settling bridge-financing and on general corporate purposes. KazTransGas is a major gas-energy and gas-transportation company in Kazakhstan representing government interests locally, and abroad. The company operates the centralized infrastructure of commodity gas transportation over trunk pipelines and gas distribution networks, facilitates the international transit and sells gas in the country and abroad, develops, finances, builds and operates pipelines and gas storage facilities. unquote [2017-09-21]