Development bank of Kazakhstan will issue eurobonds on September 27- sources

/REUTERS, London, September 27, 02/ - On Friday Development bank of Kazakhstan will start floatation of five-year eurobonds to the amount of USD100m or Euro with the yield of from 7.25 to 7.5% APR, informed representatives of London banking sphere on Thursday. The floatation will be begun earlier than it had been planned and this may mean the increased interest towards securities of the state bank. Last week the bank's acting director spoke about intention to keep from the issue until debt instruments of Kazakhstan in the amount of $350m are redeemed on October 2. Intention to resell the securities to Kazakhstan financial institutions may be one of the reasons of purchasing the bank's eurobonds by international investors. Pension funds of Kazakhstan, which must have in their portfolios Kazakh debt instruments, will not have a lack of financial resources the next week. "This is one of those... issues, which will be in the possession of Kazakh pension system as the result, - says one of London investors. - Development bank hopes that the securities will be purchased by several large international investors, and that afterwards domestic purchasers will also be chasing them". Agencies Standard & Poor's and Fitch Ratings have assigned "ВВ" and "ВВ- " correspondingly to Development bank. Ratings of Kazakhstan in the opinion of S&P and Fitch are "ВВ", in the opinion of Moody's Investors Service - "Baa3". [2002-09-27]