/IRBIS, March 27, 03/ - Today Kazkommerts Securities OJSC (Almaty) presented
to IRBIS agency for publication the Trade recommendations on bonds of
KazTransOil CJSC: internal securities of the first issue (KZ73LAONAA35; KASE's
official "А" listing category, KZTOb; $100; $30.0 m; October 23, 00 - October
23, 03; semi-annual coupon 9.0% APR) and euronotes of the first issue
(XS0132391938, KASE's official "А" listing category; KZTOe1; $150.0 m; July 6,
01 - July 6, 06; semi-annual coupon 8.5% APR) of KazTransOil CJSC (Astana).
The recommendations are dated March 25 of 2003.
Kazkommerts Securities OJSC notes that the bonds of KazTransOil CJSC
(hereinafter - KTO) are less profitable in comparison with other issuers'
securities, but are rather liquid. It's linked with the act that KTO is one of
the first among Kazakhstan corporate issuers, who issued their eurobonds at
foreign markets. They even used to be the so-called "benchmark" for the
country's corporate sector. The rather low yield of eurobonds has been caused
by large investors' demand at domestic and foreign markets. Foreign investors
prefer more to keep eurobonds of oil sector in portfolios in accordance with
the confident growth of prices for this raw stuff for last 3 years. Moreover,
Kazakhstan is examined by the western world as potential and strategic partner
on oil supplies. All these factors cause large demand for euronotes of KTO from
outside of western investors.
Major priority for domestic investors, Kazkommerts Securities OJSC writes, is
the fact that KTO is a part of the holding NC KazMunaiGas CJSC (Astana), which
was founded last year and which is the largest national company in Kazakhstan.
Despite this status of the company, Kazkommerts Securities OJSC believes
internal bonds of KTO are undervalued by the market and have a rather big
potential of prices growth by 5% APR to the level of yield. Moreover, in the
opinion of analysts of Kazkommerts Securities OJSC yield curve of KTO's bonds
seems to be incorrect. Yield to redemption of internal and external bonds has
almost no differs (7.20% APR on internal and 7.10% APR on external
correspondingly), and term till redemption differs by almost 3 years. "All
these grounds give us reasons for confidence in growth of prices for this
company's bonds, especially internal loan. Foreign loan is less attractive in
comparison with other eurobonds of Kazakhstan corporate sector ", - specialists
of Kazkommerts Securities OJSC write. As the whole their recommendations come
to idea that it's necessary at present to buy KZTOb and keep KZTOe1.
Original version of the Trade recommendations on bonds of KazTransOil CJSC,
which comprises reference data, schedule and information concerning the
issuer's activity, was published today in the KASE's web-site in
http://www.kase.kz/emitters/rt_kkb/kzto_rk.pdf.
[2003-03-27]