/KASE, October 14, 2020/ – National company "KazMunayGaz" (Nur-Sultan),
whose securities are officially listed on Kazakhstan Stock Exchange (KASE), has
provided KASE with the following press release of October 14, 2020:
JSC NC "KazMunayGas" (KMG) reports on the successful completion of the
offering in the United States pursuant to Rule 144A and outside the United
States pursuant to Regulation S of 12.5-year US $750 million Eurobond
October 14th – KMG is pleased to announce the successful completion of its
offering of new Eurobonds which priced on October 6th, when KMG opened a
global investor book for its new benchmark-sized 12.5-year Eurobonds,
successfully pricing the transaction intra-day. Orders from investors in
Kazakhstan were collected through the Kazakhstan Stock Exchange (the "KASE")
simultaneously with the international bookbuilding. The initial price guidance
was set at yields to maturity of around 3.875%, but backed by strong investor
support was later revised to 3.500%, implying a total 37.5bps yield tightening
throughout bookbuilding. Upon the books' closing on the same day, a very robust
global demand represented by an order book over U.S.$ 3 bn at peak allowed KMG
to price the deal at the lowest-ever USD yield for the company – i.e. at 3.5%
for the U.S.$ 750 MM 12.5-year series with the same coupon rate per annum.
The new issue was priced inside the existing KMG yield curve with estimated 12.5
bps negative new issue premium. The final pricing also represents the
lowest-ever USD yield achieved by any CIS issuer for a 10+ year new issue.
The Eurobonds were settled on October 14th. The net proceeds will be used by
KMG to fund the early redemption of its outstanding Eurobonds due 2022 and
The new Eurobonds are rated BBB- (Fitch) / Baa3 (Moody's) and [are/application
has been made for them to be] listed on the London Stock Exchange and the KASE.
J.P. Morgan, MUFG, Halyk Finance and SkyBridge Invest were mandated as joint
lead managers and joint bookrunners. White & Case LLP and Kinstellar acted as
legal advisers to KMG, while Latham & Watkins LLP and Zan Hub LLP acted as
legal advisers to the joint lead managers.
The full press release is available on KASE website –