SkyBridge Invest announces results of KazTransGas Eurobonds offering

20.09.17 17:31
KASE, September 20, 2017/ – SkyBridge Invest (Almaty), the lead manager in Kazakhstan for the planned KazTransGas (Astana) Eurobonds issue, has provided Kazakhstan Stock Exchange (KASE) with a press release on results of the offering of said bonds on September 19, 2017. quote SkyBridge Invest, the lead manager in Kazakhstan, together with Citigroup Global Markets Limited, ING Bank N.V., London Branch, VTB Capital plc, the joint lead managers and joint book-runners, has successfully closed the order book on KazTransGas initial Eurobonds offering. On September 19, 2017 KazTransGas successfully closed the order book on offering of the initial issue of USD-denominated Eurobonds, with a total face value of $750 mln and double listing on the Irish Stock Exchange and Kazakhstan Stock Exchange (KASE). Initially, the approximate yield was announced as coupon rate of 4.70% APR. Investors' orders were collected simultaneously on the ISE and KASE. In the course of the trading the benchmark was reduced to 4.5-4.6%. The resulting yield upon results of the trading made 4.40% APR, the coupon rate was fixed at 4.375%. The uniqueness of this deal is determined by the impressive interest on the part of both Kazakh and foreign investors. The total amount of purchase orders exceeded the proposed volume more than 3 times, exceeding $2.2 bn. The total volume of orders submitted through KASE is a record of the last 2 years exceeding $100 mln. Such significant interest of investors reflects the trust in KazTransGas as a first-class issuer with a high credit rating and stable financial position. The largest investor was the Eurasian Development Bank (EDB). Dmitriy Ladikov-Roev, EDB's managing director for assets and liabilities, commented on the bank's participation in the offering: "We, as a development institute, are pleased to contribute to the growth of long-term investments in Kazakhstan's real sector. It is important to us to take part in a Eurobonds issue offered on KASE, and thus, show support to Kazakhstan's financial market. We hope, the number of investors, investors base and the versatility of financial instruments listed on stock exchanges of EDB-member countries, will continue to grow". Sholpan Ainabaeva, Chairman of Management Board of "SkyBridge Invest", the lead manager of the deal in Kazakhstan, estimated the market's enthusiasm with optimism: "A demand 3 times exceeding the supply is the acknowledgement of KazTransGas's high credit quality and sign of the continuing recovery of Kazakhstan's stock market". Reference: KazTransGas has ratings BBB- from Fitch Ratings, BB from Standard&Poor's, Baa3 from Moody's Investors Services. It 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. KazTransGas's sole shareholder is NC KazMunayGas. SkyBridge Invest is a successful investment company with a substantial track record on Kazakhstan's stock market. SBI renders a wide range of services in the field of asset management, brokerage, financial consultancy and underwriting, corporate financing and holds awards like: "The best consultancy company in emerging capital markets", edition Global Banking and Finance Review Awards 2015, as well as "The best managing company in Kazakhstan in 2012", edition World Finance. SkyBridge Invest is part of the group of companies "SB Capital", a leading investment bank in Kazakhstan, a participant in major projects in Kazakhstan and CIS. Eurasian Development Bank (EDB) is an international financial organization established by Russia and Kazakhstan in January 2006 with purpose of promoting market economy in member countries, their sustainable economic growth and extension of mutual trade and economic relationships. EDB's shareholder capital is USD7 bn. Member-countries of the Bank include Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russian Federation and Tajikistan. unquote [2017-09-20]