KazMunayGas lists $2.75bn 5, 10 & 30 year Eurobonds on London Stock Exchange, says in London Stock Exchange press release. Offer is nearly three times oversubscribed, highlighting strong international investor demand.
Joins number of landmark global bond issuances on London’s markets, reinforcing the City’s status as a leading global financial centre.
London Stock Exchange welcomes the listing of the largest corporate bond issuance from the CIS region since 2014. Kazakh oil and gas company, KazMunayGas, placed $2.75 billion Eurobonds in 5, 10 and 30 year tranches in London. The offer secured strong investor demand and was three times oversubscribed, with the combined order books reaching $6.5 billion.
KazMunayGas sold $500 million in 5-year-debt, paying a coupon of 3.875 per cent, $1 billion in 10-year debt, paying a coupon of 4.75 per cent and $1.25 billion in 30-year debt, paying a coupon of 5.75 per cent to help lengthen the country’s debt profile.
KazMunayGas bond listing follows several high profile bond issuances by supranational institutions, municipals and private companies on London Stock Exchange in 2017, cementing its position as a leading global venue for debt fundraising. Together, with the active and fast-growing community of Kazakh companies on its markets London Stock Exchange is ideally suited to support Kazakhstan’s and the wider region’s growth ambitions.
There are 15 Kazakh companies listed on London Stock Exchange, with a combined market capitalisation of $11.6bn.
Since 2004, Kazakh companies have raised over $36bn in debt and $7.2bn in equity on London’s markets.
Over the past 24 months alone, Russian and CIS companies have raised over $10bn in debt and equity listings on London Stock Exchange.
In 2015, the Kazakhstani Government raised $4bn in Eurobond transactions in London.
There are 99 companies from Russia and the CIS region listed in London, with a total market capitalisation of $515bn.
Ayuna Nechaeva, Head of Russia, CIS & Mongolia, Primary Markets, London Stock Exchange:
"London Stock Exchange is proud to welcome KazMunayGas’ landmark listing, a strong statement of international investor interest in building exposure to Kazakhstan’s economy and London’s status as a leading global financial centre.
With 15 Kazakh companies, over $36 billion raised in equity and debt capital since 2004 by Kazakh businesses and the first index-linked Eurobond in Kazakh tenge from EBRD listed on our markets. London offers access to the deepest and most liquid pool of international investor capital, so is well placed to provide an additional channel of funding for Kazakhstan’s economic development.”