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Thursday 8 June 2017

Halyk Finance Issues the 1st ever Russian Ruble Denominated Bond Out of Kazakhstan


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ALMATY (Halyk Bank press service) — On June 8th, JSC National Company Kazakhstan Temir Zholy (KTZ) has placed (via its SPV — KTZ Finance) its debut RUR 15 bln (c. $264 mln) 5-year international bond issue with a dual listing on the Moscow Exchange (the MOEX) and on the Kazakhstan Stock Exchange (the KASE).

The initial price guidance was set at the coupon level of 8.85%-9.15% p.a. Investors submitted their orders simultaneously on both the MOEX and the KASE, and the total order book had exceeded RUR 27 bln (c. $474 mln) after just 3 hours of book-building, which allowed to tighten the price guidance down to 8.75%-9.00% PA. The final coupon rate was eventually set at the lowest price guidance level i.e. at just 8.75% PA

This unique, innovative and truly successful transaction marks the 1st ever bond issue on the Russian market out of Kazakhstan and the 1st ever corporate bond issue by a foreign issuer on the Russian market out of the whole CIS region.

In April 2016 KTZ’s KZT 50 bln 10-year bond issuance — in which Halyk Finance acted as the Sole Financial Advisor and Underwriter— had been named The Best Sub-Sovereign Bond in EMEA by EMEA Finance, a international finance magazine. Yet another example is KTZ’s dual-tranche Eurobond denominated in Swiss francs, which was effectively placed back in June 2014 when Halyk Finance had acted as the Joint Lead Manager & Joint Bookrunner. That deal had become the first-ever public CHF issue out of Kazakhstan and their client had become the first Kazakh issuer in the country’s history to publicly tap the Swiss market.

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