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This Section is contributed by Kazkommerts Securities
October 1998
In October 1996 Kazakhstan tapped the international capital markets through the issuance of eurobonds. The debut tranche was just USD 200 million and it was well received by international investors. ABN AMRO Hoar Govett acted as a lead manager for this issue. The first tranche eurobonds are due in November 1999; they were placed at 9.25% annual coupon rate. These bonds were acquired by institutional investors from the US (40%), Europe (40%), and Asia (20%). After the Russian financial crisis the yields on these and other Kazak eurobonds have increased significantly. |
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| Private lenders | The debt of the Government of Kazakhstan (and other debts of the private sector guaranteed by the Government) to private lenders was USD 573.5 million as of 1Q98. Of this amount, the majority of the Government’s debt is associated with the holding of sovereign eurobonds. |
| Second issue | In the 3Q97 the Government of Kazakhstan and JP Morgan successfully completed the placement of the second tranche of sovereign eurobonds. The tranche was for USD 350 million and notes are due in 2002. The annual coupon rate is about 8.3%. |
| © Kazkommerts Securities 1998.
Please cite source when quoting. This report has been prepared by Kazkommerts Securities and provided solely for information purposes to recipients only. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. This information does not constitute an offer to buy or sell securities. Kazkommerts Securities or its affiliated persons may be buying, selling or holding long or short positions, acting as investment bankers, be represented on the Board of the issuers in securities mentioned herein. This report is not intended for the use of private investors. Investment in Kazakhstan markets is an extremely risky activity and many persons, physical and legal, may be completely or partially restricted from dealing in the Kazakhstan securities markets. |
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