KazMunayGas lists US$2.75 billion of Eurobonds on LSE

Dan Barnes

London Stock Exchange (LSE) has seen its largest issuance of corporate bonds from the CIS region since 2014. Kazakh oil and gas company, KazMunayGas, placed US$2.75 billion Eurobonds in 5, 10 and 30 year tranches in London. The LSE reports the offer secured strong investor demand and was three times oversubscribed, with the combined order books reaching US$6.5 billion.

KazMunayGas sold US$500 million in five-year-debt, paying a coupon of 3.875 per cent, US$1 billion in 10-year debt, paying a coupon of 4.75 per cent and US$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 notable bond issuances by supranational institutions, municipals and private companies on London Stock Exchange in 2017. Over the past 24 months, Russian and CIS companies have raised over US$10 billion in debt and equity listings on London Stock Exchange while in 2015, the Kazakhstani Government raised US$4 billion in Eurobond transactions in London.