KazAgro Raises US$1 Billion in Debt Issue

By Marc Castro

May 20, 2013 05:11 PM EDT

KazAgro, the state holding firm of Kazakhstan, has raised US$1 billion in its initial Eurobond issue. This is part of its overall US$2 billion programme according to an announcement made by the company last Monday.

The bond issue is for ten years and is dollar denominated priced last May 17 with a payout of 4.625%. The firm said that this is the lowest yielding Kazakh issued bond of this nature.

The said issue was oversubscribed with bids received from over 200 investors, totalling a pledge of US$3.3 billion when the books were closed last Frday. The issue is listed in Ireland and Kazakhstan, according to KazAgro, was managed by HSBC Bank Plc and JP Morgan Chase.

KazAgro seeks to invest the proceeds from the issue to projects seeking to increase the efficiency of Kazakhstan's agribusiness industry. The firm reported that 35% of the investors were from Britain while 33% were from the United States. It also delineated its investors to continental Europe at 15%, from local businesses at 13% and others at 4%.

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