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Kazakh state firm KazAgro to issue Eurobond of up to 600 mln euros
May 12, 2014 / 6:21 AM / in 4 years

Kazakh state firm KazAgro to issue Eurobond of up to 600 mln euros

ALMATY, May 12 (Reuters) - Kazakhstan’s state holding company KazAgro will issue euro-denominated Eurobond of up to 600 million euros and will start drumming up investor interest for the debt offer at a roadshow which starts on Monday.

The planned issue is part of a $2 billion borrowing programme for up to 15 years, which was approved by KazAgro’s board of directors in April last year.

“The roadshow starts today, and the first of a series of meetings with investors in European cities will take place in Frankfurt,” Darkhan Baishokan, senior manager at KazAgro’s treasury, told Reuters by telephone from the company’s office in the capital Astana.

KazAgro said in a statement that the forthcoming issue would be lead managed by HSBC Bank Plc, The Royal Bank of Scotland Plc and Citigroup Global Markets Ltd. Tsesna Capital will be the Kazakh underwriter of the issue.

Last May, KazAgro successfully raised $1 billion in a debut Eurobond issue as part of its $2 billion borrowing programme.

KazAgro plans to use the funds to stabilise Kazakhstan’s grain market, support farmers and refinance more expensive debt issued earlier. The firm’s corporate structure includes state grain trader the Food Contract Corporation, which has often used grain interventions to stabilise bread prices in the nation of 17 million.

Last week Fitch Ratings affirmed KazAgro’s long-term foreign currency rating at ‘BBB’ and its long-term local currency rating of ‘BBB+', and removed them from Rating Watch Negative. (Reporting by Dmitry Solovyov; Editing by Shri Navaratnam)

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