Published: November 27, 2012
Zhaikmunai International raises US$560mn to refinance parent group’s existing debt.
Zhaikmunai International, a subsidiary of Kazakh oil and gas group Zhaikmunai, has raised US$560mn in a eurobond issuance.
The company issued the seven-year paper to fund the parent group’s repurchase of US$347.6mn of a US$450mn eurobond due October 2015.
The new bonds were issued with a yield to maturity of 7.125%, at the bottom of final price guidance of 7.125%-7.25%, itself revised down from initial guidance of 7.25%-7.50%.
In a statement announcing the issuance, Jan-Ru Muller, Zhaikmunai’s CFO, said: “This new bond issue proved a major success for Zhaikmunai. The reaction from investors was very positive and the book was over four times oversubscribed. It corroborates the important progress we have made operationally since we issued our first bond in October 2010… The excellent result of this transaction has allowed us to extend over 80% of our existing liabilities to 2019 and to reduce our existing interest rate of 10.5% down to 7.125% on the US$560mn raised.”
Halyk Finance acted as a joint lead manager on the deal.