OREANDA-NEWS. On May 17, 2007 JSC Halyk Bank Kazakhstan (“the Bank”) announced the results of the following transactions, reported the press-centre of JSC Halyk Bank Kazakhstan:
Eurobond issue. On 3 May 2007 the Bank’s special purpose vehicle subsidiary, HSBK (Europe) B.V. successfully placed 10-year Eurobonds for the principal amount of US$ 700 mln. fully guaranteed by the Bank. The placement followed an intensive 4-day roadshow in New York, Boston, Los Angeles, London, Frankfurt and Geneva. Due to the significant interest in the paper it finally priced at MS+220 which was at the tighter end of the initial guidance of MS220-230. The deal size of US$ 700 mln. was at the upper end of initial guidance of US$500-700 mln., and is the largest senior Eurobond deal for the Bank.
The joint lead managers were Citigroup and Dresdner Kleinwort. The benchmark deal was priced at 99,168% and bears a yield for investors of 7,369% paying a beneficial coupon of 7,250%. Despite very tight pricing the transaction generated strong interest from investors attracting approximately US$ 1,500 mln. in demand from over 100 investors, with a large participation of US institutional accounts. Geographical distribution includes the US – over 40%, Europe and UK – over 45% and Asia – over 10%.Good distribution was also achieved by investor type with solid participation of asset managers. The notes were assigned the following ratings: Baa2 (Moody's Investors Service), BB+ (Standard&Poor's) and BB+ (Fitch Ratings).
Syndicated loan. On 18 April 2007 года HSBK (Europe) B.V. entered into a syndicated loan facility agreement for the principal amount of US$ 400 mln. with a 2-year tenor with extension option for one year fully guaranteed by the Bank. The benchmark loan bears a margin of 30 bps over LIBOR for the first 2 years with a step-up margin of 70 bps for the third year.
Due to the strong interest from banks and oversubscription in the order book, the initial guidance of US$ 300 mln. was increased to US$ 400 mln. despite a relatively tight pricing. The funds will be used for general corporate purposes of the Bank, including trade finance operations. The lead arrangers and bookrunners of the deal were Citibank N.A., London and Unicredit Group. 26 foreign banks and financial institutions, including the lead arrangers, from 13 countries participated in the syndication.