Kazakhstan planning 10-yr, 30-yr USD notes - source
MOSCOW. Oct 6 (Interfax) - Kazakhstan plans to place two tranches of dollar-denominated Eurobonds, one maturing in 10 years and the other in 30, on Monday, a banking sector source told Interfax.
Yield guidance for the ten-year notes is around 175 basis points, and for the 30-year notes - 230 bps against mid-market swaps.
Citi, HSBC and J.P. Morgan are organizing the placement.
The issue volume has not yet been decides, but it will be benchmark-sized.
The Financial Times said these would be the first sovereign bonds to be placed according to new International Capital Market Association (ICMA) rules, drafted in the summer in response to the Argentine crisis and which make it harder for so-called 'hold-out' investors to pursue a country for full payment on debt on which it defaulted in the past.
"Inclusion of the new clauses is voluntary, and there was concern that governments might prove resistant to using them. Kazakhstan's decision to make the changes in its first return to the international bond market since 2000 is regarded as particularly interesting because the country has adopted all of the recommended alterations, including the option of binding investors to a single vote across all bonds, and a narrower definition of the controversial pari passu clause used by holdout investors to claim full repayment," the FT said.
