Almaty, Kazakhstan –April 14, 2011 Kazakhstan Kagazy JSC (hereinafter referred to as the “Group” or “Kagazy”) informs that restructuring of all its 4 bond issues has been fully completed.
The Bond restructuring represents a land mark in the history of the Kazakh financial system, is the first such restructuring of a non financial institution and has been achieved without any external financial support.
Total amount of restructured bonds is KZT 15 212 mln. (official exchange rate as of date of this release is 145.62 KZT per US$) that makes 44% of total financial liabilities of the group. A summary of the revised terms is shown below:
|
|
KZT million
|
USD thousand
|
Old
Maturity
|
New Maturity
|
Old Coupon
|
New
Nominal (*)
Coupon
|
|
First Issue (KZ2CKY05B448)
|
4,000
|
27,137
|
2010
|
2015 to 2018
|
10.1%
|
6%
|
|
Second Issue (KZPC1Y05C020)
|
3,500
|
23,745
|
2011
|
2026
|
CPI + 1.5% capped at 12%
|
13%
|
|
Third Issue (KZPC2Y07C024)
|
3,500
|
23,745
|
2013
|
2028
|
CPI + 1.5% capped at 12%
|
13%
|
|
Fourth Issue (KZ2C0Y05D117)
|
12,000
|
81,411
|
2013
|
2028
|
12
|
13%
|
The Group’s Second Third and Fourth Issues were readmitted to trading on the Kazakhstan Stock Exchange (“KASE”) on April 1, 2011. The First Issue ceased being a bond when it matured in 2010, and is no longer a tradable security and has become a series of contractual financial obligations with each of the previous First Issue bond holders.
The restructuring of the bonds is another yet an evidence of the support that the Government of the Republic of Kazakhstan provides to the real sector of the economy.
Taissiya Kogutyuk, Director General: “We are glad to inform that we achieved another yet historical achievement that the Group and its partners can be proud of. This success confirms once again that the Group has employed the right strategy. I would like to thank all our bondholders who have trusted in Kazakhstan Kagazy and have given their consent. The success of this transaction, where institutional investors, professional advisors, regulator and auditors were involved in, can also be measured by an experience that Kazakhstan business community has gained after it. During the restructuring process significant amendments have been introduced into legal, regulatory and general corporate practice of the country.”
The group would like to express its gratitude to the Association of Financiers for the support provided by the Association during the bonds restructuring process and for the platform for negotiations with bondholders that in its turn provided transparency for restructuring process. The group expresses its gratitude to its external advisors as well – Unicorn IFC and SP Angel companies - for their contribution to the success of the transaction.
For information:
Amendments and supplements to the prospectus have been registered with Financial Supervisory Agency.
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For more information, please visit www.kazakhstankagazy.com or contact:
