Central Asia

Kazakhstan’s KazTransGas has made its debut in the bond markets, raising $750m of 10 year money close to where its state-run owner KazMunaiGas trades.

Kazakhstan’s KazTransGas has opened books on a debut 10 year dollar benchmark trade with initial price thoughts that leads reckon is around 30bp back of its similarly rated state-run owner, KazMunayGas.

KazMunayGas Kashagan (KMGK), one of the owners of the Kashagan oil field in Kazakhstan, has increased a five year secured oil prepayment loan facility to $2bn, to fund repayments to buyers under its production sharing agreement.

KazTransGas, the largest gas supply company in Kazakhstan, has picked banks for a debut 10 year dollar benchmark after Standard & Poor’s revised the country’s outlook to stable on Friday.

Emerging market bonds remain set for a busy September as weak US data pushed dulled expectations of Federal Reserve rate hikes, outweighing escalating tensions between the US and Korea, and the Kenyan Supreme Court's decision to annul the result of the August 8 election.

With a GDP per capita of just $796, and foreign exchange reserves that cover just 9% of debt obligations, the Republic of Tajikistan cannot claim to be a frontier market, let alone an emerging market country. But that should be no obstacle as the Central Asian state approaches a bond market that has seen Belarus and Iraq raise debt with ease in recent months.

News of Otkritie’s bail-out has filled the buy-side with questions about the nature of the Centra Bank of Russia’s recovery plans sending Otkritie’s subordinated bonds yo-yoing between a cash price of 49 and low to mid 80s.

Tajikistan has named two lead banks for its first ever bond, the proceeds of which will be used to partially fund a hydropower plant project.

Kazakhstan’s independent oil and gas company Nostrum navigated a tricky price discovery process to print five year bonds at 8% on Monday after what has been a difficult few months for the company.

Nostrum Oil & Gas hit the screens on Monday with a five year non-call two dollar note having completed its roadshow last week. But though the 8% handle on price guidance hascaught the attention of rival bankers.

KazmunayGas has failed to persuade its investors to remove covenants from its debt, with buyside analysts blaming the small fee offered and the lack of a coherent strategy.

KazAgro has seen a two notch cut in its rating from Standard & Poor’s, as the rating agency says that there is a declining state wilingness in Kazakhstan to provide funds for government related entities.