Kazakhstan's KazMunayGas raises 3.5 billion yuan in dim sum bond sale

KazMunayGas, Kazakhstan's state-owned oil and gas company, raised 3.5 billion yuan in its second dim sum bond sale in less than a year, tapping the offshore yuan market amid robust investor demand.

• The dual-tranche offering includes a 1.5 billion yuan five-year portion with a 2.3 percent coupon and a 2 billion yuan 10-year at 2.8 percent, according to a term sheet reviewed by Reuters on Wednesday. 
• The five-year tranche was priced at 99.298 to yield 2.45 percent, while the 10-year tranche was priced at 98.452 to yield 2.98 percent. 
• The combined order book was over 24 billion yuan, making the deal nearly seven times oversubscribed.
• The company will use the proceeds for general corporate purposes, including refinancing.
• The deal marks the company's second dim sum bond issuance within a year. It sold a debut 1.25 billion yuan (US$190 million) five-year bond last October at a coupon rate of 2.95 percent.
• More global issuers are turning to the once-niche Asia bond markets in a world of rising uncertainty and record borrowing, to lower their financing costs and diversify funding sources.
• Dim sum bond sales reached record highs of around 350 billion yuan in the first half of this year, rising more than 60 percent from the same period last year, and international borrowers accounted for half of the total, according to Goldman Sachs.

Reuters

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓