Kazakh KazAgro to raise another USD 1bn via Eurobonds issue


State-owned KazAgro holding plans to raise USD 1bn next year via Eurobonds issue, CEO Dauren Makhazhanov has stated. The deadline for the issue is H1/14, he added. The funds will be used to finance ongoing programs of the holding.

KazAgro offered its debut USD 1bn Eurobonds in May at 4.625% APR. HSBC and JP Morgan acted as joint runners of the issue. Total amount of the orders reached USD 3.3bn from around 200 investors. The structure of the investors was as follows: 35% from the UK, 33% from the USA, 13% from Kazakhstan and 15% from Europe. The raised funds will be allocated to finance investment programs as stabilization of the grain market in 2013-2014, support farmers and to replace more expansive sources of funds.

KazAgro was established in 2006. It is responsible for the state agricultural policy.