By Paul Deckelman
New York, April 9 - Halyk Bank of Kazakhstan priced an upsized $500 million of senior secured notes to yield 9.5% on Wednesday, emerging market syndicate sources said.
The notes, which will mature on Oct. 16, 2013, carry a 9¼% coupon and priced at 98.948, or a spread of 692 basis points over comparable Treasuries. The pricing occurred in line with guidance set earlier.
The new issue, which was sold under Rule 144A and Regulation S, was brought to market by joint book-running managers J.P. Morgan and UBS Investment Bank.
The deal was sold through Halyk's Dutch-based subsidiary, HSBK BV, with the bonds unconditionally and irrevocably guaranteed by JSC Halyk Bank.
The bonds are non-callable.
The quickly shopped deal priced within a few hours of appearing on market participants' radar screens. It was originally talked around the market as being at least $300 million, with a possibility that the size might be increased to as much as $500 million, the amount which eventually priced. After pricing, the new bonds were seen to have traded up to bid levels at 101.25 in initial aftermarket dealings.
Based in Almaty, the largest city in Kazakhstan - formerly part of the old Soviet Union but an independent republic since 1991 - Halyk began operations in 1923 as a government-run bank; it is now a public joint stock company and is the nation's third-largest bank in terms of total assets, as well as the largest Kazakh bank in terms of retail deposit market share and branch network size.
| Issuer: | HSBK BV
|
| Guarantor: | JSC Halyk Bank
|
| Amount: | $500 million
|
| Maturity: | October 16, 2013
|
| Type: | Senior unsecured notes
|
| Bookrunners: | JP Morgan and UBS Investment Bank
|
| Coupon: | 9¼%
|
| Price: | 98.948
|
| Yield: | 9.5%
|
| Spread: | 692 bps over 2.5% Treasury note due March 2013
|
| Call features: | Non-callable
|
| Settlement: | April 16
|
| Ratings: | Moody's: Baa3
|
| S&P: BB+
|
| Fitch: BB+
|
| Distribution: | Rule 144A/Regulation S
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
