Kazakhstan's Kazkommertsbank assumes unit's liabilities for notes

By Susanna Moon

Chicago, Aug. 24 - JSC Kazkommertsbank announced a change of issuer for the $200 million 8 5/8% subordinated loan participation notes due 2016 and the $250 million 8½% subordinated loan participation notes due 2017 issued by Kazkommerts Finance 2 BV.

The change will result in all of the issuer's liabilities for the notes being transferred to Kazkommertsbank, according to a company press release.

Kazkommerts Finance said on June 29 that it began a consent solicitation to amend the two series of notes.

Holders were asked to substitute the company with the bank as primary obligor under the notes and to collapse the loan participation note structure in favor of a straight bond structure, including the termination of the related loan agreement, the removal of the security package and removal of the limited recourse provisions in the notes.

The changes also allowed the company to list the notes on the Kazakhstan Stock Exchange in addition to the London Stock Exchange.

Kazkommertsbank is based in Almaty, Kazakhstan.

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