• Bond issue

    Bond issue

    Sovereign Wealth Fund

    KZT 75 000 000 000

    Joint bookrunner and underwriter

    Bond issue

  • Debut Eurobond issue

    Debut Eurobond issue

    Energy

    USD 500 000 000

    Kazakhstan Lead Manager

    Debut Eurobond issue

  • Debut zero-coupon bond issue

    Debut zero-coupon bond issue

    Oil & Gas

    KZT 100 000 000 000

    Joint bookrunner and underwriter

    Debut zero-coupon bond issue

  • Debut Eurobond issue

    Debut Eurobond issue

    Oil & Gas

    USD 125 000 000

    Kazakhstan Lead Manager

    Debut Eurobond issue

  • Debut direct Eurobond issue

    Debut direct Eurobond issue

    Commercial Banking

    USD 500 000 000

    Joint Lead Manager & Bookrunner

    Debut direct Eurobond issue

  • Debut direct benchmark Eurobond issue

    Debut direct benchmark Eurobond issue

    Banking

    USD 777 000 000

    Joint Lead Manager

    Debut direct benchmark Eurobond issue

Consulting & Underwriting

Halyk Finance renders a full range of investment banking services necessary for the Clients’ securities issue, placement and post-placement liquidity support

before …

  • analyzing and working out the terms (security type, issue size and coupon rate, circulation period) of the upcoming securities’ issue
  • preparation of the emission prospectus and investment memorandum
  • registration of the securities’ issue in the National Bank of Kazakhstan (the “NBK”)
  • backing of the Client’s listing application to the Kazakhstan Stock Exchange’s (the “KASE”) Listing Committee
  • vigorous marketing of the upcoming issue to all potential investors
  • placement of the Client’s securities

and after placement

  • rendering market-making services to improve liquidity of the Client’s securities
  • regular in-depth analytical coverage of our Clients to support their successful relationships with investors and to improve our Clients’ image

Additional advantages for our Clients

Halyk Finance can offer its underwriting services on “firm commitment” terms, i.e. we can securely place the whole Client’s issue or any part chosen under pre-agreed conditions

Halyk Bank can provide a credit line to our Client for the period of its securities’ issue and placement to ensure timely financing of the current projects with the following loan repayment from the funds raised from the securities’ placement

Moreover, our team keeps good working relationships with all regulatory bodies.

Selected examples of our work

Our recent public transactions include:

· Joint bookrunner and underwriter of KZT 75 bln ($517 MM) 7-year 1st bond issue of the Sovereign Wealth Fund Samruk-Kazyna on the KASE in April 2010 under the Fund’s 2nd bond program. The issue was fully placed on the local market while the coupon rate was set at 5.89% p.a. The total size of the 2nd bond program is KZT 150 bln (c. $1.03 bln).

· Oil & gas: Sole Kazakhstan Financial Advisor to Zhaikmunai LLP (an independent oil and gas E&P company in Northwestern Kazakhstan) for the issuer substitution and KASE listing transaction of a $450 MM 5-year Eurobond issue of Zhaikmunai Finance B.V. in February 2011. The successful completion of this complex transaction marks Halyk Finance’s experience not only in helping its clients raise new funds in the capital markets but also in restructuring and optimizing existing deals.

· Banking: Joint Lead Manager for a $777 MM 5-year Eurobond issue of JSC Development Bank of Kazakhstan in December 2010 and January 2011. Despite an extremely volatile US Treasuries market during roadshow and placement, this debut direct benchmark Eurobond issue marked the lowest coupon rate(5.5%) ever achieved for any USD-denominated transaction from Kazakhstan and successfully re-opened (since April 2008) the international debt capital markets for Kazakhstan’s financial institutions. The Eurobonds are listed on both the LSE and the KASE.

· Commercial Banking: Joint Lead Manager & Bookrunner for a $500 MM 10-year debut direct Eurobond issue of JSC Halyk Bank of Kazakhstan in January 2011. Halyk Bank has become the 1st Kazakhstan’s commercial bank which has successfully placed its Eurobonds since April 2008 backed by the hefty global investor order book of $2.2 bn from 60 accounts, marking a low coupon rate of 7.25% and pricing inside JSC Halyk Bank’s 2017s on the mid swap spread basis with a 10-year yield-to-maturity (“YTM”) of 7.50%. The Eurobonds are listed on both the LSE and the KASE.

· Oil & gas: Joint bookrunner and underwriter of a 7-year debut zero-coupon bond issue with the nominal amount of KZT 100 bn (c. $678 MM) of the National Company KazMunayGas in December 2010. This successful transaction is the 1st corporate zero-coupon bond issue in the history of Kazakhstan’s securities market and marks KMG’s debut public bond issue in the domestic market. The deal was successfully priced at a 7% YTM and placed with more than 20 international and domestic investors.

· Oil & Gas: Kazakhstan Lead Manager for a $1.25 bn 10L-year debut Eurobond issue of the National Company KazMunayGas in November 2010. The deal marked a low coupon rate of just 6.375%. These Eurobonds are the debut direct issue of the National Company KazMunayGas and are listed on both the LSE and the KASE.

· Joint bookrunner and underwriter of KZT 75 bln ($508 MM) 10-year 2nd bond issue of the Sovereign Wealth Fund Samruk-Kazyna on the KASE in September 2010 under the Fund’s 2nd bond program with a total amount of KZT 150 bln (c. $1.02 bln). Despite the (unusual) benchmark size of the deal for the local market the issue was fully subscribed at a 6.5% YTM implying a very small premium to Kazakhstan sovereign long-term bonds.

· Telecommunications: The sole underwriter for KZT 800 MM ($5.44 MM) 3-year bond issue of JSC "KazTransCom" in July 2010 on the Kazakhstan Stock Exchange. JSC "KazTransCom" is one of the largest independent telecommunications operators in the country, providing a broad range of telecommunications data services through its own cable backbone network and several hundred satellite stations, providing complete coverage of the territory of Kazakhstan.

· Uranium: Kazakhstan Lead Manager for a $500 MM 5-year debut Eurobond issue of the National Atomic Company Kazatomprom (the national uranium operator) in May 2010. The deal marked the lowest coupon rate (6.25%) for any EMBI eligible transaction. The Eurobonds are listed on both the LSE and the KASE.

· Power Generation and Distribution: Joint bookrunner and underwriter of KZT 10 bln ($67 MM) 5-year debut bond issue of Ekibastuz GRES-1 (the largest thermal coal-fired power station in Kazakhstan owned by the National Welfare Fund Samruk-Kazyna and Kazakhmys Plc. with a 4,000 MW capacity) on the Kazakhstan Stock Exchange (the “KASE”) in February 2010.

· Agriculture: Sole bookrunner and underwriter of KZT 15 bln ($100 MM) 3-year bond issue of the National Company Food Contract Corporation(mandated to ensure the country’s food security) on the KASE in February 2010.

Farkhad Okhonov
Director of Consulting & Underwriting
e-mail: f.okhonov@halykfinance.kz 
phone.: +7 (727) 330 01 52