Russia sanctions boost KMG deal

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By Francesca Young
18 Apr 2018

Kazmunaygas’ (KMG) $3.25bn bond on Tuesday proved to be a beneficiary of the latest round of US sanctions against Russia sanctions, as investors sought a new oil play away from the volatility surrounding assets from the proscribed state.

KMG, Kazakstan’s national oil company, rated Baa3/BB-/BBB-, printed its triple tranche bond from a book of $8.3bn. The $500m 4.75% 2025s drew orders of $1.25bn and the $1.25bn 5.375% 2030s orders of $2.3bn, but the skew was towards the $1.5bn 6.45% 2048s, which drew a book of $4.75bn.

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