Nostrum non-call three nets $400m with minimal premium

By Steven Gilmore
11 Feb 2014

Kazakh oil and gas company Nostrum priced a twice subscribed $400m bond on Monday, which bodes well for other Kazakh corporations expected to tap the market later this year, said debt bankers. Nostrum’s bond was priced just hours before the tenge dropped by almost 20% after the central bank on Tuesday said it would stop supporting its previous exchange rate. But for credits like Nostrum with dollar earnings, the devaluation should be a help rather than a hindrance, said analysts.

The company priced its five year non-call three bond at par to yield 6.375%, after approaching investors with guidance in the 6.5% area. This was a punchy start to execution as most buyers had asked for a higher yield, although general interest from a two day roadshow last ...

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