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Economy

KazMunayGas takes $500 million of the $658 million its dollar bondholders offered

Holders of KazMunayGas's 5.375% notes due 2030 tendered $658.1 million by the early deadline of 2 September, the company said on Thursday. It will buy $500 million of them, the cap it set in August, at a proration factor of 73.1%, and settle on 4 September.

KazMunayGas takes $500 million of the $658 million its dollar bondholders offered

The result announcement, published through RNS, closes the early leg of the tender opened on 19 August. Notes tendered after the early time "will not be accepted for purchase": the cap is full, and the window that formally runs to 18 September has nothing left to buy.

The coupon retired is $26.9 million a year.

The price is the one set in August, $1,012 per $1,000 of principal for early tenders, so the $500 million costs about $506 million before accrued interest. Of the $1.25 billion issue, $750 million stays outstanding to April 2030.

The coupon retired is $26.9 million a year. KazMunayGas priced its 3.5 billion yuan bond on 26 August at 2.3% for 5 years and 2.8% for 10; the coupons on that paper come to about $13.5 million a year at the 1 September cross rate, on a sum, $521 million, almost equal to the buyback. The company has not paired the two operations in any statement the desk has read; the yuan bond was scheduled to settle on 2 September, and the dollar notes settle two days later.

For the notes still out, the late window's $982 is a price on paper: the company will not buy.