Kazkommertsbank in Kazakhstan has repaid in full its US$500mn Eurobond, one of the bank’s largest liabilities. The announcement squashed any fears of a potential default, and the bank hopes it will help restore confidence in the Kazakh banking sector, damaged by defaults on bonds by both BTA Bank and Alliance Bank.
“We hope that the international investor community will see this as a positive development as confidence increases in Kazkommertsbank and the Kazakh banking sector in general, comments Nina Zhussupova, chairperson of the management board of Kazkommertsbank.
Acccording to the bank, the Eurobond was repaid in full on the date of its maturity from the bank’s own funds. The bond was issued in November 2004 by Kazkommertsbank’s subsidiary, Kazkommerts International.
The bank had bough some of the bond back, announcing in September it has bought back US$76mn of its due November 2009 eurobond between October 2007 and September this year. The bond coupons were priced at 7%, and the bank bought US$75.96mn bonds at an average price of 91.8.
Last Updated November 04, 2009
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