Deutsche Bank AG London has been mandated to arrange a one-year US$75mn syndicated term loan for Astana Finance. This will be the first time that Astana Finance has raised finance in this market.
Astana Finance, rated Ba1 (outlook stable) by Moody’s and BB+ (outlook stable) by Fitch, is one of the leading non-bank financial institutions in Kazakhstan in terms of shareholders” equity.
It has two principal business lines, namely providing financial services activities and undertaking private equity investments in high-growth sectors of the economy in the city of Astana and other fast growing areas of Kazakhstan.
The Municipality of Astana has expressed through a general comfort letter issued in April 2006 its willingness to maintain and continue its ownership of a blocking interest of Astana Finance, meaning a shareholding not less than 25% plus one share.
The Municipality of Astana currently owns a 30.12% of Astana Finance’s equity, which is a blocking interest.
The margin for the loan is 1.20%