Deutsche Bank London has been mandated to arrange a one-year US$50mn syndicated term loan for Astana Finance of Kazakhstan. This will be the first time that Astana Finance has raised finance in the syndicated loan market. The transaction follows Astana Finance’s recent successful eurobond transaction under established GMTN programme arranged by Deutsche Bank and Citigroup.
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.
The firm has two principal business lines, namely providing financial services activities and commercial lending, as well as 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 owns a 25.5% of Astana Finance’s equity, which is a blocking interest.
Deutsche will shortly launch the syndication.
The margin is 1.20% per year.