[KAZAKHSTAN TEMIR ZHOLY]

Kazakhstan Temir Zholy exp Baa2/BBB- (Moody's/Fitch) US$1bn 144A/Reg S 2-pt sr unsec gtd notes (5y FXD due 04/29/31 and 10y FXD due 04/29/36). gtd by Joint Stock Company "Kaztemirtrans" and "KTZ-Freight Transportation" LLP. VIA Joint Global Coordinators: Citi (B&D)/JPM/SOCGEN; Joint Leads Books: Abu Dhabi Commercial Bank/Citi (B&D)/Deutsche Bank/J.P. Morgan/Oman Investment Bank/Société Générale/Standard Chartered Bank joint active books. Kazakhstan Lead Managers: Teniz Capital and Freedom Broker. A development finance institution has indicated an interest to purchase up to 20% of each tranche. Listing: LSE (ISM), KASE and AIX. Governing Law: English. Denoms: 200,000 x 1,000. UOP: gcp. Pricing 04/24. Settle 04/29 (T+5). 144A/Reg S ISIN:
5y US48669DAC65/XS3353982112
10y US48669DAD49/XS3353982385.

VIA:
Joint Global Coordinators: Citi (B&D)/JPM/SOCGEN;
Joint Active Books: Joint Leads Books: Abu Dhabi Commercial Bank/Citi (B&D)/Deutsche Bank/J.P. Morgan/Oman Investment Bank/Société Générale/Standard Chartered Bank.
Kazakhstan Lead Managers: Teniz Capital and Freedom Broker.

Announced overnight as benchmark, final size came at $1bn with price progression as follows:

5yr – IPT 5.500%; GDNC 5.25% area; LNCH 5.00%; PXD $500m due 4/29/31 4.875% at 99.453 ylds 5.000% T+108.3.
10yr – IPT 6.00%; GDNC 5.625% area; LNCH 5.375%; PXD $500m due 4/29/36 5.250% at 99.043 ylds 5.375% T+108.3.

This is the first USD-denom trade for KZTZKZ since 2017 (There WAS a KZTKZ mandate (Citi/SG) for a USD 144/Reg S 3yr sr unsec deal announced on 5/6/22. But this deal did not materialize) 

As such comps away were the main focus included the following (but CONCESSION IS N/A) 

Republic of Kazakhstan (Baa1/BBB-/BBB)
- KAZAKS 4.412% due 10/28/30 $92.24 (4.599%; G75) - $1.5bn pxd OCT 2025
- KAZAKS 5.000% due 07/01/32 $101.37 (4.740%; G75)  - $1.35bn pxd JUN 2025
- KAZAKS 4.714% due 04/09/35 $99.05 (4.846%; G64) - $1.500bn pxd OCT 2024
- KAZAKS 5.500% due 07/01/37 $102.76 (5.171%; G82) - $1.15bn pxd JUN 2025

Development Bank of Kazakhstan (Baa1/BBB Moody’s/Fitch)
- DBKAZ 5.250% due 10/23/29 $102.11 (4.590%; G81) - $500m pxd OCT 2024
- DBKAZ 5.625% due 04/07/30 $103.41 (4.671%; G86) - $700m pxd MAR 2025
- DBKAZ 4.600% due 01/31/31 $99.00 (4.835%; G97) - $500m pxd OCT 2025

KazmunayGas National Co (Baa1/BBB Moody’s/Fitch)
- KZOKZ 5.375% due 04/24/30 $102.18 (4.770%; G96) - $1.25bn pxd APR 2018
- KZOKZ 3.500% due 04/14/33 $91.69 (4.921%; G86) - $750m pxd OCT 2020

Baiterek Natl Inv Hold (Baa1/BBB Moody’s/Fitch)
- BAINAT 5.450% due 05/08/28 $101.36 (4.741%; G101) - $500m pxd APR 2025
- BAINAT 4.650% due 10/01/30 $99.20 (4.852%; G101) - $500m pxd SEPT 2025

FINAL BOOKS:

$500m 5yr - $1.6bn (3.20x) - PEAK $2.5BN (-36% Attrition)
$500m 10yr - $1.7bn (3.40x) - PEAK $3.0BN (-43.33% Attrition)