Borrowings at international markets are available for Kazakhstan

BUSINESS INSIGHT

This year KazTransGas took a US $400 mln syndicated loan with 1.5% 3M Libor. Interest rate is average. However, this transaction shows that since Russia-Ukraine crisis, Kazakhstan borrower market has again become attractive for international debt financers. Potentially, interest rates may be even lower than in the case of KazTransGas.
 

In opposite to these borrowings, Kazakhstani potential borrowers are looking for M&A opportunities. They are now looking for investors with their finance resources and operational team. So, we anticipate that M&A transactions will compete with debt finance. Therefore, interest rates for Kazakhstan corporate borrowers will become more attractive and may be around 100 bps plus LIBOR. This will increase foreign investments in Kazakhstan and business activity in the region.