Global law Firm White & Case LLP has advised Citigroup Global Markets Limited, J.P. Morgan Securities plc and HSBC Bank plc as Lead Managers on the establishment of the Republic of Kazakhstan’s US$10 billion Medium Term Note Programme and a subsequent US$2.5 billion issuance under it.
The issuance is the first by the Republic of Kazakhstan in 14 years and consists of a US$1.5 billion series of 3.875 percent Notes due 2024 and a US$1 billion series of 4.875 percent Notes due 2044.
London-based White & Case partner Francis Fitzherbert-Brockholes, who led the team which advised the banks, said: “Kazakhstan’s issue is significant not only because of its rarity but also because it is the first sovereign issue to use the collective action and pari passu clauses recommended in August by ICMA.
“The collective action clauses allow cross-series voting and respond to the difficulties seen in some recent sovereign restructurings where majority acceptance of the restructuring terms was not able to bind dissenting minorities. The recommended pari passu clause has been developed in response to the US litigation in relation to Argentina and aims not to change but to clarify the scope of the sort of clause used in many English law sovereign bonds. Kazakhstan is a jurisdiction in which we as a firm have a long history of firsts, and we were very pleased to have been involved in yet another!”
The White & Case team was led by London partner Francis Fitzherbert-Brockholes and included partners Pavel Kornilov (Astana) and Ray Simon (New York) with support from associates Tamara Dyer (London), Yevgeniy Ibragimov, Nargiza Khamrayeva (both Astana) Stephanie Gentile (New York).
Source: www.whitecase.com
