KazTransGas JSC, the National Gas Operator, announced a proposal on obtaining consent in respect of guaranteed bonds in the amount of USD 750 mln with an interest rate of 4.375% and maturity in 2027.
At the same time, KazTransGas JSC proposed to approve and give the consent to sale up to 100% shares or assets of its subsidiaries, KazTransGas Aimak JSC and KazTransGas Onimderi LLP, to a third party, which is neither a parent company of KazMunaiGas National Company JSC, nor its subsidiary company.
In this regard, KazTransGas JSC proposes to approve introduction of certain amendments and additions to the trust agreement dated September 26, 2017 concluded between the Issuer, Intergas Central Asia JSC, and the London Branch of Citibank N.A.
KazTransGas Aimak JSC is responsible for domestic gas distribution to end users and amounted to about 12% of the consolidated EBITDA of KazTransGas JSC and 15% of the consolidated debt as of the end of 2018. KazTransGas Onimderi LLP, a service company, amounted to less than 1% of the consolidated EBITDA for 2018, and had no debt.
KazTransGas JSC expects that this transaction will reduce the level of consolidated debt by approximately USD 232 mln, which will significantly improve the general position of liquidity and will favorably affect EBITDA.
The potential price has not yet been announced, the transaction is subject to approval by the regulator. The meeting of bondholders will be held on August 1, 2019 in the London Office of Baker & McKenzie LLP, and then KazTransGas JSC will announce the results.
More detailed information is available on the website of the Kazakhstan Stock Exchange.