Samruk Kazyna NWF to reduce its group of companies’ external debt
As part of the measures for improving the financial stability of the National Welfare Fund, developed on behalf of Chairman Akhmetzhan Yesimov of the Fund, are expected to cut down the Samruk Kazyna Group of Companies’ external debt by $650 million, the Fund’s press service informs.
In particular, Kazakh Temir Zholy National Company early repaid Eurobonds in the amount of $780 million, which allowed reducing the share of KTZh liabilities in hard currency from 57% to 36% of the total debt portfolio.
At the same time, the Fund continues to develop intra-group financing on market conditions. At the end of 2019, lending to subsidiaries amounted to more than 185 billion tenge, which allowed continuing the implementation of investment projects in a timely manner and not increasing the consolidated debt of the Fund's Group.
In addition to the above amounts, a group of KazMunayGas for 10 months of the current year reduced obligations for advance payments of oil in the amount of about $2.6 billion.
In September 2019, KazAtomProm carried out an additional placement of shares, where the Fund raised $128.2 million (about 50 billion tenge). All funds from the sale of shares as part of the execution of the order of the First President were directed to the National Fund of Kazakhstan.
In addition, in December 2019, the Fund completed a transaction to acquire a 50% stake in Ekibastuz State District Power Station-2, within the framework of which it was possible to restructure the Company's obligations. This acquisition will allow the Fund to continue the implementation of the investment program of Ekibastuz GRES-2 Station regarding the construction of the 3rd power unit.
Of note is that by the end of 2018 the external debt of the Fund's Group of Companies was reduced by $4 billion.
